Demand for MPLS services set to grow
A new study from Infonetics Research has suggested that the market for MPLS services is set to grow.
The 2012 Ethernet and IP MPLS VPN Services report, which analyses and forecasts the market for managed and unmanaged layer 2 and layer 3 IP MPLS VPN services and wholesale and retail Ethernet services, has found that the demand for IP MPLS VPNs and Ethernet services is set to grow over the coming years.
Michael Howard, co-founder and principal analyst of Infonetics Research, said, “Despite some slowdown in Europe in 2011 and 2012, we see solid growth ahead for both IP MPLS VPNs and Ethernet services, together topping $81 billion worldwide by 2016."
He added, “The move from legacy frame relay, ATM, and leased line services onto Ethernet and IP services is quickening as businesses put a razor-sharp focus on staying competitive in today's highly interconnected, mobile, video- and cloud-oriented world. ATM and frame relay will virtually vanish, while private leased lines will be around a bit longer."
The report findings reveal that Global Ethernet and MPLS IP VPN service revenue grew by a combined 13 per cent in 2011 to just over $50 billion, with the growth fuelled by rapidly increasing data traffic, cloud services and a drive to cut costs.
The researchers also predict that Asia Pacific is expected to overtake EMEA as the leading region for IP MPLS VPN services this year. The region already leads in Ethernet services. According to the report, Asia will remain the leader for the combined IP MPLS VPN and Ethernet services market going forward, with China and India being the front-runners in this field.