According to a new report, published by KBV research, The Global AI-Powered Routers Market size is expected to reach $13 billion by 2031, rising at a market growth of 22.7% CAGR during the forecast period.
The Wired AI-powered Routers segment is anticipating a CAGR of 23.7% during (2024 - 2031). Wired routers are still highly valued in environments where stability and security are paramount, such as large enterprises, data centers, and environments with high bandwidth requirements. Wired routers typically offer lower latency and higher reliability than their wireless counterparts, making them an attractive choice for applications that demand consistent performance. Furthermore, as businesses expand their digital infrastructures, the need for robust wired solutions incorporating AI-driven optimizations remains significant.
The Large Enterprises segment is leading the Global AI-Powered Routers Market by Enterprise Size in 2023; thereby, achieving a market value of $8.7 billion by 2031. For large enterprises, the driving factors behind the adoption of AI-powered routers include the need for advanced network management, scalability, and enhanced security. These organizations manage complex IT infrastructures, requiring robust solutions that can optimize network performance and ensure seamless connectivity across multiple locations. The ability of AI-powered routers to analyze network traffic in real-time, predict failures, and automate responses is crucial for large enterprises aiming to maintain uninterrupted operations and improve overall productivity.
The On-premises segment is registering a CAGR of 21.7% during (2024 - 2031). Businesses can mitigate the risks of data intrusions and guarantee compliance with industry regulations by maintaining their data within their facilities with on-premises routers. Additionally, organizations in sectors such as healthcare, finance, and manufacturing, which handle sensitive information and require stringent security protocols, often prefer on-premises solutions. Customizing the network environment to fit specific organizational needs further enhances the appeal of on-premises AI-powered routers.
The Residential segment is generating maximum revenue in the Global AI-Powered Routers Market by Application in 2023; thereby, achieving a market value of $5.9 billion by 2031. It is anticipated that the demand for AI-powered routers in this segment will be bolstered by the increasing volume of internet-connected devices in households as well as the emerging trend of smart homes. The residential market will gradually expand as consumers seek reliable, high-performance networking solutions to support their home automation systems, streaming services, and remote work requirements.
The BFSI segment is registering a CAGR of 22% during (2024 - 2031). The financial sector's need for robust and secure networking solutions is paramount, as banks and financial institutions handle sensitive customer data and require uninterrupted connectivity for their operations. The increasing concerns regarding data breaches and cyber threats can be addressed by AI-powered routers, which can improve security measures by utilizing advanced threat detection and automated response capabilities.
Full Report: https://www.kbvresearch.com/ai-powered-routers-market/
The North America region dominated the Global AI-Powered Routers Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $4.6 billion by 2031. The Europe region is experiencing a CAGR of 22.3% during (2024 - 2031). Additionally, The Asia Pacific region is showcasing a CAGR of 23.3% during (2024 - 2031).
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