Top 3 Trends Impacting the Global Carrier Ethernet Access Devices Market Through 2021: Technavio

LONDON–(BUSINESS WIRE)–Technavio’s latest market research report on the global carrier Ethernet access devices market provides an analysis of the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

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The top three emerging market trends driving the global carrier Ethernet access devices market according to Technavio research analysts are:

  • Open Ethernet
  • Decrease in price of Ethernet access devices
  • Replacement of copper-based devices with fiber-based Ethernet access device

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Open Ethernet

Data is growing at an exponential rate, and many organizations are shifting from traditional network infrastructure to modems such as 10 GbE and 40 GbE switches to gain the ability to scale in real-time as the business demands rise. It is also crucial that enterprises adopt the best software, which can be integrated with hardware to provide better performance. Many organizations are finding it difficult to identify the software that matches their hardware to meet the application requirements.

Proprietary closed-code Ethernet switches restrict customers such as service providers to gain the maximum benefits out of the compute and storage infrastructures. An open Ethernet is an alternative approach to traditional Ethernet switches, an initiative by Mellanox Technologies. It offers complete flexibility and an opportunity for custom-designing to enhance utilization, efficiency, and gain better ROI. Open Ethernet includes open source components, namely OpenFlow and Quagga routing package that are pre-integrated.

“Open Ethernet is a next-level SDN, where the software resides on the Ethernet switch hardware. Open Ethernet eliminates vendor lock-in issues, allowing end-users to select open source switching and routing software. Using open source switching software to configure the hardware will enable end-users to be competitive in this interconnected high-speed world,” says Jujhar Singh, a lead analyst at Technavio for semiconductor equipment research.

Decrease in price of Ethernet access devices

The global carrier Ethernet access devices market is highly price-sensitive. The market demand has prompted many vendors to reduce prices to remain competitive in the market. Moreover, the cost is also one of the main reasons that end-users change vendors. The carrier Ethernet access devices offered in the market mostly have the same capabilities, except for certain advanced add-on features which offer vendors an opportunity to capture the market.

“Advances in technology have helped component suppliers to reduce the cost of the electronic components used in carrier Ethernet access devices. Thus, technological advances and intense competition in the market are leading to a reduction in the price of carrier Ethernet access devices,” says Jujhar.

Replacement of copper-based devices with fiber-based Ethernet access device

The telecommunication industry is undergoing a technological transformation with the introduction of optical technology. Optical transmission allows availability of higher bandwidth for communication. Hence, more number of telecom operators are migrating from legacy copper-based backhaul to fiber-based backhaul. The telecommunication industry is adopting optical-Ethernet access devices instead of the legacy copper Ethernet access devices to offer high-bandwidth networks to its customers.

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