Adva may have only acquired Overture in January, but it is clear that the deal has already had an effect as the Germany-based vendor has surpassed Ciena as the revenue market share leader in the Ethernet Access Device (EAD) market.
By acquiring Overture, Adva enhanced its FSP 150 product line with an Ethernet over Copper (EoC) platform, a programmable white-box network interface device (NID), a virtualized NID and an orchestration platform. By gaining these functions, Adva can deliver Carrier Ethernet-based cloud services in a hybrid or network functions virtualized (NFV) pure-play environment.
Trailing Ciena, which is now the number two EAD leader, are RAD, Actelis and MRV.
Adva’s movement comes at a time when the EAD market revenue, according to IHS Markit, grew 4 percent year-over-year to $516 million. The research firm attributes the growth in EAD revenue to the ongoing adoption of Ethernet for wireless backhaul, broadband, business and carrier wholesale applications.
From a segment perspective, IHS Markit noted that while fiber-based EAD access grew 4 percent and Ethernet in the first mile (EFM) increased 4 percent, Ethernet over time-division multiplexing (EoTDM) declined by 3 percent.
North America remains the largest market for EADs, consisting of 58 percent of EAD revenue in the first half of 2016, trailed by EMEA, Asia Pacific and CALA.
IHS Markit forecast the EAD market to grow through 2020, when it will reach $1.35 billion, achieving a 2015 to 2020 compound annual growth rate (CAGR) of 7 percent, largely driven by business, broadband and building applications, the largest market segment by that point, overtaking mobile backhaul.