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Analysis of the MPLS/IP VPN Services Market

  • May 2012
  • -
  • Frost & Sullivan
  • -
  • 86 pages

This research service presents a detailed qualitative analysis of the drivers, restraints, and trends in the North American MPLS/IP VPN services market. The study also presents a quantitative analysis of the market, including forecasts for revenue/ports and market shares by revenue. Also included are comparisons of previous to current forecast data. The study is segmented by wholesale and retail markets and contains analysis for both the United States and Canada. The study period for the U.S. market is 2009 to 2016. The study period for Canada is 2011 to 2016, as this is the first time Frost & Sullivan has included an analysis of the Canadian market.

Executive Summary

The North American multiprotocol label switching/Internet protocol (MPLS/IP) virtual private network (VPN) services market continues to have double-digit growth because of increasing demand across verticals. Market revenue exceeded $x billion in 2011, and the market grew at a greater rate than Frost & Sullivan’s 2010 study predicted as the economy began recovering from the recession.
The need to improve operational efficiency is driving enterprise initiatives on convergence. This efficiency is the most important driver fueling adoption of MPLS/IP VPNs, as customers realize the cost benefits (operational expenditure reduction) of moving their voice, data, and video applications to a single IP-based network.
Also, as customers migrate to MPLS/IP VPNs to take advantage of the network’s ability to support traffic prioritization through class-of-service protocols, focus is growing on tools that monitor network and application performance. These tools are critical for successful MPLS/IP VPN implementation as customers make the move to a converged architecture and demand more control over the applications they wish to run on the network.
Frost & Sullivan believes that the ongoing enterprise focus on converged business services, the growing adoption of a virtual environment for business applications, and the need to securely connect distributed users and data centers will continue to fuel market demand for MPLS/IP VPN services.
This study is an update of Frost & Sullivan’s “U.S. MPLS/IP VPN Services Market Update 2010” (N858-63). However, this year’s update includes Canadian market analysis in addition to U.S. market analysis. For the U.S. analysis, the study period is 2009 to 2016; for Canada, the study period is 2011 to 2016. Mexico is not included in this study.

Market Overview—Key Questions This Study Will Answer

Is the MPLS/IP VPN services market growing, and at what rate?
What are the factors driving growth in the MPLS/IP VPN services market?
How is the emergence of Ethernet in the wide area network (WAN) transport arena affecting the MPLS/IP VPN services market?
What initiatives are communication service providers (CSPs) taking to compete in this market?
How do different CSPs’ service offerings compare in the market? Which company is leading, and which company is trailing?

Table Of Contents

Analysis of the MPLS/IP VPN Services Market

Executive Summary 4
Market Overview 8
Total MPLS/IP VPN Services Market -
External Challenges: Drivers and Restraints 15
Forecasts and Trends 24
Market Share and Competitive Analysis 34
United States Breakdown 36
Demand Analysis 56
Canada Breakdown 64
The Last Word (Conclusions and Implications) 77
Appendix 80

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