Metro Ethernet market set for growth of 131%

The worldwide metro Ethernet equipment market is expected to boom from US$2.5 billion in 2002 to US$5.7 billion in 2006, according to Infonetics Research.

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By  Zoe Moleshead Published  February 9, 2003

The worldwide metro Ethernet equipment market is expected to boom over the coming four years. According to a report by Infonetics Research, the market will increase from US$2.5 billion in 2002 to US$5.7 billion in 2006, representing growth of 131%.

Furthermore, the number of metro Ethernet equipment ports is expected to grow by 331%. The worldwide total is predicted to top 3.3 million by 2006, up from the 756,000 ports deployed in 2002.

“In the next 10 years, Ethernet will inexorably take over the metro,” says Michael Howard, principal analyst & co-founder, Infonetics Research.

“Of course, there will never be a wholesale change because of the SONET/SDH installed base, but every year Ethernet will account for a larger portion of metro CapEx. Between 2002 and 2006, Ethernet will make major inroads into metro telecom equipment spending, accumulating $18.9 billion,” he adds.

The metro Ethernet equipment market will be driven by customers demanding more Ethernet services, lower prices and the convenience of incremental bandwidth from service providers, says Infonetics Research.

Infonetics’ findings also revealed that Ethernet switches and routers account for 66% of the total metro Ethernet equipment revenue in 2002, while Ethernet over SONET/SDH makes up 21% of the total revenue.

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