Published: March 20, 2009

Infonetics Research: 10G/40G equipment racks up $10.8 billion in 2008 with no signs of slowing down

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Market research firm Infonetics Research released the 2009 edition of its 10G/40G/100G Market Size and Forecast report. Report highlights follow.

"From our conversations with service providers around the globe, a majority are planning to invest in 40G until the 100G market arrives. Some are hoping to leapfrog straight to 100G, but we don't see that being a viable option because unrelenting traffic increases are already surpassing current capacities. More importantly, 100G pricing won't be what most are willing to pay until about 2012 or 2013. 100G Ethernet will be a long-lasting 'next big thing' when it arrives; in the meantime (and beyond), the 10G and 40G markets will continue to thrive," said Michael Howard, Infonetics Research co-founder and principal analyst.

Co-author of the report Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research, added, "Downturn or not, network traffic continues to increase and enterprises are responding by building out their networks. Case in point: the Ethernet switching market, where overall port shipments grew only 2% last year, but 10G port shipments grew 78%. The downturn might temper some of this growth, but the fundamental trend remains, and we expect enterprises to continue making investments in their network cores to avoid congestion."

REPORT HIGHLIGHTS

--  Annual shipments of 10 Gigabit (10G) and 40 Gigabit (40G) optical
    carrier and Ethernet ports on enterprise and service provider networking
    equipment jumped 86% in 2008, nearing 2 million, providing manufacturers
    $10.8 billion worldwide in 2008, up 45% from 2007
--  The vast majority of ports shipped in 2008 were 10G speed, although
    the burgeoning 40G market nearly tripled
--  The first pre-standard 100G port shipments are expected to begin by
    late 2009
--  Combined, worldwide sales of 10G, 40G, and 100G ports on networking
    equipment will be strong over the next 5 years, with enterprises and
    service providers expected to spend an accumulative $105 billion between
    2008 and 2013
--  Enterprises are pushing to deploy 1G to the desktop, which will
    require 10G Ethernet uplinks at the network edge to enable aggregation of
    traffic to the network core; this will result in sustained and steady
    growth over the coming years
--  The majority of service provider high speed ports are Ethernet based,
    growing in 2008 from 67% of total service provider high speed port
    shipments to 80% in 2013
--  In 2008 average revenue per 10G Ethernet port on service provider
    equipment is more than 10 times that of enterprise equipment

REPORT SYNOPSIS

Infonetics' 10G, 40G, 100G report tracks optical (OC192/STM64, etc.) and copper and fiber Ethernet ports, revenue, and revenue per port on various types of service provider and enterprise networking gear. Equipment tracked includes enterprise routers, Ethernet switches, application switches, service provider IP core and edge routers, carrier Ethernet switches (CES), WDM and SONET/SDH optical gear, PON OLTs, CMTSs, and multiservice ATM switches.

The report provides worldwide and regional market size and forecasts through 2013 and includes customizable pivot tables.

DOWNLOAD OR BUY THIS REPORT

To download this report if your organization has purchased it, or to download sample data from the report, log on to Infonetics' portal from www.infonetics.com.

For sales, please contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

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