Next-generation networks are becoming increasingly prevalent in the business world, telecom and networking domains are rapidly advancing, and the demand for mobile broadband and wireless technology is leading to a need for higher bandwidth thresholds. To put it simply, the internet is evolving, and Ethernet networks are going to play a big role in this period of change. This has prompted significant growth in the Global Carrier Ethernet Switch and Router market, and analysts at TechNavio expect this upward trend to continue through 2012-2016 at a CAGR of 12.86 percent.

Presently, the market for Ethernet solutions has the following driving forces working in its favour:

  • Cost Efficiency
  • High Scalability of Ethernet Equipment
  • Improved Network Consistency
  • Increase in Network Traffic
  • Improved Reliability of Ethernet Equipment

Despite the diverse advantages of Ethernet networking however, many vendors are having difficulty surmounting the current dominance of DSL technology. Although Ethernet technology is widely used in fiber networks, the fiber-to-building connectivity is limited, and it is used in less than 15 percent of the MANs used by enterprises. In consequence, DSL technology is the network of choice for many residential users and SMEs.

In order to remedy this problem, service providers need to deliver a universal Ethernet service and reach a bigger customer base by offering improved infrastructure and solutions. In the meantime, the following two trends have the potential to offset this market challenge:

#1. Increase in Adoption of Carrier Ethernet Outside Metros
#2. Increase in Network Convergence Infrastructures

Both of these trends have the power to drastically improve the scalability, reliability, and performance of Ethernet networks; all three of which are the fundamental buying criteria of any web-oriented market. If vendors are able to adequately provide these consumer demands, the Global Carrier Ethernet Switch and Router market should have no problems re-asserting itself as the go-to network solution.

For more information, view our 2012-2016 report on the Global Carrier Ethernet Switch and Router Market.

Other Related Reports:
Global Ethernet Switch Market 2011-2015
Global Carrier Ethernet Equipment Market 2012-2016
Global Ethernet Access Device Market 2012-2016
Global Next-generation Network Routing Solution Market 2012-2016