Ethernet service revenue, including retail and wholesale, increased 13% worldwide in 2012, and is expected to grow to $56 billion by 2017, according to a new report from Infonetics.
Meanwhile, layer 2 and layer 3 IP MPLS VPN service revenue grew 8% in 2012, and is also on a healthy growth trajectory.
With employees increasingly accessing corporate networks from personal devices for both business and personal use for apps like Facebook and private email, organizations are turning to less expensive IP and Ethernet services to cost-effectively deal with surging network traffic,” says Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. “The BYOD trend is adding to the already-pervasive use of networks based on Ethernet and IP/MPLS from the home, office and road, and will help drive a cumulative $374 billion to be spent on Ethernet and IP/MPLS VPN services from 2013 to 2017.”
Some other highlights of the report:
- Mobile backhaul transport’s transition to IP/Ethernet continues: today over 94% of mobile backhaul spending is on IP/Ethernet equipment.
- The fastest growing Ethernet service revenue opportunities are in the >1G–100G segments.
- Asia Pacific and Latin America are expected to make up the largest share of IP MPLS VPN services revenue through 2017, due to population and GDP growth, and increasing use of broadband and mobile in South America.
