Product Type: Market Research Report
Published by: Frost & Sullivan
Published: April 2007
Product Code: R1-5781Description The Frost & Sullivan research service titled World Carrier Switch and Router Markets provides insights into the current trends in this market on a global basis, the factors influencing the current growth in the market, and the market segments that are contributing the most revenues to the total market. The research also highlights the potential of high growth segments such as Carrier Ethernet, which is further divided into four sub-segments. In addition, two emerging segments, Demarc and Ethernet in the First Mile, are also discussed. In this research, Frost & Sullivan's expert analysts examine the following markets: Internet Exchange, Service Provider Core, Multiservice Edge Router, Ethernet Service Edge, Broadband Aggregation (BRAS), Internet Data Center/Colocation/Hosting, ATM switch, Ethernet Aggregation, Ethernet Access, and Demarcation/Network Termination Device.
Market Overview
Core Routers and Carrier Ethernet Segments Drive Market Growth
The global carrier switch and router market raked in almost $10 billion in revenues during 2006, and is poised for solid growth over the next three years. The Service Provider Core Routers and Carrier Ethernet segments drove a sizeable proportion of the growth. The fast-paced adoption of Carrier Ethernet has in turn led to the emergence of two segments, namely Demarc devices and Ethernet in the First Mile equipment. The momentum stems from service providers needing to deploy next-generation infrastructure that cost-effectively delivers high-bandwidth services to the business, consumer, and wholesale markets. Moreover, service providers need to lower the capital expenditure/operational expenditure (CAPEX/OPEX) even as they increase average revenue per user (ARPU), and these factors are influencing the way network elements are evolving. For instance, the broadband remote access server, which is a specialized router, is increasingly being viewed as a set of features rather than a stand-alone device.
Despite the strong numbers, CAPEX realities and carriers’ inexperience in new technologies and architectures are affecting equipment deployment. "Post the telecom downturn, carriers' approach to CAPEX has changed considerably, in that the carriers want to and need to offer new and differentiated services, but are reluctant to aggressively increase the CAPEX to achieve ARPU goals," notes the analyst of this research service. "Today, vendors could easily spend months with carriers defining the business case for, say, a Metro Ethernet service as well as designing the optimum network architecture."
Continued Increase in Bandwidth Usage by Enterprises and Consumers Ensures Future Growth
The second generation of web-based services and increase in the traffic generated at the consumer end due to peer-to-peer applications such as sharing of media files and online gaming have clearly altered the traffic pattern and significantly increased the amount of traffic being sent across the Internet. Internet Protocol Television (IPTV) and its different flavors (broadcast, unicast) are also expected to very strongly drive the consumer traffic. Additionally, connectivity to remote sites and high-speed Internet access are increasing enterprise traffic.
Among the market segments, the Carrier Ethernet switch/router equipment market accounted for the largest share of the total carrier switch and router market in 2006, followed by the Service Provider Core segment. "Going forward, strategic partnerships could be a key factor in the global carrier switch and router markets, especially with carriers, anticipating a certain level of demand, deploying networks with which they may have little experience," says the analyst. "Thus, service providers are looking for strong technical and commercial partners among equipment vendors to help them define the architecture and business case and, hopefully, generate customers."Table of Contents - 1. Market Introduction and Overview
- 1. Market Overview
- 1. Executive Summary
- 2. Scope of Study
- 1. Market Definitions
- 2. Market Dynamics
- 1. Market Engineering Measurements
- 1. Market Engineering Measurements
- 2. Factors Impacting Market
- 1. Industry Challenges
- 2. Market Drivers
- a. Continued Increase in Bandwidth Usage by Enterprises and Consumers
- b. Carriers Required to Optimize CAPEX/OPEX While Offering Differentiated Services
- c. Optimization of RAN Aggregation Cost
- d. Lack of Fiber in the First Mile
- e. Convergence of Business and Residential Networks
- f. Growth Opportunities across Geographic Regions
- g. Standardization Efforts across Many Technologies
- h. Carriers Continue to Support Legacy Services
- i. Channel Partnerships among the Carrier Switch/Router Vendors
- j. Government Supported Opportunities in the U.S.A. and Deployment by Utilities and Municipalities Worldwide
- 3. Market Restraints
- a. High Enthusiasm for Carrier Ethernet is Offset by CAPEX Realities
- b. Satisfying Stringent Vendor Selection Criteria
- c. Long Sales Cycle and Limited Opportunities in a Year to Sell into a Carrier
- d. Budgetary Constraints and Limited Footprint
- e. High Barrier to Entry and Expansion
- f. Developing the Business Case for Carrier Ethernet Service and High Bandwidth Applications
- g. Mergers & Acquisitions among Service Providers
- h. Country Specific Regulations Slow Down Deployments
- 3. Market Analysis
- 1. Summary
- 2. Market Segment Analysis - Internet Exchange and Service Provide Core
- 3. Market Segment Analysis - Multiservice Edge Router
- 4. Market Segment Analysis - Broadband Aggregation (BRAS)
- 5. Market Segment Analysis - Ethernet Aggregation
- 6. Market Segment Analysis - Ethernet Access
- 7. Market Segment Analysis - Demarc
- 8. Market Segment Analysis - Internet Data Center/Colocation/Hosting
- 9. Market Segment Analysis - Ethernet in the First Mile
- 10. Market Segment Analysis - ATM switch (Multiservice Edge and WAN switch)
- 11. Competitive Structure
- 3. Market Forecast and Market Share Analysis
- 1. Market Forecast and Revenues
- 1. Revenue Forecast for the Total Market
- 2. Revenue Forecast by Market Segment
- 3. Revenue Forecast by Region
- 2. Market Share and Revenue Analysis
- 1. Market Revenue Analysis - Percent of Revenues by Market Segment
- 2. Market Revenue Analysis - Percent of Total Market Revenues by Geographic Region
- 3. Market Share Analysis - Total Market Share
- 4. Market Share Analysis by Market Segments - Service Provider Core
- 5. Market Share Analysis by Market Segments - Multiservice Edge Router
- 6. Market Share Analysis by Market Segments - Ethernet Services Edge
- 7. Market Share Analysis by Market Segments - Broadband Aggregation (BRAS)
- 8. Market Share Analysis by Market Segments - Access
- 9. Market Share Analysis by Market Segments - Aggregation
- 10. Market Share Analysis by Market Segments - Demarc
- 11. Market Share Analysis by Market Segments - Data Center/Colocation/Hosting
- 12. Market Share Analysis by Market Segments - Internet Exchange
- 13. Market Share Analysis by Market Segments - ATM Switch
- 14. Market Share Analysis by Market Segments - Carrier Ethernet Switch & Router
- 15. Market Share Analysis by Market Segments - Ethernet in the First Mile over Copper
- 4. Vendor Profiles
- 1. Vendor Profiles
- 1. Actelis Networks
- 2. ADTRAN
- 3. ADVA Optical Networking
- 4. Aktino
- 5. Alcatel-Lucent
- 6. ANDA Networks
- 7. Atrica Inc.
- 8. Avici Systems
- 9. Ceterus Networks
- 10. Ciena
- 11. Cisco Systems
- 12. ECI Telecom
- 13. Ericsson
- 14. Extreme Networks
- 15. Force10 Networks
- 16. Foundry Networks
- 17. Hammerhead Systems
- 18. Hatteras Networks
- 19. Huawei Technologies
- 20. Juniper Networks
- 21. MRV Communications Inc.
- 22. Nortel
- 23. RAD Data Communications Networks
- 24. Redback Networks (Ericsson)
- 25. Seabridge Networks (Nokia-Siemens Networks)
- 26. Telco Systems
- 27. Tellabs Inc.
- 28. World Wide Packets
- 29. Zhone Technologies
- 30. ZTE Corporation
- List of Figures
-
- Chapter 1
- Carrier Switches and Routers Market: Market Segmentation (World), 2006
- Chapter 2
- Carrier Switches and Routers Market: Market Drivers Ranked in Order of Impact (World), 2007-2013
- Carrier Switches and Routers Market: Market Restraints Ranked in Order of Impact (World), 2007-2013
- Carrier Switches and Routers Market: Impact of Top Industry Challenges (World), 2007-2013
- Carrier Switches and Routers Market: Competitive Structure (World), 2006
- Chapter 3
- Carrier Switches and Routers Market: Revenue Forecasts (World), 2006-2013
- Carrier Switches and Routers Market: Segment Revenues by Geographic Region (World), 2006
- Chapter 4
- Carrier Switches and Routers Market: Actelis Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: ADTRAN Product Positioning (World), 2006
- Carrier Switches and Routers Market: ADVA Optical Networking Product Positioning (World), 2006
- Carrier Switches and Routers Market: Aktino Product Positioning (World), 2006
- Carrier Switches and Routers Market: Alcatel-Lucent Product Positioning (World), 2006
- Carrier Switches and Routers Market: ANDA Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: Atrica Inc., Product Positioning (World), 2006
- Carrier Switches and Routers Market: Avici Systems Product Positioning (World), 2006
- Carrier Switches and Routers Market: Ceterus Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: Ciena Product Positioning (World), 2006
- Carrier Switches and Routers Market: Cisco Systems, Inc. Product Positioning (World), 2006
- Carrier Switches and Routers Market: ECI Telecom Product Positioning (World), 2006
- Carrier Switches and Routers Market: Ericsson Product Positioning (World), 2006
- Carrier Switches and Routers Market: Extreme Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: Force10 Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: Foundry Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: Hammerhead Systems Product Positioning (World), 2006
- Carrier Switches and Routers Market: Hatteras Networks Product Positioning (World), 2006
- Carrier Switches and Routers Market: Huawei Product Positioning (World), 2006
- Carrier Switches and Routers Market: Juniper Product Positioning (World), 2006
- Carrier Switches and Routers Market: MRV Communications, Inc. Product Positioning (World), 2006
- Carrier Switches and Routers Market: Nortel Product Positioning (World), 2006
- Carrier Switches and Routers Market: RAD Data Communications Network Product Positioning (World), 2006
- Carrier Switches and Routers Market: Redback Networks (Ericsson) Product Positioning (World), 2006
- Carrier Switches and Routers Market: Seabridge Networks (Nokia-Siemens Networks) Product Positioning (World), 2006
- Carrier Switches and Routers Market: Telco Systems Product Positioning (World), 2006
- Carrier Switches and Routers Market: Tellabs Product Positioning (World), 2006
- Carrier Switches and Routers Market: World Wide Packets Product Positioning (World), 2006
- Carrier Switches and Routers Market: Zhone Technologies Product Positioning (World), 2006
- Carrier Switches and Routers Market: ZTE Corporation Product Positioning (World), 2006
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