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Global Ethernet testing market expected to reach $2 billion by 2025

The US is expected to lead the expansion until China and South Korean come online

The global ethernet testing market is expected to reach a valuation of $2 billion by 2025, according to a new report by Frost & Sullivan.

Connected devices, incorporation of network virtualization functions, and shift to a multi-tenant cloud infrastructure are key factors driving the growth of global the Gigabit Ethernet (GbE) market, the report found.

North America, a leader in the worldwide 5G market, is estimated to contribute 49.8% of the revenue generated in 2020. This trend is expected to continue through 2025, at which point countries such as China and South Korea are projected to take the lead. The report also indicates a 6% compound annual growth rate (CAGR) from 2020 through 2025.

"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."

To date, the COVID-19 pandemic has had a positive effect on the Gigabit Ethernet testing market — there is an increasing need for ethernet technologies to ensure adequate bandwidth and security amid seismic work-from-home shift.

As per Frost & Sullivan, the following industries are key markets for Gigabit Ethernet technology:

  • Industrial Internet of Things (IIoT): 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, hyper-scale data centers 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 original equipment manufacturers (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.
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