Growth in data/video to boost European market for Ethernet test equipment!

Commoditisation of 1GbE prices threatens to stifle growth of market revenues, which are estimated to reach €154.3 million in 2015

The gigabit Ethernet (GbE) market is growing rapidly, driven by maturing technologies and business models, and increasing market awareness of both the availability of such services and their specific benefits. The hype around cloud technologies has also contributed to the growing demand for GbE.

New analysis from Frost & Sullivan, European Gigabit Ethernet Test Equipment Market, finds that the market earned revenues of €108.3 million in 2010 and estimates this to reach €154.3 million in 2015. The research covers 1GbE, 10GbE and 40/100 GbE test equipment.

“Bandwidth growth is expected to be pushed by the increasing mobile and Internet bandwidth usage—which includes traffic generated by videos, gaming, and peer-to-peer applications, triple-play applications, inter-data centre traffic, and traffic between data centres and enterprises,” notes Frost & Sullivan Industry Analyst Prathima Bommakanti. “The evolution of access network to gigabit Ethernet is expected to drive the growth of10Gb Ethernet in the metro network.”

The market is being driven by converged data and applications such as data, voice, audio, gaming, and social networking sites. According to the IEEE P802.3ba specification, 100G and 40G are well aligned with the projected need for more network bandwidth because of multiplay deployments

“A positive trend for the market will be the increased need for monitoring and security that will impel the need for network analysis and hence gigabit Ethernet test equipment,” adds Bommakanti.

Despite being far from a mature market, commoditisation of 1GbE prices continues to erode overall revenue per port. This will prove a significant challenge to market prospects.

“Time-to-market will emerge a critical aspect of product differentiation, as over time the competition starts offering comparable features. As products get standardised, they enable interoperability while simultaneously creating a competitive environment.”

This is triggering the need for high investments in R&D. Vendors are continuing to invest in R&D to stay ahead of their competitors, even while keeping track of service providers’ infrastructure upgrades and new service enablement.

Factors like price, geographic coverage, customer service and multi-functional product capabilities will also play an important role in ensuring competitive success.

One Response to Growth in data/video to boost European market for Ethernet test equipment!

  1. Walt Boyes says:

    Yes, that’s all well and good, but the biggest growth in devices are wireless— and there is the choke point. We are just barely getting enough wireless bandwidth to sometimes stream video into our houses…at industrial sites, there often isn’t enough wireless bandwidth NOW let alone in the future.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: