The growing market for Ethernet test equipment

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25 June 2008 News

Information from Frost & Sullivan

The migration from digital subscriber line (DSL)-based services to direct Ethernet services is propelling the adoption of gigabit Ethernet (GbE) and 10GbE test equipment. The progression of 10GbE technology in particular is making an incredible impact on the total world GbE and 10GbE test equipment market.

New analysis from global growth consulting company Frost & Sullivan finds that the worldwide GbE and 10GbE markets earned revenues of $436,3 million in 2007 and estimates that this will increase fourfold by 2014 to reach $1,9 billion due to further advances in 10 GbE technology.

"Carrier Ethernets provide a multitude of advantages for end-users who run networks and wish to connect to either the Internet or another site," notes Frost & Sullivan research analyst Juan Rosales. "This demand facilitates the need for effective test equipment, and is likely to be a strong driving force behind the future success of the GbE and 10 GbE test equipment markets."

Although the features provided by GbE and 10 GbE remain similar, end-users can explore greater possibilities with 10 GbE because of its significantly higher data rate. This rate places different requirements on vendors, since 10 GbE allows end-users to perform forward error correction (FEC) and account for the transmission and transport aspect of the protocol.

However, the nature of Ethernet technology, whose engineers maintain the need to implement a variety of sophisticated functionalities, increasingly pressures GbE and 10 GbE test equipment vendors.

"The increasing demands for lower prices from end-users are often accompanied by their expectations for more sophisticated features," states Juan Rosales. "While both GbE and 10 GbE prices have been gradually declining, particularly with service providers and carriers' need for one-stop-shop solutions, it is imperative for vendors to work hard to meet the demands of their end users."

As various technologies continue to evolve in the communications industry, test equipment vendors must further develop systems that enable effective testing. With Ethernet prices decreasing over time, it is essential for end users to have access to low-cost test equipment.

For more information contact Patrick Cairns, Frost & Sullivan, +27 (0)21 680 3274.

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The growing market for Ethernet test equipment

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