Heavy Reading
Length: 58 Pages
Price: $3,995
15 Leading Ethernet Service Providers Interviewed
Click here for the full list of operators interviewed.
58 pages of analysis of the U.S. Ethernet services market, including key trends that will influence its growth over the next five years
A detailed overview of drivers for Ethernet adoption, and how patterns will vary across key vertical markets
In-depth analysis of eight major verticals: financial, healthcare, education, government, Web 2.0/content/media, manufacturing, retail and professional services
Exclusive results of a Heavy Reading end-user survey concerning data and Ethernet services usage
Steve Koppman
Contributing Analyst,
Heavy Reading
Steve has covered the North American carrier industry for 25 years as an analyst, focusing on market forecasting and analysis, issues of industry structure...MORE
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Length: 58 Pages
Price: $3,995
U.S. Ethernet Services Vertical Markets Update: 2014-2019

Ethernet is the fastest-growing major carrier data service and has to a considerable degree "won the war" to become the most widely adopted access and wide-area service for new connections.

Ethernet service revenues are growing rapidly in a larger IT environment of escalating data bandwidth demand that underscores Ethernet's TCO benefits. Ethernet shines compared to more costly, longer-established technologies, as it credibly appears to be a way to get more bandwidth for less. Ethernet's growth is thus driven both by expansion of wide-area service demand and migration to Ethernet from other technologies.

Retail Ethernet service in the U.S. has historically been dominated by several key vertical markets, starting with local governments and school districts in the 1990s adopting ILEC native/transparent LAN services. With accelerating bandwidth demand across the U.S. economy combined with Ethernet's increased availability, improving standards and declining costs fast-growing Ethernet service is now being adopted across an ever-increasing range of market sectors.

Four major verticals financial, healthcare, education and government account for at least half of U.S. retail Ethernet sales, while the Web 2.0/content/media sector constitutes the fastest-growing and most dynamic Ethernet service opportunity. This report also analyzes three more "runner-up" verticals manufacturing, retail and professional services, the latter two of which are important representatives of the SMB customers that are increasingly driving Ethernet's growth. These eight verticals collectively account for roughly 80 percent of the U.S. Ethernet services market today.

U.S. Ethernet Services Vertical Markets Update: 2014-2019 analyzes the U.S. retail Ethernet services market and projects growth for the eight major Ethernet vertical markets through 2019. It also examines the major issues that will affect each key vertical over the next five years. This report updates Heavy Reading's first study on the development and growth of retail Ethernet services 2010's U.S. Ethernet Vertical Markets: A Five-Year Market Forecast.


The report is based on in-depth interviews with senior executives at 15 leading Ethernet service providers, which collectively account for about 90 percent of U.S. retail Ethernet service sales. In many cases, we spoke with multiple sources per company. It also draws on an exclusive survey of U.S. companies regarding their current and future Ethernet services usage.

The excerpt below shows our five-year forecast for Ethernet revenues in the financial vertical the largest sector for Ethernet business today. Although the financial vertical continues to grow healthily, in line with the overall market, it is maturing. As the figure shows, revenues in this vertical are projected to grow from an estimated $1.1 billion in 2014 to $1.7 billion in 2019, at a 9 percent CAGR over the forecast period.

The excerpt below shows a sample response from our end-user survey, asking how respondents believed their organizations' total data services spending would change over the next three years. The overall trend is clearly positive, with nearly two thirds of respondents expecting their organization to increase spending. Only 6 percent expected to cut spending by any amount.

Report Scope & Structure

U.S. Ethernet Services Vertical Markets Update: 2014-2019 is structured as follows:

Section I is an introduction to the report, with complete report key findings.

Section II provides background on Ethernet services and examines overall trends in the retail Ethernet market, including Ethernet service adoption, service characteristics, cross-market drivers, cloud networking and the future direction of the market.

Section III examines specific patterns of Ethernet adoption and applications in eight significant U.S. retail vertical markets: financial, healthcare, education, government, Web 2.0/content/media, manufacturing, retail and professional services.

Section IV forecasts the Ethernet services market for these eight verticals.

Section V analyzes the results of a recent Heavy Reading end-user survey concerning data and Ethernet services usage. It discusses findings from the overall sample and drills down into vertical-specific findings from financial, education, manufacturing and professional service respondents.

U.S. Ethernet Services Vertical Markets Update: 2014-2019 is published in PDF format.