SAN JOSE, Calif. -- Worldwide metro Ethernet equipment revenue hit $3.8 billion in 2004, and is projected to double to $7.6 billion by 2008, according to Infonetics Research's latest report, Metro Ethernet Equipment market share and forecast service. Metro Ethernet ports are growing strongly as well, increasing 433% between 2004 and 2008.

Close to $29 billion will be spent worldwide on Ethernet in metro networks between 2004 and 2008. Every year over the next 10 years, Ethernet will account for a larger portion of metro capex, and double-digit growth in Ethernet equipment revenue is expected at least through 2008.

"The emergence of carrier class products with strong MEF-defined MPLS protection and service capabilities--which we now track in our report as Carrier Ethernet Switches and Routers--is a major step toward making Ethernet an integral part of metro networks," said Michael Howard, Infonetics Research principal analyst. "Carriers have been waiting for products like these to help make metro Ethernet more dependable, resilient, and adaptable. Expect to see explosive growth in carrier Ethernet products in the next few years. Carriers are already deploying them, and they will continue displacing revenue from enterprise/metro Ethernet switches and enterprise/metro routers with Ethernet interfaces for the foreseeable future."

2004 Market Highlights

Infonetics Research Inc.