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US Business Spending on Carrier Ethernet Services Tops $5.5 Billion in 2013, says Insight Research Corp.
Sep 04, 2013 (04:09 PM EDT)


MOUNTAIN LAKES, N.J., Sept. 4, 2013 /PRNewswire/ -- US enterprises are expected to spend more than $49 billion over the next five years on Ethernet services provided by carriers, according to a new market research study from The Insight Research Corporation. Ethernet metro area and wide area services are ubiquitous, available from all major data service providers, including cable/MSOs, who are building a formidable base around Ethernet services in the small to mid-sized business market. Industry revenue is expected to grow from nearly $5.5 billion in 2013 to over $13 billion by 2018.  

According to Insight Research's market analysis study, "US Carriers and Ethernet Services, 2013-2018," Ethernet's popularity is driven by its ability to meet growing bandwidth demands at lower cost and with greater flexibility than legacy TDM-based services. The large-scale migration of wireless backhaul cell sites from TDM to Ethernet continues to be a major factor in the next 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," says 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," Caulfield concluded.

The study examines Ethernet market spending and usage patterns by topology (E-line, E-LAN, and access), regional domain (metro, wide area, and access), retail/wholesale, and various bandwidth levels. In addition, the report covers the impact industry standards, such as MEF CE2.0, have on the market, as wells as carriers increased reliance on interoperability with other service providers.

An excerpt of US Carriers and Ethernet Services, 2013-2018, table of contents, and ordering information is available online at http://www.insight-corp.com/reports/ethernet13.asp . This 143-page report is available immediately for $4,695 in an electronic format (PDF) and can be ordered online.

Table V-1

Total US Public Ethernet Revenues, 2011-2018 ($Millions)



2011

2012

2013

2014

2015

2016

2017

2018

CAGR

Ethernet13









$3,891

$4,569

$5,533

$6,760

$8,084

$9,624

$11,405

$13,356

19.3%

Growth Rate









17.4%

21.1%

22.2%

19.6%

19.0%

18.5%

17.1%


5 yr cum = $49,229







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SOURCE Insight Research Corp.