CEAP Market Powers Through Storm

9:30 AM -- The bad economic news out there is inescapable and stretches its ugly shadow over much of the world, but the Carrier Ethernet market continues to overcome macro-level barriers to progress and deliver growth and opportunity for industry players. One of the most exciting areas of growth is the access segment of the Carrier Ethernet market. This sector -- which includes about a dozen major types of technologies offered by more than 70 companies -- will be a major topic of discussion at the upcoming Ethernet Expo Americas on November 2 and 3.

Heavy Reading has carved out a fast-growing portion of the large Ethernet access solutions market that we call the Carrier Ethernet Access Platform (CEAP) market. The CEAP market consists of several sub-segments: (1) Ethernet over fiber switch/intelligent demarcation platforms; (2) Ethernet over bonded copper pair platforms; and (3) Ethernet over TDM access circuit platforms. The products are being deployed to support Ethernet business services, Ethernet wholesale services, mobile backhaul applications, and consumer triple-play services.

The global CEAP market grew an impressive 35 percent from $964 million in the rolling four-quarter period ending in second quarter 2009 to $1.3 billion in the rolling four-quarter period ending in the second quarter of 2010, according to Heavy Reading’s latest CEAP Tracker. I believe the market has the potential to increase at a combined annual growth rate (CAGR)of 18 percent between 2009 and 2014, reaching nearly $2.4 billion. It could be much greater if the continued debasement of fiat currencies worldwide spurs significant price inflation during the forecast period.

On a quarterly basis, the global CEAP market was 47 percent higher in the second quarter of 2010 than in the same quarter in 2009. The market was up 5 percent sequentially versus the first quarter of 2010. E-o-fiber platform sales grew most rapidly on a sequential basis in the second quarter of 2010, followed by E-o-bonded copper pair platforms, and then E-o-TDM access platforms. E-o-fiber platforms accounted for about three-fourths of the CEAP market in that quarter.

We estimate Ciena held a 2-point lead in the global CEAP market in both the second quarter of 2010 and the rolling four-quarter period ending in June 2010. We estimate Cisco was No. 2 and Huawei was No. 3 on a quarterly basis in the second quarter of 2010, but Huawei edged Cisco for the No. 2 slot on a rolling four-quarter basis.

The top three leaders in each of the CEAP market sub-segments during the second quarter of 2010 include the following:

  • E-o-fiber switch/intelligent demarcation platform: Ciena, No. 1; Cisco, No. 2; Huawei, No. 3.

  • E-o-bonded copper pair platform: Hatteras and Adtran, tied for No. 1; Actelis No. 3.

  • E-o-TDM access circuit platform: Overture, No. 1; RAD, No. 2; ANDA, No. 3

Many of the leading CEAP suppliers will be highlighting the latest upgrades in their portfolios during Ethernet Expo. I hope to see you at the show.

— Stan "EtherMan" Hubbard, Senior Analyst, Heavy Reading, and Chairman, Ethernet Expo Americas 2010

Interested in learning more on this topic? Then come to Ethernet Americas 2010, Light Reading's eleventh Ethernet event, designed to meet the information needs of service providers and enterprises that are working out what next-generation services and applications to deploy, and what infrastructures will help them do this in the most cost-effective and productive manner. To be staged in New York, Nov. 2 & 3, admission is free for attendees meeting our prequalification criteria. For more information, or to register, click here.

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