Frost & Sullivan Reveals Four Key Areas Driving Growth of the Global Gigabit Ethernet Testing Market

The global Ethernet testing market is expected to reach $2 billion by 2025, with North America leading the way

Frost & Sullivan’s recent analysis, High-Speed 200GbE and 400GbE Powering the Global Gigabit Ethernet Testing Market, finds that the growth of connected devices, incorporation of network virtualization functions, and shift to a multi-tenant cloud infrastructure are key factors driving the global Gigabit Ethernet (GbE) testing market. Compared to other markets, the impact of COVID-19 on the Gigabit Ethernet testing market was mild due to the shift to working from home, which increased the need for Ethernet technologies to ensure adequate bandwidth and security. The market is estimated to reach $2 billion by 2025 from $1.5 billion in 2020, at a compound annual growth rate (CAGR) of 6%.

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“Courtesy of the mass adoption among hyperscale data centers, the 40/100GbE testing solutions, which are the leading revenue contributors by equipment type, are expected to make up 43.6% of all types of Gigabit Ethernet solutions, generating revenue of $875.8 million by 2025, up from $595.6 million in 2020,” said Rohan Joy Thomas, Industry Analyst, Industrial Practice at Frost & Sullivan. “However, the fastest-growing segment by equipment type will be the 200/400GbE testing solutions, which are expected to account for 9.5% of the entire GbE testing revenue by 2025, up from 2.7% in 2020.”

Thomas added: “While network equipment manufacturers and service providers will continue to be dominant end-users, enterprises will experience higher growth over the forecast period. North America leads the world in terms of Gigabit Ethernet testing, contributing 49.8% of the revenue generated in 2020, and is expected to continue in 2025. Asia-Pacific is expected to be the fastest-growing region, with countries such as China and South Korea making significant headway in deploying 5G services.”

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From home use to the enterprise, telecom, and data center industries, the use of Ethernet is spread far and wide. Market participants must consider the following key areas driving Gigabit Ethernet technology:

• Industrial Internet of Things: Given the proliferation of IIoT on the factory floor, industrial Ethernet technologies should experience a high degree of adoption in applications like additive manufacturing, digital twinning, and robotics.
• Data Centers: With the increase in data from a large number of networked devices and wireless mobile communications, hyperscale data centers, which are the bleeding edge of technology for the data center industry, would eventually require faster Gigabit Ethernet specifications.
• 5G: Telecom operators deploying 5G require solutions that allow the incorporation of flexible Ethernet (FlexE) and adoption of enhanced Common Public Radio Interface (eCPRI), and offer visibility at the network edge.
• Automotive Ethernet: Automotive OEMs require a substantial amount of Ethernet technology in their vehicles as they revamp their electrical and electronic (E/E) architecture to meet the demands of sensor positioning, fusion centers, in-vehicle communications, and network security.

High-Speed 200GbE and 400GbE Powering the Global Gigabit Ethernet Testing Market is the latest addition to Frost & Sullivan’s Measurement & Instrumentation research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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