Router and Switch Market to Grow with a CAGR of 6.4% Globally through to 2028.
Global Router and Switch Market is rising due to
increasing demand for high-speed internet, rapid digitalization, and the
growing adoption of cloud-based services in the forecast period 2024-2028.
According to TechSci Research report, “Global Router
and Switch Market - Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2028”, The Global Router and Switch Market is
experiencing significant growth driven by the expanding demands of modern
digital networks. Routers and switches, fundamental components of network
infrastructure, facilitate seamless data transmission and enable efficient
communication between devices. With the surge in internet usage, cloud
computing, and the proliferation of connected devices, businesses and consumers
alike are demanding faster and more reliable network solutions. Enterprises are
investing in advanced routers and switches to enhance their network
capabilities, ensuring swift data transfer and improved connectivity.
Additionally, the rise in remote work and the need for robust home networks
have boosted consumer demand for high-performance routers and switches.
Technological advancements such as 5G networks and IoT devices further fuel the
market, driving innovation in router and switch designs. The market is
characterized by intense competition and constant innovations, with companies
focusing on developing cutting-edge solutions to meet the escalating demands of
the digital age, making the Global Router and Switch Market a dynamic and
evolving sector.
The global router and switch market has witnessed
significant growth and transformation in recent years. With the increasing
demand for high-speed internet connectivity and the proliferation of digital
technologies, organizations across various industries are investing heavily in
upgrading their network infrastructure. Routers and switches play a crucial
role in facilitating the flow of information across networks, enabling
businesses to communicate, collaborate, and access online resources seamlessly.
One of the key drivers of the router and switch market is the growing need for
reliable and efficient network connectivity. As businesses become more
dependent on digital communication and data transfer, the demand for routers
and switches that can handle large volumes of network traffic has surged.
Organizations require robust networking solutions to support
bandwidth-intensive applications, ensure smooth data transmission, and maintain
uninterrupted connectivity.
The rise of cloud computing and the Internet of Things
(IoT) has further fueled the demand for routers and switches. As more
organizations adopt cloud-based services and deploy IoT devices, the need for
scalable and secure networking solutions becomes paramount. Routers and
switches serve as the backbone for these technologies, enabling seamless
connectivity and efficient data transfer between devices and the cloud. They
provide the necessary infrastructure to support the increasing number of
connected devices and the massive amounts of data generated by IoT devices.
Digital transformation initiatives have also
contributed to the growth of the router and switch market. With the
proliferation of mobile devices and the adoption of remote work, businesses
require reliable networking infrastructure to support remote workers and ensure
uninterrupted connectivity. Routers and switches with advanced security
features, such as firewalls and virtual private network (VPN) capabilities,
help protect sensitive data and ensure secure remote access.
Moreover, the expansion of e-commerce and online
retail channels has played a significant role in the growth of the router and
switch market. As businesses increasingly rely on online platforms for sales,
customer engagement, and supply chain management, the need for robust and
secure networks becomes paramount. Routers and switches enable businesses to
establish reliable and high-speed connections, ensuring seamless online
transactions and efficient data transfer. In terms of geographical dominance,
North America leads the global router and switch market. The region is driven
by the presence of major technology companies, high adoption of advanced
networking solutions, and the need for robust connectivity in various
industries. However, other regions such as Europe, Asia Pacific, and Latin
America are also witnessing significant growth in the router and switch market,
driven by increasing digitalization efforts and the need for reliable
networking infrastructure.
In conclusion, the global router and switch market is
experiencing robust growth driven by the increasing demand for high-speed
connectivity, the rise of cloud computing and IoT, digital transformation
initiatives, the need for secure remote access, and the expansion of e-commerce
and online retail channels. As organizations continue to prioritize digital
transformation and invest in network infrastructure upgrades, the router and
switch market is poised for further expansion in the coming years. Manufacturers
are focusing on developing innovative products that cater to the evolving needs
of businesses in the digital age, ensuring reliable, scalable, and secure
networking solutions.
Browse over 26 market data Figures
spread through 91 Pages and an in-depth TOC on "Router and Switch Market”.
The Global Router and Switch Market is segmented into Product,
Service, regional distribution, and company.
Based on Product, the ATM & ethernet switch segment
led the market in 2022, accounting for over 67% share of the global revenue.
The ATM (asynchronous transfer mode) and ethernet switch are a subset of the
larger networking market for router and switch. As more data-intensive
applications and services emerge, demand for high-speed networking solutions is
increasing, driving growth in the ATM & ethernet switch. Additionally, the
convergence of ATM, ethernet, and other networking technologies is leading to
the development of multi-protocol switch solutions, which offer greater
flexibility and scalability to businesses. The ATM provides high-speed data
transfer at up to gigabit speeds, making it suitable for demanding multimedia
and video conferencing applications. It also allows for easy expansion as
network requirements grow, making it an attractive choice for large networks.
The service provider core router segment
is expected to showcase lucrative growth over the forecast period. These
routers are the backbone of service provider networks and deliver high-speed,
reliable internet connectivity to consumers and businesses. Service providers
are investing in new service provider core routers to support the deployment of
5G networks, which require high-speed, low-latency connectivity. Besides,
cybersecurity threats continue to increase, and service provider core routers
are becoming increasingly sophisticated in their security features, including
encryption, firewalls, and intrusion detection systems. Additionally, there is
a growing demand for higher-bandwidth routers, with the emergence of 400G and
800G routers offering significantly higher speeds than current 100G routers.
Based on region, North America dominated the market and
accounted for over 38% share of the global revenue in 2022, owing to the rapid
adoption of advanced technologies across regional multinational companies.
Rising fixed broadband traffic and increasing mobile data traffic propel
service providers to upgrade their core networks, mobile backhaul, aggregation,
and access in the North American regions. There has been a growing trend
towards deploying software-defined networking (SDN) and network functions
virtualization (NFV) technologies, creating a growing market for software-based
routers and switches. The government has made significant investments in
infrastructure to support the growth of technology, including developing
high-speed networks and deploying new network infrastructure. For instance, in
May 2021, the Government of Canada announced making triple spectrum available
for Wi-Fi to support rural connectivity, competition, and deployment of 5G
technologies in the country. Further, it will offer access to the 6GHz spectrum
which will support higher speeds and higher user capacity for wireless devices
connected to Wi-Fi routers.
The Asia Pacific region is anticipated
to witness significant growth in the router & switch owing to factors such
as the growth of the internet and mobile usage, increasing adoption of cloud
computing, and the growth of the IT industry in countries such as China, India,
and Japan. Operators in the Asia Pacific region are actively promoting the
benefits of 5G technology, the services it can enable, and the use cases and
services that will benefit consumers the most, such as virtual and augmented
reality, autonomous vehicles, and smart cities. For instance, in October 2022,
Cisco Systems Inc., a digital communication technology provider, will set up a
new manufacturing facility in India. The new manufacturing facility will
produce mobility, network, and data center products, including routers,
switches, access points, endpoints, and controllers.
Major companies operating in Global Router and
Switch Market are:
- Cisco Systems, Inc.
- Huawei Technologies Co., Ltd.
- Juniper Networks, Inc.
- Arista Networks, Inc.
- Nokia Corporation
- Hewlett Packard Enterprise Development
LP
- Dell Technologies Inc.
- Extreme Networks, Inc.
- ZTE Corporation
- Ericsson AB
- Broadcom Inc.
- Fortinet, Inc.
- Allied Telesis Holdings K.K.
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“The global router and switch market has experienced
significant growth and transformation in recent years, driven by the increasing
demand for high-speed internet connectivity and the proliferation of digital
technologies. Organizations across various industries are heavily investing in
upgrading their network infrastructure, relying on routers and switches to
facilitate seamless communication, collaboration, and access to online
resources. The surge in bandwidth-intensive applications, cloud computing, and
the Internet of Things (IoT) has further fueled the demand for robust and
scalable networking solutions. Additionally, the need for reliable connectivity
to support remote work and secure access to sensitive data has contributed to
the market's expansion. The rise of e-commerce and online retail channels has
also played a significant role, emphasizing the importance of robust and secure
networks for seamless transactions and efficient data transfer. Geographically,
North America leads the market, but other regions such as Europe, Asia Pacific,
and Latin America are also witnessing substantial growth. Manufacturers are
actively developing innovative products to meet the evolving needs of
businesses, ensuring reliable, scalable, and secure networking solutions. As
organizations continue to prioritize digital transformation and invest in
network infrastructure upgrades, the router and switch market is poised for
further expansion in the coming years.,” said Mr. Karan Chechi, Research
Director with TechSci Research, a research-based management consulting firm.
“Router
and Switch Market – Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Product (Internet Exchange Router, Service Provider Core
Router, Multiservice Edge Router, Ethernet Service Edge Router, ATM &
Ethernet Switch), By Service (BRAS, Ethernet Aggregation, Ethernet Access,
Internet Data Center/Collocation/ Hosting, Others), By Region, By Competition”,
has evaluated the future growth potential of Global Router and Switch Market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Global Router and Switch Market.
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