Combined global revenue for Ethernet and IP MPLS VPN services will top $81 billion by 2016, fueled by surging data traffic and cloud services, according to market-research firm Infonetics Research.

Its 2012 Ethernet and IP MPLS VPN Services report analyzes and forecasts the market for managed and unmanaged layer 2 and layer 3 IP MPLS VPN services and wholesale and retail Ethernet services.

"The move from legacy frame relay, ATM, and leased line services onto Ethernet and IP services is quickening as businesses put a razor-sharp focus on staying competitive in today's highly interconnected, mobile, video- and cloud-oriented world," Michael Howard, co-founder and principal analyst of Infonetics Research, said in a statement. "By 2015, ATM and frame relay will virtually vanish, while private leased lines will be around a bit longer."

The report found that global Ethernet and MPLS IP VPN service revenue grew a combined 13% in 2011 to more than $50 billion.

Asia Pacific is expected to overtake EMEA as the leading region for IP MPLS VPN services in 2012 and already leads in Ethernet services. Asia will remain the leader for the combined IP MPLS VPN and Ethernet services market going forward, led by China and India, according to the report.