A recent report from Infonetics Research (News - Alert) estimates that Ethernet access device (EAD) market will grow 81 percent between 2012 and 2016.
The key trend driving demand for Ethernet access devices is rapid service provider rollout and customer uptake of Ethernet connections and services, the Ethernet Access Devices report said.
The Ethernet access device market grew 17 percent in 2011 over 2010, according to the research agency. Ciena emerged as the global leader in Ethernet access device revenue market share in 2011. The company has overtaken ADVA (News - Alert), thanks to Ciena’s large mobile backhaul contracts, particularly in North America.
“The Ethernet access device market is growing nicely as a direct reflection of carrier Ethernet connections to businesses, backhaul from buildings and DSLAMs, and as a growing broadband and mobile backhaul application,” said Michael Howard (News - Alert), principal analyst for carrier networks and co-founder of Infonetics Research, in a statement.
Of the total EAD purchases, fiber EADs currently make up 70 percent while copper EADs (Ethernet over TDM bonded circuit, or EoTDM EADs, and Ethernet First Mile bonded copper, or EFM EADs), make up the remaining 30 percent.
The research agency says copper has an important, albeit limited, role for Ethernet services. Copper solutions are still the viable option for providers in places where the expenses of fiber is not justified. The change to fiber may be imminent, as many operators have already moved to fiber as part of their upgrade and mobile backhaul from TDM to Ethernet.
Actelis (News - Alert) leads the fast-growing EFM bonded copper EAD segment
Another trend noted by Infonetics Research in 2011 is the consolidation of EAD market with a good number of M&A deals. Most notable among them include Overture’s merger with Hatteras and TELCO Systems’ acquisition of ANDA’s assets.
Meanwhile a recent research from Dell' (News - Alert) Oro Group predicts that L2-3 Ethernet switch market will approach $28 billion in 2016, with future growth to be driven primarily by sales of Ethernet switches optimized for larger data center deployments. By 2016, 10 GbE in the Ethernet switch market is expected to comprise the majority of revenue.
Edited by Juliana Kenny