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Future looks good for Metro Ethernet gear market

Worldwide metro Ethernet equipment revenue totaled $3 billion in 2003, and is projected to grow 157% to $7.7 billi...


July 23, 2004  


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Worldwide metro Ethernet equipment revenue totaled $3 billion in 2003, and is projected to grow 157% to $7.7 billion in 2007, according to Infonetics Research’s Metro Ethernet Equipment market size and forecast service.

Metro Ethernet ports are growing strongly as well, increasing 440% between 2003 and 2007.

Close to $25 billion will be spent worldwide on Ethernet in metro networks between 2003 and 2007. Every year over the next 10 years, Ethernet will account for a larger portion of metro capital expenditures, driving double-digit growth through 2007.

"Routers with Ethernet interfaces and Ethernet switches continue to be the mainstay products of the metro Ethernet market, together representing about two-thirds of the market, but Ethernet over SONET is growing quickly and now represents nearly a quarter of all metro Ethernet revenue," said Michael Howard, Infonetics Research principal analyst.

"This makes sense, as there are an estimated 375,000 SONET and SDH rings in the world, and Ethernet over SONET allows providers who invested in these rings to meet customer demand for faster, more flexible service via Ethernet. It also simplifies their networks, making it easier to carry fast growing data and TDM traffic at the same time."

All figures quoted are in U.S. dollars.