Ethernet Bandwidth Surges on Migration to Gigabit Services

  • Vertical Systems Group
BOSTON, MA – Vertical Systems Group’s latest ENS (Emerging Networks Service) research for the U.S. retail Carrier Ethernet market shows solid growth through 2023, driven by customer migration to higher bandwidth services that ensure reliable, dedicated network connectivity. Gigabit speed services are boosting growth in bandwidth, ports and revenue, despite declines in average pricing.
 
 
Research Highlights
 
  • Total bandwidth for Ethernet ports installed at U.S. customer sites is projected to more than triple during the five-year projection period to 2023.
  • Port growth for both the 10+ Gbps and 1 Gbps segments is projected at double digit CAGRs.
  • 100 Mbps is the most widely installed port speed.
  • Revenue growth is lagging port growth as a result of ongoing price compression, as well as competition in major markets.
  • Average pricing is declining across every Ethernet service and speed combination as billed to the customer (i.e., ‘street price’ net of discounts).
  • Ethernet DIA has the highest revenue growth outlook through 2023.

 

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