Ethernet, the networking technology
that analysts predicted would die in the 1990s, will be a £15bn
market by 2012, according to analysts atOvum Research.
The current 20% annual growth of the technology is driven by
expanding telecoms carrier Ethernet offerings, says Ian Redpath,
senior analyst and co-author of Ovum's latest forecast
analysis.
Most of this growth will come from Japan and America, as those
countries invest money to extend their technological lead over the
UK. Japan and US will account for nearly 59% of cumulative global
revenues by 2012.
"Japan is exhibiting mature market conditions, while many other
countries are still moving through early adopter and 'land grab'
market phases," said Redpath.
In the UK, cable companies are exhibiting solid growth. Fibre is
still the physical access method of choice with increased building
connectivity ongoing. Ethernet over copper and microwave are now
also access options.
The key growth driver, in the UK is replacment of pre-existing
legacy service contracts. There are more urgent drivers in faster
growing foreign markets, however, "New entrant Ethernet service
providers have been catalysts in starting market growth," said
Redpath.