North America Metro Ethernet Services Market Analysis Report By Service (E-Line, E-LAN, E-Tree, E-Access, E-Transit), By Category (Retail, Wholesale), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The North America metro ethernet services market size was valued at USD 18.7 billion in 2017 and is anticipated to register a CAGR of 4.8% from 2018 to 2025. The promising growth prospects of this market can be attributed to increasing demand for on-demand delivery of content services; carrier Ethernet provides the added advantage of being offered as a service to consumers, making it an ideal candidate for on-demand delivery of content. Rising demand for better user experience and the increasing popularity of offerings such as video conferencing and high-quality video streaming are also driving the need for effective carrier Ethernet services in metro areas in the region.

Steadily increasing and unpredictable demands for high-performance networks and the need for reliable connectivity are encouraging data centers and service providers in the region to switch to carrier Ethernet. This has been made easier due to the evolution of Software-Defined Networking (SDN), using which, providers can cater to scalable, simple, and reliable networking experience to users at affordable prices.

Growing user expectations for high-quality video content and video streaming, which has subsequently propelled the demand for carrier Ethernet in metro areas, is also a key factor driving the regional market. Metro networks are required to be designed such that they are capable of handling heavy data traffic demands originating from the high-definition video content, in turn necessitating the need for enhanced services across the region.

Significant rise in demand for cloud-based applications and the evolution of metro networks from 1 GbE to 100 GbE ports and connections across residential as well as corporate sectors are further fueling demand for quality offerings in the metro carrier Ethernet industry. Growing demand for high quality, scalable, reliable, and economical connectivity options in the region, prominently the retail enterprise sector, is leveraging the need for carrier Ethernet in metro areas. Additionally, increased use of cloud-based applications, video applications such as video conferencing and video streaming, and other data-intensive services are catapulting demand for high bandwidth requirements among enterprises, leading to improved growth prospects for the industry.

However, owing to high internal competition among telecom providers and solutions in the region, buyers/consumers have higher bargaining power. This is likely to emerge as a leading hindrance to the market as the scenario can slow down the economic growth of market players.

Category Insights

Based on the category, the market has been segmented into retail/enterprise and wholesale/access. The retail/enterprise segment is expected to witness substantial growth over the forecast period, owing particularly to high demand for reliable and high-speed data services stemming from the retail/enterprise sector in the U.S. The segment is likely to continue to hold its dominant spot and generate the maximum revenue over the forecast period.

Increasing demand for VoIP, video conferencing, and high-quality video streaming in the enterprise/retail sector in metro areas will help the segment play a crucial role in spearheading the development of the North American market.

Service Insights

The North America metro Ethernet services market has been segmented into E-Line, E-LAN, E-Tree, E-Access, and E-Transit. The E-LAN segment accounted for a market share of over 25.0% in 2017 and is expected to generate the highest revenue over the forecast period.

The E-Tree segment is also likely to witness significant growth over the forecast period across the region, and hence, carrier Ethernet in metropolitan areas is projected to experience notable growth shortly. Telecom network and service providers are investing in joint efforts to cater to customers efficiently to retain existing customers and capture the many lucrative growth opportunities that the regional market is likely to offer over the forecast period.

Regional Insights

North American enterprises are grappling with flat and falling IT budgets owing to global economic slowdowns, currency fluctuations, and recessions over the past few years. Simultaneously, bandwidth requirements are continuing to grow and demand for carrier Ethernet is on a rise owing to the increasing reliance upon collaborative applications amongst a distributed customer base to share massive data over the WAN.

The U.S. dominated the North America market in terms of revenue in 2017, accounting for close to 45.0% of the overall market. The U.S. market is also anticipated to demonstrate a steady growth trajectory over the forecast period.

North America Metro Ethernet Services Market Share Insights

Key players in the market include Amdocs Limited; Cogent Communications, Inc.; Telefonaktiebolaget LM Ericsson; Level 3 Communications (CenturyLink); Liberty Global; Netcracker Technology Corporation; NewWave Communications; Mediacom Communications Corporation; AT & T Inc.; and Charter Communications.

Companies are focusing on strategies such as new product launch to deliver improved devices to their customers and expand their businesses worldwide. In December 2016, Amdocs, Inc. announced its selection by a Singaporean telecommunications infrastructure provider, NetLink Trust, as a provider of advanced business and operations support systems (B/OSS). The Amdocs’ solution would allow acceleration of fiber connectivity, reduce maintenance and repair times, and enhance the quality of service.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the North America metro Ethernet services market report based on category, service, and region:

• Category Outlook (Revenue, USD Million, 2014 - 2025)

  • Retail/Enterprise

  • Wholesale/Access

• Services Outlook (Revenue, USD Million, 2014 - 2025)

  • E-Line

  • E-LAN

  • E-Tree

  • E-Access

  • E-Transit

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico