The global carrier Ethernet equipment market is expected to witness significant growth over the forecast period owing to the growing adoption of IP-based next generation networks. The need to reduce total expenditure of service providers is expected to primarily drive the carrier Ethernet equipment market growth. Additionally, increasing demand for EADs and rapid adoption of carrier Ethernet for mobile backhaul may favorably impact market growth.
Several benefits offered by carrier Ethernet equipment such as scalability, reliability, and cost-effectiveness may also drive the market growth over the coming years. Increasing usage of Ethernet for higher bandwidth at lower cost is also expected to contribute significantly towards market growth. The market is expected to be driven by business and residential services along with surging demand in wireless backhaul markets as carrier Ethernet equipment are the most cost-effective approach. Further, Ethernet is rising as ubiquitous protocol used in Local Area Networks (LAN) owing to its simplicity and easy usage. Interconnection among telecom equipment whether routers to routers, DSLAMs to routers, or routers to optical gear is eased by Ethernet. Owing to the aforementioned benefits, the global carrier Ethernet equipment market is expected to witness substantial growth over the next few years.
The rising need to reduce total expenditure of service providers is anticipated to be the key factor contributing to market growth. Other key factors expected to stimulate market demand include escalating transformation of network to IP-enabled next-generation networks and rising demand for EADs. The global carrier Ethernet equipment market is expected to witness high growth owing to shifting trend towards green carrier Ethernet equipment so as to reduce energy consumption, which in turn drives the market significantly.
Growing traffic particularly video traffic from consumers, business and mobile backhaul networks is expected to positively impact the carrier Ethernet market demand over the next few years. Additionally, telecom operators are targeting to move from TDM to IP packet-based next-generation networks, which extensively depend on IP, MPLS, and Ethernet technologies, further driving the carrier Ethernet equipment market growth. Continuous maturity of carrier Ethernet technology supported by standards bodies’ efforts paired with the consistent rise in bandwidth usage is expected propel market demand over the forecast period.
Surging demand for mobile broadband and wireless technology is anticipated to stimulate the need for higher bandwidth and scalable infrastructure. The carrier Ethernet equipment market is expected to gain momentum over the forecast period owing to rising demand of businesses for metro Ethernet services. Strong growth in IP-enabled mobile, video, and data networks is anticipated to positively impact market demand. Demand for carrier Ethernet business services either from new or existing customers, who wish to outgrow their network services further catapults market demand extensively. Improved network consistency and reliability of Ethernet equipment are a few factors that are expected to favorably impact market growth. However, rapid technological advancements may pose challenge to the carrier Ethernet equipment market as it might encourage end-users to delay equipment purchase. Further, interoperability issues may pose major hindrance to the carrier Ethernet equipment market.
Carrier Ethernet equipments can act both as supporting infrastructure and as a service. It can be used to deploy business, triple-play, and mobility services. They support three major applications including mobile backhaul, business services, and network infrastructure including data center interconnect. The carrier Ethernet equipment market is expected to gain prominence over the forecast period owing to aforementioned benefits.
Asia pacific is expected to exhibit high growth over the forecast period closely followed by North America and Europe. This may be attributed to the growing consumer demand in this region.
The key market participants comprise Cisco Systems Inc., Alcatel-Lucent SA., Huawei Technology Co. Ltd., Ericsson Inc., Fujitsu Ltd., Hitachi Cables Ltd., Bharat Sanchar Nigam Ltd., Bharti Airtel, Sharp Corporation, J A Solar Holdings Co. Ltd., Suntech Power Holdings Co. Ltd., Juniper Networks Inc., Silk telecom, and NextGen Network.
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