“Global Router And Switch Market to reach a market value of USD 85.7 Billion by 2031 growing at a CAGR of 7.2%”
The Global Router And Switch Market size is expected to reach $85.7 billion by 2031, rising at a market growth of 7.2% CAGR during the forecast period.
Core routers are integral to the backbone of internet service providers (ISPs) and large enterprises, managing high data traffic volumes and ensuring reliable connectivity across extensive networks. Thus, the service provider care router segment acquired 4% revenue share in the market 2023. The deployment of 5G networks and the continuous expansion of broadband services have significantly boosted the demand for core routers. These routers' high capacity and advanced routing capabilities enable service providers to meet the growing demand for high-speed Internet and data services, making them a vital component of modern telecommunications infrastructure.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In October 2023, Actelis Networks, Inc. has launched the GigaLine 900, an innovative in-building Gigabit connectivity solution that utilizes existing wiring for quick deployment. It provides cost-effective broadband access without the need for fiber rewiring, enhancing efficiency for providers and satisfaction for customers in multi-tenant units. Additionally, In July 2023, Huawei Technologies Co., Ltd. unveiled its Xinghe Intelligent Network Solution to drive digital-intelligent development in Southern Africa. Highlighting innovations such as Wi-Fi 7 APs and high-density data center switches, Huawei aims to boost network efficiency and security across diverse sectors.
Based on the Analysis presented in the KBV Cardinal matrix; Cisco Systems, Inc. and Huawei Technologies Co., Ltd. are the forerunners in the Router and Switch Market. In January, 2022, Cisco announced an expansion of the Cisco Catalyst 9000 portfolio, based on the powerful Unified Access Data Plane (UADP) ASIC silicon, to bring more enterprise-grade switching capabilities to the industrial edge for industries operating in harsh environments and supporting critical infrastructure like utilities, oil and gas, roadways, and rail. the new Catalyst IE9300 is the most feature-rich industrial switch available and is purpose-built for IT and OT to automate network operations, bring Zero Trust security to operational spaces, offer high port density with switch stacking with centralized management and more. We’re empowering our customers to modernize their large-scale industrial environments and build an agile network, while protecting their assets from cyber threats. Companies such as Dell Technologies, Inc., HP, Inc., Juniper Networks, Inc. are some of the key innovators in Router and Switch Market.
Both enterprises and consumers increasingly require faster internet speeds and reliable connectivity, pushing the need for advanced networking equipment capable of handling higher bandwidths. For enterprises, high-speed Internet is essential for various business operations.
Additionally, Governments worldwide increasingly recognize the importance of digital infrastructure as a cornerstone of economic development and societal well-being. One of the primary areas of focus is the development of smart cities.
The acquisition of high-performance networking equipment is often the most substantial expense. Advanced routers and switches, particularly those designed to handle large data volumes and provide high-speed connectivity, come with a hefty price tag. Hence, the high initial costs associated with advanced routers and switches pose a significant obstacle for smaller businesses and those with limited budgets.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Based on product, the market are divided into internet exchange router, service provider care router, multiservice edge router, ethernet service edge router, and ATM & ethernet switch. The multiservice edge router segment procured 7% revenue share in the router and switch market in 2023. Multiservice edge routers are versatile devices that support various types of network traffic and services, including voice, video, and data.
On the basis of service, the market is classified into BRAs, ethernet aggregation, ethernet access, internet data center/collocation/hosting, and others. The BRAs segment witnessed 26% revenue share in the market in 2023. Broadband Remote Access servers (BRAs) are critical components in managing broadband connections and providing remote access to the Internet.
Free Valuable Insights: Global Router And Switch Market size to reach USD 85.7 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment procured 27% revenue share in the router and switch market in 2023. The region's rapid economic growth, expanding internet user base, and increasing investments in digital infrastructure are key factors driving this growth.
The Router and Switch Market is highly competitive, driven by rapid technological advancements, price sensitivity, and global expansion efforts. Major players like Cisco and Huawei dominate, investing heavily in R&D to innovate and meet diverse customer demands. Strategic partnerships and alliances are crucial for expanding product offerings and strengthening market positions. Compliance with international regulations also shapes market dynamics. Overall, companies compete on technology, pricing, and global reach to capture market share and cater to specific customer needs effectively.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 49.7 Billion |
| Market size forecast in 2031 | USD 85.7 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 7.2% from 2024 to 2031 |
| Number of Pages | 241 |
| Number of Tables | 303 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Product, Service, Region |
| Country scope |
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| Companies Included | Cisco Systems Inc., Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Ribbon Communications, Inc., Extreme Networks, Inc., Dell Technologies, Inc., ADTRAN, Inc. (ADTRAN Holdings, Inc.), Actelis Networks, Inc. and Hewlett Packard Enterprise Company |
By Product
By Service
By Geography
This Market size is expected to reach $85.7 billion by 2031.
Growing demand for high-speed Internet are driving the Market in coming years, however, Requirement for high initial costs restraints the growth of the Market.
Cisco Systems Inc., Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Ribbon Communications, Inc., Extreme Networks, Inc., Dell Technologies, Inc., ADTRAN, Inc. (ADTRAN Holdings, Inc.), Actelis Networks, Inc. and Hewlett Packard Enterprise Company
The expected CAGR of this Market is 7.2% from 2024 to 2031.
The Internet Data Center/Collocation/ Hosting segment is leading the Market by Service in 2023; thereby, achieving a market value of $32.4 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $31.2 billion by 2031.
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