Growth of the Internet protocol/carrier Ethernet switch/router (IP/CESR) was driven by mobile backhaul and convergence in the metro network, according to a report by Frost & Sullivan, which also says these two factors will continue to drive the market.
The report, IP/CESR Market Update, revealed that the IP/CESR market revenue was $14bn in 2009, and projects that the applications, such as business services and IPTV infrastructure will climb continuously during 2010.
In the past couple of years, and especially in 2009, vendors focused on incorporating synchronization in their carrier Ethernet/IP MPLS solution to address the mobile backhaul market, the report said.
It added that rapid adoption of carrier Ethernet for mobile backhaul has been effected by this, along with carrier Ethernet operation, administration and maintenance (OAM), end-to-end management solutions and service assurance features.
The research firm said that the migration to next-generation backhaul equipment and convergence in the metro network would fuel the real growth.
In addition, the report notes that in terms of the competitive landscape, the IP/CESR market is concentrated with the top three vendors constituting more than 50% of market share.
Prayerna Raina, research analyst at Frost & Sullivan, said: "Ethernet also offers advantages such as modular upgrade of bandwidth which allows service providers to align costs with growth.
"With significant progress being made in Ethernet synchronisation standards and implementation of the same in products, 2011 will be the year for take off for Ethernet and mobile backhaul, delayed mainly by the macroeconomic conditions and solidification of service provider migration strategy."
