SOURCE: Infonetics Research

Infonetics Research

July 28, 2011 15:28 ET

Infonetics Research: Service providers capitalize on Ethernet, IP MPLS VPN services; $78B market by 2015

CAMPBELL, CA--(Marketwire - Jul 28, 2011) - Market research firm Infonetics Research today released excerpts from its latest Ethernet and IP MPLS VPN Services report, which provides global and regional forecasts through 2015 and market and trends analysis for layer 2 and layer 3 IP MPLS VPN services, managed and unmanaged VPN services, wholesale Ethernet services, and retail Ethernet services, including Internet and WAN access, E-LINE, and E-LAN services.

"While retail business makes up the bulk of the Ethernet services market, revenue from wholesale Ethernet services (i.e., services sold by service providers to service providers) is growing faster than retail, at a 19% compound annual growth rate through 2015. Wholesale Ethernet is being purchased by carriers looking to bring down the skyrocketing cost of mobile backhaul, to increase the capacity of urban wireline connections getting crushed by data and video traffic, and to outfit planned LTE sites," notes Michael Howard, principal analyst at Infonetics Research.

REPORT HIGHLIGHTS

  • Service providers around the globe increased their Ethernet services revenue 20% in 2010 over 2009, and increased their IP MPLS VPN services revenue 12%, as companies continue to seek the efficiencies and cost savings these services afford
  • Combined, global revenue from Ethernet services and IP MPLS VPN services will top $78 billion by 2015
  • Asia Pacific makes up the biggest share of Ethernet services revenue, at more than 1/3 of the global total, and will continue as the leading region at least through 2015, led by China, India, and Southeast Asia (Vietnam, Philippines, Laos, Cambodia, Thailand)
  • The fastest-growing segment of wholesale Ethernet services is the over-1Gbps to 10Gbps speeds category, projected by Infonetics to grow at a 37% compound annual growth rate from 2010 to 2015, spurred by Ethernet for mobile backhaul transport
  • Market momentum in future years will be fueled by the growing use of cloud services, which will be delivered by many service providers over IP MPLS VPNs and Ethernet services

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RELATED RESEARCH

Download report prospectuses and highlights at http://www.infonetics.com/login (see CARRIER ROUTING, SWITCHING, AND ETHERNET).

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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