U.S. enterprises are expected to spend more than $49 billion over the next five years on Ethernet services provided by carriers, according to a new study from The Insight Research Corp. According to Insight's new study, US Carriers and Ethernet Services, 2013-2018, Ethernet's popularity is driven by its ability to meet growing bandwidth demands at lower cost and with greater flexibility than legacy TDM-based services.
Ethernet metro area and wide area services are already ubiquitous, finds the research -- and available from all major data service providers, including cable MSOs, who are building a formidable base around Ethernet services in the small to mid-sized business market, says the report. The large-scale migration of cell site mobile backhaul from TDM to Ethernet will continue to be a major driver over the next five years, says Insight, as carriers complete their 4G LTE deployments. As a result, the industry revenue is expected to grow from nearly $5.5 billion in 2013 to over $13 billion by 2018, according to the market research firm.
The study examines Ethernet market spending and usage patterns by topology (E-line, E-LAN, and access), regional domain (metro, wide area, and access), retail/wholesale, and various bandwidth levels. In addition, the report covers the impact industry standards, such as the Metro Ethernet Forum’s Carrier Ethernet 2.0, have on the market, as wells as carriers’ increased reliance on interoperability with other service providers.
"Ethernet services in the small to mid-sized business market is the fastest growing segment of this market, while wireless backhaul still commands the top segment," comments Fran Caulfield, director of research at Insight. "Over the five year forecast period we project a compounded annual revenue growth rate of 19 percent, with the highest growth levels in the next two years.”