Applications, such as business services and IPTV infrastructure, will climb continuously during 2010; however, the migration to next-generation backhaul equipment and convergence in the metro network fuels the real growth.
In the past couple of years, and especially in 2009, vendors focused on incorporating synchronization in their carrier Ethernet/IP MPLS solution to address the mobile backhaul market. This, along with carrier Ethernet operation, administration and maintenance (OAM), end-to-end management solutions and service assurance features, has enabled rapid adoption of carrier Ethernet for mobile backhaul.
New analysis from Frost & Sullivan (carriernetworks.frost.com), IP/CESR Market Update, finds that the market earned revenues of $14.0 billion in 2009.
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"Ethernet also offers advantages such as modular upgrade of bandwidth which allows service providers to align costs with growth," says Frost & Sullivan Research Analyst Prayerna Raina. "With significant progress being made in Ethernet synchronization standards and implementation of the same in products, 2011 will be the year for take off for Ethernet and mobile backhaul, delayed mainly by the macroeconomic conditions and solidification of service provider migration strategy."
The deployments are exceedingly complex and service providers are trying to address multiple goals simultaneously, such as capital and operational expenditure reduction and new service creation to generate revenue. In terms of the competitive landscape, the IP/CESR market is concentrated with the top three vendors constituting more than fifty percent of market share.
"In regions such as Asia Pacific, this aspect is magnified by the presence of strong regional vendors such as Huawei," says Raina. "It is vital for vendors to enhance portfolio depth especially relating to mobile backhaul and convergence of networks."
Continued mobile subscriber growth, mobile broadband, and upgrade to 4G networks will sustain market momentum. Vendors in the Ethernet 2.0 market can capitalize on the opportunities in the rapidly growing applications and emerging markets by proactively addressing service provider requirements regarding convergence and mobile backhaul. This will leverage existing and new global or regional partnerships that provide breadth and/or depth to the product portfolio.
IP/CESR Market Update is part of the Communications Infrastructure & Convergence Growth Partnership Service program, which also includes research in the following markets: World Carrier Switch and Router Markets, World Mobile Backhaul Infrastructure Markets, and World Carrier Ethernet Switch/Router Markets. All research services included in subscriptions provide detailed market opportunities and industry trends were evaluated following extensive interviews with market participants.
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