According to a new research study done by The Insight Research Corporation, between companies and consumers, more than $37 billion over the next five years is expected to be spent on carrier provided Ethernet services. Given virtually all major data providers already have Ethernet services available, it is expected that the market will grow at a compounded rate of almost 25 percent year-over-year. This will yield an increase from approximately $3.1 billion in 2010 to approximately $9.7 billion by 2015.
According to this study, US enterprises demand for Ethernet services has not wained even through the recent economic recession. The report also projects the surge in demand will peak by 2011, and revenue growth rates will hit 29 percent on a compounded yearly basis as the economy improves. These Ethernet services are being marketed under several names including Ethernet, Ethernet access, transparent LAN, native LAN, GigE, Gigabit Ethernet, Ethernet private line, Ethernet virtual private line, metro Ethernet, Layer 2 virtual private network, and virtual private LAN.
“The momentum behind retail sales of Ethernet services to the enterprise is being driven by the customer’s steadily increasing demand for data bandwidth and Ethernet’s real cost advantages in terms of providing flexible bandwidth and scalability that is superior to many competitive services,” says Robert Rosenberg, president of Insight Research. “The driving force behind wholesale Ethernet sales is improved interoperability among carriers, greater confidence in emerging and recently adopted standards, as well as shifts by more carriers to a more wholesale-friendly posture,” Rosenberg concluded.