Metro Ethernet market on fire: tops $4.9B in 2005, will triple by 2009

Infonetics: worldwide metro Ethernet equipment revenue nearly doubled between 2004 and 2005, from $2.6 billion to over $4.9 billion, and is expected to triple to $15.5 billion by 2009, .

The universal appeal of Ethernet is that it is less expensive than other technologies. Ethernet is becoming an increasingly integral part of metro networks, with equipment spending accumulating almost $49 billion over the five-year period between 2005 and 2009. Every year Ethernet will account for a larger portion of metro capex, led by phenomenal growth in carrier Ethernet switches and routers (CESR), a growing mainstay for providers to deliver Ethernet services.

• Metro Ethernet port shipments are projected to skyrocket in the next few years, increasing more than 30-fold between 2004 and 2009; the majority of ports sold will be VDSL copper ports

• Revenue in nearly all metro Ethernet equipment categories grew at a fast rate in 2005, with CESR, EPON, Ethernet access devices (EADs), and Ethernet over copper/cable posting triple-digit growth

• worldwide between 2005 and 2009:

• CESR revenue will more than double, representing 32% of the metro Ethernet equipment market by 2009

• EADs will grow 647%, strongly influenced by Ethernet services uptake

• Ethernet over copper and cable will grow 853%, driven by healthy VDSL deployments in Asia and North America

• RPR revenue will grow 226%

• North America accounted for 34% of all metro Ethernet equipment revenue in 2005, Asia Pacific for 33%, EMEA for 30%, and CALA for 3%

Metro Ethernet Equipment

Publ 20060417