As the economy continues its struggle to improve, there are luckily certain areas of the market that are cleanly avoiding a downturn – for instance, Ethernet.
Global analyst firm Ovum (News - Alert) expects that the Ethernet services global market will exceed $62 billion by 2018; the market is growing at a 13.6 percent compound annual growth rate (CAGR) from 2012. Ethernet revenues in 2012 were up to $29.1 billion from $26.5 billion in 2011; and now in 2013, Ovum predicts revenues to be up 16 percent and reach $33.8 billion.
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Regionally, the highest growth rate was attributed to China and ASEAN 5 (Indonesia, Malaysia, Philippines, Thailand and Vietnam) at 23.9 percent; the Ethernet market in that part of the world has continued to expand. The next highest growth rate was predicted for Europe, Middle East and Asia (EMEA), at 14.9 percent, based on carrier activities in Eastern Europe and the Middle East. Steady growth was also projected for North America at an 11 percent CAGR from 2012 to 2018. For Japan, the largest Asia-Pacific Ethernet market (at $6.5 billion in 2012), the Ethernet market is expected to continue growing at a CAGR of 5.3 percent.
Emerging Ethernet markets in other areas also look poised to grow and expand; telecom infrastructure is improving worldwide to allow more businesses to connect to networks both locally and globally. According to Ian Redpath, principal analyst, network infrastructure at Ovum, “Enterprises continue to combine previously separated voice and data networks into one converged Ethernet network connection, are comfortable in doing so, and are happy to reap the connectivity savings.”
Redpath also recommends tuning up communication service providers (CSP (News - Alert)) for the best business results: “The most fundamental state-of-competition factor is the number of players in a market. Competition continues to heat up in key global cities and regions. CSPs will need to continue to sharpen their differentiators: access, interconnection, cost base, service wrap and bundle prepositions.”
Edited by Rich Steeves