US Carrier Ethernet Services 2015 2019 Forecast
MARKET ANALYSIS
U.S. Carrier Ethernet Services 2015-2019 Forecast
Nav Chander
IDC OPINION
U.S. Ethernet services continue to be the most popular wide area network (WAN) enterprise communication technologies for many large enterprises and an increasing number of medium-sized businesses. Enterprises continue to migrate from packet services and private line services to Ethernet to support high-bandwidth applications like datacenter interconnection, disaster recovery, video services, and direct connections to public cloud services including metro area connectivity. Growth of
Ethernet access as an alternative to leased lines for access to other services, such as to the Internet or
IP VPNs, is also contributing to the demand for Ethernet connectivity, which remains robust. Key findings include the following:
Total Ethernet revenue is expected to grow from $7.0 billion in 2014 to $12.1 billion in 2019, a compound annual growth rate (CAGR) of 11.4%.
E-Line services make up the bulk of Ethernet services revenue at present, accounting for
41.3% of the market in 2014. An increasing amount of this segment is Ethernet virtual private line (EVPL) as more EVPL offerings are available.
The smaller E-LAN market accounted for 26.9% of the Ethernet services market, and 2015 growth for E-LAN revenue will be 14%, although growth will temper in later years and the
2014–2019 CAGR is expected to be 9.6%.
Ethernet access revenue, which accounts for 31.8% of the market in 2014, is experiencing higher growth because of a rapid migration of TDM footprint by CSPs to Ethernet access services, for both DIA and IP/MPLS VPN services. The Ethernet access market will maintain growth rates above 17% during the first two years of the forecast period, and the 2014–2019
CAGR is expected to be 15%.
Service providers should take a more solution-oriented approach to the WAN network services portfolio. Most organizations use Ethernet services in addition to IP VPN and other network
U.S. Carrier Ethernet Services 2015-2019 Forecast
Nav Chander
IDC OPINION
U.S. Ethernet services continue to be the most popular wide area network (WAN) enterprise communication technologies for many large enterprises and an increasing number of medium-sized businesses. Enterprises continue to migrate from packet services and private line services to Ethernet to support high-bandwidth applications like datacenter interconnection, disaster recovery, video services, and direct connections to public cloud services including metro area connectivity. Growth of
Ethernet access as an alternative to leased lines for access to other services, such as to the Internet or
IP VPNs, is also contributing to the demand for Ethernet connectivity, which remains robust. Key findings include the following:
Total Ethernet revenue is expected to grow from $7.0 billion in 2014 to $12.1 billion in 2019, a compound annual growth rate (CAGR) of 11.4%.
E-Line services make up the bulk of Ethernet services revenue at present, accounting for
41.3% of the market in 2014. An increasing amount of this segment is Ethernet virtual private line (EVPL) as more EVPL offerings are available.
The smaller E-LAN market accounted for 26.9% of the Ethernet services market, and 2015 growth for E-LAN revenue will be 14%, although growth will temper in later years and the
2014–2019 CAGR is expected to be 9.6%.
Ethernet access revenue, which accounts for 31.8% of the market in 2014, is experiencing higher growth because of a rapid migration of TDM footprint by CSPs to Ethernet access services, for both DIA and IP/MPLS VPN services. The Ethernet access market will maintain growth rates above 17% during the first two years of the forecast period, and the 2014–2019
CAGR is expected to be 15%.
Service providers should take a more solution-oriented approach to the WAN network services portfolio. Most organizations use Ethernet services in addition to IP VPN and other network