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EENY 2009: Gear Market Set for 2010 Rebound

Ray Le Maistre
11/3/2009

NEW YORK -- ETHERNET EXPO 2009 -- After the sector shrank during recession-hit 2009, the global market for Carrier Ethernet switch router (CESR) equipment will grow again in 2010, Heavy Reading senior analyst Stan Hubbard told a packed auditorium of hundreds of carrier and vendor executives here this morning at the Hilton Hotel.

The value of the CESR sector is set to dip by about 20 percent this year and to be worth about $1.8 billion, but it's expected to grow by more than 9 percent in 2010 and be worth nearly $2 billion, according to Hubbard's latest market forecasts. He anticipates the sector will continue on a growth path and be worth $2.8 billion in 2013, with Asia/Pacific accounting for about 37 percent of that total.

While that might seem like a sizable worldwide market, the spoils for some vendors are likely to be limited. Hubbard said there are about 22 vendors, including big hitters such as Alcatel-Lucent (NYSE: ALU), Cisco Systems Inc. (Nasdaq: CSCO), Ericsson AB (Nasdaq: ERIC), Huawei Technologies Co. Ltd. , Juniper Networks Inc. (NYSE: JNPR), and Nokia Networks , that have developed their own platforms to sell to the carrier community. "There's a lot of competition in that space -- you really need to stay on your toes in that market," he noted.

The Ethernet access equipment market hasn't suffered in the same way, though. According to Heavy Reading market statistics, that sector has continued to grow this year, and will be worth nearly $980 million, up more than 6 percent from its total value in 2008. And future growth is expected, with Hubbard anticipating the Ethernet market to be worth more than $1.7 billion in 2013.

Also at the Expo, a number of vendors and operators have announced new products and services. Among the news makers are:

— Ray Le Maistre, International News Editor, Light Reading

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