The North America metro Ethernet services market is projected to reach USD 32.29 billion by 2030, registering a compound annual growth rate (CAGR) of 3.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. The increasing demand for high-quality video content and video streaming in metro areas is one of the primary drivers of the market. As users' expectations for seamless video experiences rise, the demand for carrier Ethernet services to support high-bandwidth applications has grown significantly.
A key factor contributing to the growth of Ethernet services in metropolitan areas is the consolidation of data centers. As data centers consolidate, there is an increased need for enhanced performance and higher bandwidth to support the expanding data traffic. This consolidation allows service providers to offer improved Ethernet services, which in turn drives demand across metro regions.
The E-Transit service segment is expected to show significant growth during the forecast period. This growth is largely driven by the increasing demand for carrier Ethernet services in the enterprise sector, especially in metro areas within North America. Enterprises in cities across the U.S. and Canada are increasingly adopting fast, cost-effective, and high-quality Ethernet services to manage the surge in data traffic. As businesses rely more heavily on cloud-based applications and real-time data transfer, Ethernet services are crucial to ensure smooth operations and optimal performance.
Additionally, E-LAN (Ethernet Local Area Network) and E-Line services are expected to hold a substantial share of the overall market revenue during the forecast period. The E-Tree segment, which provides point-to-multipoint Ethernet connectivity, will also see steady growth as demand for flexible and scalable Ethernet solutions increases in metropolitan areas.
In terms of market categories, the enterprise/retail sector is expected to play a significant role in driving the growth of the North America metro Ethernet services market. This sector’s demand for services like VoIP (Voice over IP), video conferencing, and high-quality video streaming is increasing rapidly, particularly in metro areas. As businesses require reliable and high-performance networking solutions for communication and collaboration, metro Ethernet services are becoming more essential for day-to-day operations.
North America is known for being highly diversified and an early adopter of advanced technologies. However, the internal competition among service providers may act as a hindrance to the widespread adoption of Ethernet services in metropolitan regions. As companies strive to differentiate themselves and meet the growing demand for bandwidth and data transfer speeds, the competition could slow down the rapid proliferation of Ethernet services.
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North America Metro Ethernet Services Market Report Highlights:
• Enterprise/Retail Segment: The retail/enterprise sector is expected to experience significant growth over the forecast period, driven by recent industry standardizations in the carrier Ethernet market. The growing need for VoIP, video conferencing, and high-quality video streaming in businesses is fueling demand for reliable Ethernet connectivity in metro areas.
• Service Segments: The E-LAN segment accounted for the largest share of the market in 2023. This service type is widely used in metro areas to provide scalable, flexible, and secure networking solutions to businesses and enterprises. The E-Tree segment, which provides point-to-multipoint connectivity, is expected to register the highest growth rate over the forecast period, driven by its suitability for enterprises requiring large-scale, efficient Ethernet services.
• Geographical Growth: The U.S. and Canada are expected to witness substantial growth during the forecast period, largely due to the rising demand for bandwidth-intensive applications such as cloud computing and high-speed data transfers. The growing adoption of cloud-based applications across industries in both countries is driving the demand for high-quality, dedicated data transfer speeds, which metro Ethernet services are well-equipped to provide.
North America Metro Ethernet Services Market Segmentation
Grand View Research has segmented the North American metro ethernet services market based on category, and service:
North America Metro Ethernet Services Category Outlook (Revenue, USD Billion, 2018 - 2030)
• Retail/Enterprise
• Wholesale/Access
• Light Weapons
North America Metro Ethernet Services Service Outlook (Revenue, USD Billion, 2018 - 2030)
• E-Line
• E-LAN
• E-Tree
• E Access
• E Transit
North America Metro Ethernet Services Country Outlook (Revenue, USD Billion, 2018 - 2030)
• North America
o U.S.
o Canada
o Mexico
List of Key Players in the North America Metro Ethernet Services Market
• AT&T Intellectual Property
• Charter Communications
• Cogent Communications
• Comcast
• Frontier Communications Parent, Inc.
• CenturyLink, Inc.
• Mediacom Communications Corporation
• NewWave Communications, LLC
• Verizon
• Zayo Group, LLC.
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