Ethernet on the up
Research firm the Dell’Oro Group has predicted that Ethernet sales will go through the roof in the next few years. The company predicts that Ethernet switch market revenues will set a record in 2005, while 10 Gigabit port shipments will more than double in each of the next three years.
The Dell’Oro Group has predicted that Ethernet switch market revenues will set a record in 2005, while 10 Gigabit port shipments will more than double in each of the next three years.
Ethernet switch market revenues in 2005 are forecasted to exceed revenue levels that last peaked in 2000 and continue to grow steadily over the next five years.
The report also indicates that one of the fastest growing segments for the Ethernet switch market will be 10 Gigabit Ethernet switch ports, which are expected to more than double in 2005, 2006, and 2007.
“As businesses continue to deploy Gigabit Ethernet in their wiring closets, they will need to aggregate that speed to the core of the network,” says Seamus Crehan, director of Ethernet Switch Research for Dell’Oro Group.
“We anticipate that the combination of significant declines in the price per 10 Gigabit Ethernet port and the widespread adoption of Gigabit Ethernet — both in the enterprise and service provider networks — should result in very strong growth for 10 Gigabit Ethernet switches,” adds Crehan
The research firm also forecasts that wireless LAN (WLAN) equipment revenues are poised to grow 13% in 2005 to US$2.6 billion, and that the market will continue to grow through 2009 to US$4.3 billion, a compounded annual growth rate (CAGR) of 13%.
“The architecture of enterprise WLAN networks is changing to facilitate larger installations and to alleviate IT managers’ security and management concerns,” says Greg Collins, Senior Director of Wireless LAN Research at Dell’Oro Group.
“The centralised deployment and management solution offered by dependent access points and switch and appliance architecture will continue to become an increasingly popular method for enabling centralised management and security functions within corporate WLAN networks,” he adds.
According to the Dell’Oro Group report, the SOHO market for standalone WLAN equipment will decline; however, this decline will be more than compensated for by sales of WLAN embedded in broadband customer premises equipment (CPEs). Over time, the overall growth of the SOHO WLAN market will shift to another class of products.