Ethernet Spending to Top $49 Billion Over Next Five Years

Over the next five years, U.S. enterprises are expected to spend more than $49 billion on Ethernet services provided by carriers.

That’s one finding in a new report from Insight Research, which says industry revenue will grow from nearly $5.5 billion in 2013 to more than $13 billion by 2018.

Insight’s study, “US Carriers and Ethernet Services, 2013-2018,” shows that Ethernet’s popularity relies on two things: cheaply meeting growing bandwidth demands and the ability to be more flexible than legacy TDM-based services. The large-scale conversion of wireless backhaul cell sites from TDM to Ethernet will be a major factor over the coming five years as carriers complete their 4G LTE deployments.

“Ethernet services in the small to mid-sized business market is the fastest growing segment of this market, while wireless backhaul still commands the top segment,” said Fran Caulfield, director of Research at Insight. “Over the five-year forecast period we project a compounded annual revenue growth rate of 19 percent, with the highest growth levels in the next two years.”

The study is based on Ethernet market spending and usage patterns by topology (E-line, E-LAN and access), regional domain (metro, wide area, access), retail/wholesale and various bandwidth levels. The report also reviews the effects that impact industry standards have on the market.   

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