North America Carrier Ethernet Switch/Router Market Update

North America Carrier Ethernet Switch/Router Market Update

Market Overview

Mobile Backhaul and Business Services Uplift Prospects for the North America Carrier Ethernet Switch/Router Market

Cloud-based Service and Machine-to-machine Applications Ensure Growth over the Long Haul

The North American carrier Ethernet switch/router (CESR) market has been growing at a compound annual growth rate (CAGR) of 29.3 percent since 2010. CESR devices that were initially driven by business services are now finding traction in the mobile backhaul and triple-play infrastructure markets as well. More importantly, new applications such as cloud-based services and machine-to-machine applications are expected to be pivotal to the long-term growth of this market. Exponential growth in data/video drives revenue through the deployment of scalable solutions. Apart from cost and scalability benefits, applications provide the greatest momentum to the CESR market and unleash new revenue opportunities for service providers and, consequently, vendors. "Vendors have successfully evolved Ethernet technology through standards to make it carrier-grade technology," notes the analyst of this research service. "However, to maintain growth in this market, applications that go beyond connectivity to the Internet are critical to keep the revenue and technology growing; synchronization for mobile backhaul serves as a case in point."

Sophistication of technology and consolidation has led to a very competitive environment in the carrier Ethernet switch/router market. Though the carrier Ethernet demarc segment is fragmented, it is also characterized by a fiercely competitive environment. This is because this market offers opportunities for vendors to increase their market share by focusing on innovative applications, emerging regions, and network convergence. The network upgrades at present are not capacity upgrades alone, but network architecture transformations that involve unprecedented technology challenges, bandwidth growth, and varying usage patterns.

Vendors in this domain are continuing to invest in R&D, focusing on carrier Ethernet performance as well as new features. They are striving to stay ahead of service provider plans for infrastructure upgrades and new service enablement. Investments in packet optical, video quality of experience, synchronization, performance monitoring, and management systems are just a few examples of the different areas in which vendors have tried to differentiate their solutions. Time-to-market is a critical aspect of product differentiation, as over time the competition starts offering comparable features. As products get standardized, they enable interoperability, turning competition up a few notches. "Besides maintaining product differentiation, building a diverse customer segment base in an increasingly competitive CESR market is critical for vendors to increase market share," concludes the analyst. "Vendors also need to proactively diversify their customer base to include cable operators, Tier-2/Tier-3 operators, and utilities in North America."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Carrier Ethernet demarc
• Carrier Ethernet access
• Carrier Ethernet aggregation
• Carrier Ethernet service edge

• 1. Executive Summary
• 2. Introduction
• 3. Market Engineering Measurements
• 4. Factors Impacting the Market
• 5. Market Forecasts - Total Market
• 6. Market Forecasts - Carrier Ethernet Demarc
• 7. Market Forecasts - Carrier Ethernet Access
• 8. Market Forecasts - Carrier Ethernet Aggregation
• 9. Market Forecasts - Carrier Ethernet Service Edge
• 10. Competitive Structure
• 11. Market Share Analysis by Revenues
• 12. About Frost & Sullivan
• List of Figures
  • Total Carrier Ethernet Switch/Router Market: Total Market and Segment Revenue Overview (North America), 2010 and 2017
  • Total Carrier Ethernet Switch/Router Market: Impact of Top Industry Challenges (North America), 2011-2017
  • Total Carrier Ethernet Switch/Router Market: Market Drivers Ranked in the Order of Impact (North America), 2011-2017
  • Total Carrier Ethernet Switch/Router Market: Market Restraints Ranked in the Order of Impact (North America), 2011-2017
  • Carrier Ethernet Demarc Market: Revenue and Port Shipment Forecast for Carrier Ethernet in the First Mile Over Copper Segment (North America), 2010-2017
  • Total Carrier Ethernet Switch/Router Market: Competitive Structure (North America), 2010
• List of Charts
  • Total Carrier Ethernet Switch/Router Market: Market Engineering Measurements (North America), 2010
  • Total Carrier Ethernet Switch/Router Market: Technology Adoption Bell Curve (North America), 2010 and 2017
  • Total Carrier Ethernet Switch/Router Market: North America Revenue versus World Revenue (North America), 2010 and 2017
  • Total Carrier Ethernet Switch/Router Market: Revenue Forecast (North America), 2008-2017
  • Total Carrier Ethernet Switch/Router Market: Percent of Revenues by Product Segment (North America), 2008-2017
  • Total Carrier Ethernet Switch/Router Market: Percent of Revenues by Application Segment (North America), 2010 and 2017
  • Total Carrier Ethernet Switch/Router Market: Percent of Port Shipment by Product Segment (North America), 2010 and 2017
  • Carrier Ethernet Demarc Market: Revenue Forecast (North America), 2008-2017
  • Carrier Ethernet Demarc Market: Percent of Revenues by Port Interface (North America), 2010-2017
  • Carrier Ethernet Demarc Market: Revenue Forecast by Port Interface (North America), 2010-2017
  • Carrier Ethernet Demarc Market: Port Interface Shipment Forecast (North America), 2010-2017
  • Carrier Ethernet Access Market: Revenue Forecast (North America), 2008-2017
  • Carrier Ethernet Access Market: Percent of Revenues by Port Interface (North America), 2010-2017
  • Carrier Ethernet Access Market: Revenue Forecast by Port Interface (North America), 2010-2017
  • Carrier Ethernet Access Market: Port Interface Shipment Forecast (North America), 2010-2017
  • Carrier Ethernet Aggregation Market: Revenue Forecast (North America), 2008-2017
  • Carrier Ethernet Aggregation Market: Percent of Revenues by Port Interface (North America), 2010-2017
  • Carrier Ethernet Aggregation Market: Revenue Forecast by Port Interface (North America), 2010-2017
  • Carrier Ethernet Aggregation Market: Port Interface Shipment Forecast (North America), 2010-2017
  • Carrier Ethernet Service Edge Market: Revenue Forecast (North America), 2008-2017
  • Carrier Ethernet Service Edge Market: Percent of Revenues by Port Interface (North America), 2010-2017
  • Carrier Ethernet Service Edge Market: Revenue Forecast by Port Interface (North America), 2010-2017
  • Carrier Ethernet Service Edge Market: Port Interface Shipment Forecast (North America), 2010-2017
  • Carrier Ethernet Switch/Router Market: Market Share in Carrier Ethernet Demarc Segment (North America), 2009 and 2010
  • Carrier Ethernet Switch/Router Market: Market Share in Carrier Ethernet Access Segment (North America), 2009 and 2010
  • Carrier Ethernet Switch/Router Market: Market Share in Carrier Ethernet Aggregation Segment (North America), 2009 and 2010
  • Carrier Ethernet Switch/Router Market: Market Share in Carrier Ethernet Service Edge Segment (North America), 2009 and 2010