Market Insight

Ethernet access device market up 8 percent year over year in 2017

April 06, 2018

Richard Webb Richard Webb Director, Research and Analysis, Service Provider Technology

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Following are highlights from the second half 2017 edition of the IHS Markit Ethernet Access Devices (EADs) Market Tracker, which includes data for the half-year ended December 31, 2017.

Worldwide Ethernet access device (EAD) revenue totaled $987 million in 2017, increasing 8 percent over 2016. The market is forecast to reach $1.47 billion in 2021, achieving a 2017–2022 compound annual growth rate (CAGR) of 8 percent.

“The EAD market is growing as a direct reflection of the continuous, steady demand from operators for mobile backhaul and wholesale services — and from business, broadband and building applications,” said Richard Webb, associate director, mobile backhaul and small cells research at IHS Markit.

“A new sub-segment is beginning to make an impact in the EAD market: the universal CPE, or ‘uCPE’ — a device that provides a ‘pico cloud’ of computing, storage and switching capable of executing virtualized functions,” Webb said. “Still, there will be an ongoing role for EADs even as virtual CPE takes off.”

Additional EAD market highlights

  • Increasing demand for fiber-connected EADs will be the main driver of the market though at least 2022; in 2017, there was a 6 percent increase in the fiber segment
  • Ciena was number one in EAD revenue market share for 2017, followed by ADVA, RAD, Actelis and MRV
  • North America remained the largest market for EADs in 2017, with 50 percent of EAD revenue; Europe, the Middle East and Africa (EMEA) had 24 percent, Asia Pacific held 20 percent and the Caribbean and Latin America (CALA) had 6 percent
  • For now and in the foreseeable future, North America maintains its lead through the early adoption of higher-capacity ports over fiber

Ethernet Access Devices Market Tracker

The biannual EAD report from IHS Markit tracks fiber and copper (EFM bonded and EoTDM bonded) Ethernet access devices by port speed, form factor and application. It also tracks uCPE. The report provides worldwide and regional market size, vendor market share, forecasts through 2022, analysis and trends.

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