Market research firm Infonetics Research released excerpts from its latest Ethernet and IP MPLS VPN Services report. It provides global and regional forecasts through 2015 for layer 2 and layer 3 IP MPLS VPN services, managed and unmanaged VPN services, wholesale Ethernet services, and retail Ethernet services.

The report tells that service providers around the globe increased their Ethernet services revenue 20% in 2010 over 2009. They also increased their IP MPLS VPN services revenue 12%, as companies continue to seek the efficiencies and cost savings these services afford.

“While retail business makes up the bulk of the Ethernet services market, revenue from wholesale Ethernet services (i.e., services sold by service providers to service providers) is growing faster than retail, at a 19% compound annual growth rate through 2015. Wholesale Ethernet is being purchased by carriers looking to bring down the skyrocketing cost of mobile backhaul, to increase the capacity of urban wireline connections getting crushed by data and video traffic, and to outfit planned LTE sites,” notes Michael Howard, co-founder and principal analyst of Infonetics Research.

The report also forecasts that combined, global revenue from Ethernet services and IP MPLS VPN services will top $78 billion by 2015. Market momentum in future years will be fueled by the growing use of cloud services, which will be delivered by many service providers over IP MPLS VPNs and Ethernet services.

Asia Pacific makes up the biggest share of Ethernet services revenue, at more than 1/3 of the global total, and will continue as the leading region at least through 2015, led by China, India, and Southeast Asia (Vietnam, Philippines, Laos, Cambodia, Thailand).

Not surprisingly, the fastest-growing segment of wholesale Ethernet services is the over-1Gbps to 10Gbps speeds category, projected by Infonetics to grow at a 37% compound annual growth rate from 2010 to 2015, spurred by Ethernet for mobile backhaul transport.

Michael Howard is Co-founder and Principal Analyst, Carrier and Data Center Networks, Infonetics Research. He is recognized worldwide as one of the industry's leading experts in emerging markets, service provider network market trends, and user buying patterns. He currently focuses on IP edge and core routers, carrier Ethernet, IP/MPLS, VPLS, pseudowires, WDM-PON, WDM, ROADM, SONET/SDH optical, 40G-100G, IP NGN, and packet transport from customer CPE through the metro to the core and long haul. For more information, visit www.infonetics.com or twitter: michaelvhoward.

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