Global Ethernet market will exceed £15bn in 2012, as carriers expand service

Ethernet, the networking technology that analysts predicted would die in the 1990s, will be a £15bn market by 2012, according to analysts at Ovum Research.

Ethernet, the networking technology that analysts predicted would die in the 1990s, will be a £15bn market by 2012, according to analysts at Ovum 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.




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