The Global Router Market size is expected to reach $25 billion by 2027, rising at a market growth of 8.1% CAGR during the forecast period. The router can be defined as the common device for modern network computing that connects workers to networks, both local as well as Internet, where just about each crucial business activity occurs. In absence of routers, people could not utilize the Internet to communicate, collaborate, or obtain information and learn.
Routers are also capable of providing security. Embedded firewall and content filtering software offer extra protection from undesirable content and unsecured websites without hampering the user’s online experience. However, routers are not suitable for Internet connections or data transmission. The majority of routers enable individuals to connect hard drivers and utilize them as file-sharing servers, or printers that can then be accessed by any person on the network.
Factors such as the rise in the digitalization process, increasing demand for high-speed internet services in the commercial and private sectors, and growing IPTC subscriber base are expected to create new growth avenues for the players operating in the router market in upcoming years. The outbreak of the COVID-19 pandemic and subsequent lockdown restrictions have compelled companies to adopt work from a home model, which boosts the demand for faster internet services and also boosts the work done for the company. This aspect directly helped the router providers to increase their revenue share in the market. The market faces stiff competition from local suppliers in the market who supply similar kinds of cable modems at a low cost. Therefore, local suppliers could hamper the growth of the router market in the next few years.
In the last few years, the router market has been growing at a rapid pace. Additionally, the outbreak of the COVID-19 pandemic is expected to positively affect the demand and growth of the router market. Factor such as a surge in requirement of routers among companies for enhancing their employee's internet requirement is responsible for the massive demand of routers during the pandemic. Additionally, the router market is anticipated to be fueled by the rising adoption of the work-from-home model by numerous companies to curb the transmission of coronavirus which had resulted in a faster internet connectivity technology among individuals. Moreover, the global pandemic would spur the growth in several industrial automation industries like manufacturing, retail, and e-commerce, oil & gas, healthcare, resulting in massive demand for industrial routers technology. Thus, the router market has expected to gain momentum during the pandemic period based on the basis of these factors.
The faster internet connectivity technology enables consumers to reap a host of benefits such as gathering operational data from remote equipment and simplifying the online banking service, which would boost the growth and demand for router services in the market. Additionally, internet connectivity technology offers applications to companies that involve transferring and cross-referencing data, gathering performance data of employees, and providing marketing products efficiently.
The growth of the router market would be driven by the rising adoption of connected healthcare devices like remote monitoring equipment and heart-rate monitoring device among healthcare experts. Additionally, connected medical devices are extremely helpful for healthcare experts to focus on active patient engagement and offer patient-oriented care delivery services. Therefore, these services need faster internet connectivity technology among healthcare professionals and doctors, thereby propelling the growth and demand for the router in the market.
The high installation cost of a wired router may discourage many companies and individuals to deploy this solution despite the fact that it provides numerous benefits. In addition, people residing in low-income countries and SMEs having a low budget are expected to slow down the growth rate of the router market in the forthcoming years. As mobile broadband offers internet connectivity at any time and any place, the dependency on this type of internet connectivity is constantly increasing among consumers. Thus, this factor is a major barrier to the growth of the router market in the upcoming years.
Based on Type, the market is segmented into Wireless and Wired. Wireless segment is further categorized into Dual, Single and Tri. Like a wireless router, a wired router also utilizes an Ethernet cable in order to establish a connection to a modem. Then, it utilizes distinct cables to establish a connection with one or more devices within the network, develop a LAN, and connect the devices inside the network loop to the internet.
Based on End User, the market is segmented into IT & Telecom, BFSI, Education, Healthcare, and Others. The IT & Telecom segment garnered the maximum revenue share of the router market in 2020. Factor such as wide-scale adoption of wireless routers among the IT organizations to obtain information and pass information to workers and customers via the internet at a high speed with improved security is responsible for the growth of this segment.
Report Attribute | Details |
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Market size value in 2020 | USD 14.5 Billion |
Market size forecast in 2027 | USD 25 Billion |
Base Year | 2020 |
Historical Period | 2017 to 2019 |
Forecast Period | 2021 to 2027 |
Revenue Growth Rate | CAGR of 8.1% from 2021 to 2027 |
Number of Pages | 212 |
Number of Tables | 362 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
Segments covered | Type, End User, Region |
Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
Growth Drivers |
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Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. APAC region would exhibit a promising growth rate during the forecasting period. This is attributed to the growing requirement to track network violations and offenses among the government and public sectors, as these two aspects are responsible for many cyber-attacks.
Free Valuable Insights: Global Router Market size to reach USD 25 Billion by 2027
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd., Eero LLC. (Amazon.com) and Cisco systems Inc. are the forerunners in the Router Market. Companies such as Belkin International, Xiaomi are some of the key innovators in Router Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ASUSTeK Computer Inc., Belkin International Inc. (Foxconn), Cisco Systems Inc., D-link Corporation, Eero LLC. (Amazon.com), Huawei Technologies Co., Ltd., Netgear, Synology Inc., TP link Technologies Co. Ltd., and Xiaomi.
By Type
By End User
By Geography
The router market size is projected to reach USD 25 billion by 2027.
Massive demand for high-speed internet connectivity among consumers are driving the market in coming years, however, high installation cost have limited the growth of the market.
ASUSTeK Computer Inc., Belkin International Inc. (Foxconn), Cisco Systems Inc., D-link Corporation, Eero LLC. (Amazon.com), Huawei Technologies Co., Ltd., Netgear, Synology Inc., TP link Technologies Co. Ltd., and Xiaomi.
In 2020, the North American region emerged as the leading region in the router market and the region is likely to witness a similar kind of trend even during the forecasting period.
The wireless segment procured the maximum revenue share of the router market in 2020. Moreover, the segment is likely to showcase the highest growth rate during the forecasting period.
The healthcare segment would showcase the highest growth rate during the forecasting period. This is accredited to the growing requirement for faster internet connectivity among the healthcare industry to examine massive volumes of electronic medical records.
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