North America Metro Ethernet Services Market Analysis Report By Service, By Category, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The North America metro ethernet services market size was worth USD 18.7  billion in 2017 and is expected to grow with a CAGR of 4.8% during the forecast period, from 2018 to 2025. The growing need for on-demand delivery of content services is a major factor to drive the market growth. Carrier Ethernet has the added benefit that it is offered as a service to users and making it ideal for on-demand delivery of content.

The growing need to enhance user experience and rising popularity of providing high-quality video content and video streaming is expected to have a positive impact on market growth in North America over the forecast period.

Growing demand for high-quality networks and the necessity of reliable networks are influencing the data centers as well as service providers to adopt carrier Ethernet in North America. It has become easier owing to the emergence of Software-Defined Networking (SDN), using SDN; service providers can offer reliable, simple, and scalable networking experiences to customers at low prices.

Increasing demand for high-quality video streaming and video content in North America is the key driver to fuel the growth of the Metro Ethernet services market. Metro networks are designed in such a way that they are capable of managing heavy data traffic which is generating from video content with high definition, thereby increasing the need to enhance the service in the region.

An increase in demand for cloud-based applications along with the development of metro networks from 1 GbE to 100 GbE ports with connectivity across the corporate and residential sectors is boosting the demand for the North American metro ethernet services market. In addition, the growing demand for reliable, scalable, high-quality, and economical connectivity options in the retail/enterprise sector is augmenting the need for carrier Ethernet in metropolitan areas. Furthermore, growing usage of cloud-based applications and video applications including video streaming, video conferencing and other services are driving the demand for high-quality bandwidth among enterprises, thereby expected to boost the market growth over the forecast period. However, due to intense competition among telecom service providers in this region, buyers have high power for bargaining. This factor is expected to hamper the market growth to some extent.

Category Insights

Based on category, the market is bifurcated into wholesale/access and retail/enterprise. The retail/enterprise category is estimated to witness substantial growth during the forecast period. This is due to the increasing demand for high-speed and reliable data services by the retail/enterprise sector in North America.

Increasing demand for high-quality video streaming, video conferencing in the retail/enterprise sector, especially in metro cities will play an important role to drive the regional market growth.

Services Insights

In this market, the service segment is fragmented into E-LAN, E-Access, E-Tree, and E-Transit. In 2017, the E-LAN service held the largest market share of more than 25.0% and is projected to generate the highest revenue from 2018 to 2025.

The E-tree segment is projected to have significant growth during the forecast period; thereby Ethernet in metropolitan areas is anticipated to witness notable growth in the next few years. Telecom network & service providers are funding in joint efforts to gain maximum customer base and hold existing customers. These initiatives are expected to open new avenues for market growth over the forecast period.

COVID-19 Impact Analysis

The North American metro ethernet services market has been positively impacted due to the outbreak of COVID-19. During the lockdown, companies operating in U.S. and Canada have adopted work from home strategy. As employees adapt to this new virtual workplace, it has become important that the technical requirements will play a vital role in work-from-home positions. Therefore, a strong internet network allows employees to complete their work, stay in contact with clients, and collaborate with colleagues. Poor internet connectivity can lead to grainy video calls, prolonged file download times, and also communication issues.

Hence, WLAN or Wi-Fi directly connected to an Ethernet cable to an existing router offers more power and capability. This resulted in a significant boost in both ranges as well as maximum transmission speed.

Regional Insights

In North America, enterprises are dealing with flat and falling IT budgets due to slowdown-hit, recessions, and currency fluctuations since the last few years. On the other hand, the bandwidth requirement is continuously growing and demand for Ethernet in metro cities is increasing due to torising reliability on collaborative applications to share huge data over the WAN amongst distributed users.

In this region, U.S. has dominated the market, in 2017 and accounted for around 45.0% of the total market. The U.S. market is projected to have a steady growth over the forecast period.

North America Metro Ethernet Services Market Share Insights

The major players included in this market are NewWave Communications; Charter Communications, Cogent Communications, Inc.; Level 3 Communications (CenturyLink); Telefonaktiebolaget LM Ericsson; Mediacom Communications Corporation; AT & T Inc.; Amdocs LimitedLiberty Global; and Netcracker Technology Corporation.

Major companies are engaged in implementing marketing strategies including product innovation, and product launch to deliver advanced devices to their customers and expand their geographical presence. For instance, in 2016, Amdocs, Inc. was chosen by Singaporean telecommunications infrastructure provider, NetLink Trust for providing advanced business and operations support systems (B/OSS). This solution will reduce maintenance and repair times, enhance the quality of service, and allow acceleration of fiber connectivity and reduce maintenance time.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the North America metro ethernet services market report based on category, services, and region:

• Category Outlook (Revenue, USD Billion, 2014 - 2025)
    • Retail/Enterprise
    • Wholesale/Access

• Services Outlook (Revenue, USD Billion, 2014 - 2025)
    • E-Line
    • E-LAN
    • E-Tree
    • E-Access
    • E-Transit

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico