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Gigabit Ethernet poised for growth

Ethernet is evolving beyond its LAN roots and will continue to develop into an important networking technology, a recent study by Pioneer Consulting, LLC of Boston, MA has shown. The market research f...


January 1, 2002  


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Ethernet is evolving beyond its LAN roots and will continue to develop into an important networking technology, a recent study by Pioneer Consulting, LLC of Boston, MA has shown. The market research firm says Ethernet is poised to penetrate an increasing number of markets (i.e., access, MAN and WAN) throughout major regions of the world.

In its “Gigabit Ethernet: Equipment and Service Provider Opportunities in Multiple Markets” study, the market research firm predicts steady worldwide growth for Ethernet equipment suppliers over the next five years, with the Gigabit Ethernet market expected to reach US$44 billion by 2005.

The study forecasts that total worldwide equipment sales for all types of Ethernet will increase from US$17.3 billion in 2001 to US$145.2 billion by 2005, with the North American MAN market representing the single, greatest market opportunity for Ethernet equipment.

“North America will dominate the Ethernet equipment market,” says Doug McEuen, senior market analyst, optical networking for Pioneer. “The North American Ethernet equipment market will lead the marketplace because of its intense competitive environment, leadership in equipment production and supply, and concentration of Internet traffic.”

Will Ethernet find acceptance in the Access, MAN and WAN market segments? Pioneer Consulting says that additional technological advancements, such as continuous refinement of existing Gigabit Ethernet technologies including 1-Gig-E, 10-Gig-E and the development of resilient ring technology, will provide the resources needed to wage a successful battle against alternative technologies.

“The lower costs of Gig-E equipment make it extremely attractive to financially strapped carriers,” said Paul Kellett, senior director of research for Pioneer. “However, carrier class reliability and quality of service must be clearly demonstrated to carriers to achieve further market penetration.”


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