Gigabit Ethernet Video Routers To Take Off

The market for Gigabit Ethernet Video Routers is on the verge of rapid growth due to their ability to deliver a new generation of digital TV services, according to In-Stat/MDR.

This market, at about $63 million worldwide in 2004, will soar to more than $930 million during 2008, the high-tech research firm reports.

“The capabilities of Gigabit Ethernet Video Routers are expanding to support advanced audio and video compression methods, and widening their features and functions to provide fully converged Internet Protocol networks that are capable of delivering an extended range of multiple services that go beyond the so-called ‘triple play’ of just video, voice, and high-speed data,” said In-Stat/MDR analyst Gerry Kaufhold. “These multi-play services include HDTV, local ad insertion, network PVR, switched broadcast, games-on-demand, and future services that will be developed for digital TV.”

A recent report from In-Stat/MDR also found:

— Gigabit Ethernet Video Routers are attractive to service providers that must deploy ever-increasing HDTV services over an infrastructure with finite bandwidth resources. Using Intelligent Video Network approaches, a Gigabit Ethernet infrastructure helps network operators future-proof their systems to deliver HDTV services for many years.

— Gigabit Ethernet Video Routers make it easy for a digital TV service operator to segment its large systems into distinct zones of operation that permit a single headend to provide customized video programming services with unique programming choices for each zone. Gigabit Ethernet Video Routers greatly improve the business case for Video-On-Demand (VOD) and all other customized video, voice, data and other services.

— Because Internet Protocol and Gigabit Ethernet are already widely deployed in the corporate, business, and government worlds, the long-term growth opportunities for Gigabit Ethernet Video Routers are very positive.