The router and switch market is expected to register a CAGR of 6.5% during 2023–2031. Cloud computing IoT technologies are likely to remain a key trend in the market.
Router and Switch Market Analysis
- Several factors have combined to drive growth in the market for routers and switches, such as technological advancement and shifting needs in terms of networking due to the pandemic, among growing interest in cloud-based solutions. This growth is expected to continue further in the coming years and would hence create opportunities and challenges for the stakeholders associated with the industry.
- Furthermore, network transformation accorded to the changing services and network demand—majorly in inter-data center networks which will boost the growth of the global router and switch infrastructure market. Moreover, innovation in the product is being driven owing to the aggressive investments made by established and new companies in research and development operations.
Router and Switch Market Overview
- Routers and switches are essential networking hardware that serves different functions to ensure communication within and between computer networks. A router serves the function of forwarding data packets from one computer network to another and thus enables the possibility of having many devices sharing one internet connection. It joins several different networks, either in one location or many, and is also critical in securely linking a business to the outside world, thus protecting information from security threats and prioritizing the traffic of devices connected. Routers work on the network layer and are crucial for creating simultaneous connections between independent networks.
- In contrast, a switch refers to a networking device that joins devices together either in a single network or different networks and forwards data packets between and from those devices. Unlike a router, it sends data to just one specific device and not across many different networks of devices. Switches reduce frame collisions in networks by helping to create the collision domain for every network, thereby relieving stress on specific hosts.
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Router and Switch Market: Strategic Insights
Router and Switch Market
-
Market Size 2023
US$ XX Million
-
Market Size 2031
US$ XX Million
Market Dynamics
GROWTH DRIVERS
- Rising Demand for Colocation Data Centers
FUTURE TRENDS
- 5G Expenditure and Open Switches
OPPORTUNITIES
- Cloud Computing and IoT Technologies
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
Product
- Internet Exchange Router
- Service Provider Core Router
- Multiservice Edge Router
- Ethernet Service Edge Router
- ATM & Ethernet Switch
Service
- BRAS
- Ethernet Aggregation
- Ethernet Access
- Internet Data Center/Collocation/ Hosting
- Get Top Key Market Trends of this report.This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.
Customize This Report To Suit Your Requirement
You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities
Router and Switch Market: Strategic Insights
-
Market Size 2023
US$ XX Million -
Market Size 2031
US$ XX Million
Market Dynamics
- Rising Demand for Colocation Data Centers
- 5G Expenditure and Open Switches
- Cloud Computing and IoT Technologies
Regional Overview
- North America
- Europe
- Asia-Pacific
- South and Central America
- Middle East and Africa
Market Segmentation
- Internet Exchange Router
- Service Provider Core Router
- Multiservice Edge Router
- Ethernet Service Edge Router
- ATM & Ethernet Switch
- BRAS
- Ethernet Aggregation
- Ethernet Access
- Internet Data Center/Collocation/ Hosting
- Get Top Key Market Trends of this report.This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.
Router and Switch Market Drivers and Opportunities
Rising Demand for Colocation Data Centers
- The growing demand for colocation data centers by SMEs has largely driven the global router and switch market. This trend is very robust since SMEs are increasing the adoption of colocation data centers more and more, as building an individual data infrastructure is related to high operational costs and complexities.
- Hence, various companies are opting for leasing IT infrastructure as per their requirement, which is further leading to the exponential growth of colocation data centers. This increase in the adoption of colocation data centers by SMEs will boost the utilization of routers and ethernet switches, thus driving the global switch and router market during the forecast period.
5G Expenditure and Open Switches
- 5G, with the growing expenditure, is likely to make ethernet switches and routers more popular. Open switches will also help in the growth of the switch and router market, as they include only hardware from the original device manufacturer of switches. A growing investment in 5G technology is a major reason for the growing popularity of ethernet switches and routers. 5G technology will further drive the need for solid networking infrastructure to back 5G networks with ethernet switches and routers.
- The increased shift in the market towards software-defined networking and network function virtualization is also driving the market. This calls for a hardware component that is flexible and agile to support this technology, thus resulting in a rise in demand for Ethernet switches and routers.
Router and Switch Market Segmentation
Key segments that contributed to the derivation of the router and switch market analysis are product and service.
- Based on the product, the market is divided into internet exchange routers, service provider core routers, multiservice edge routers, ethernet service edge routers, and ATM & ethernet switches.
- In terms of service, the market is segmented into BRAS, ethernet aggregation, ethernet access, internet data center/collocation/hosting, and others.
Router and Switch Market Share Analysis by Geography
- The router and switch market report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South & Central America.
- Each region is further sub-segmented into respective countries. This report provides analysis and forecasts of 18+ countries, covering mechanical keyboards market dynamics such as drivers, trends, and opportunities that are impacting the markets at the regional level.
- Also, the report covers PEST analysis, which involves the study of major factors that influence the router and switch market in these regions.
Router and Switch Market Market Report Scope
Report Attribute
Details
Market size in 2023
US$ XX Million
Market Size by 2031
US$ XX Million
Global CAGR (2024 - 2031)
6.5%
Historical Data
2021-2022
Forecast period
2024-2031
Segments Covered
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
Regions and Countries Covered
North America - US
- Canada
- Mexico
Europe - UK
- Germany
- France
- Russia
- Italy
- Rest of Europe
Asia-Pacific - China
- India
- Japan
- Australia
- Rest of Asia-Pacific
South and Central America - Brazil
- Argentina
- Rest of South and Central America
Middle East and Africa - South Africa
- Saudi Arabia
- UAE
- Rest of Middle East and Africa
Market leaders and key company profiles
Adtran Actelis Networks, Inc. ADVA Optical Networking Cisco Systems, Inc. ALE International Ribbon Communications Operating Company, Inc. Telefonaktiebolaget LM Ericsson EXTREME NETWORKS, INC. Dell Technologies Inc. Huawei Technologies Co., Ltd.
Report Attribute | Details |
---|---|
Market size in 2023 | US$ XX Million |
Market Size by 2031 | US$ XX Million |
Global CAGR (2024 - 2031) | 6.5% |
Historical Data | 2021-2022 |
Forecast period | 2024-2031 |
Segments Covered |
By Product
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
Router and Switch Market News and Recent Developments
The router and switch market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the router and switch market are listed below:
- D-Link, a global leader in networking and connectivity technologies, has announced two new additions to its portfolio of multi-gigabit switches: the 7-Port Multi-Gigabit Unmanaged Switch (DMS-107) and 10-Port Multi-Gigabit PoE Smart Managed Switch (DMS-1100-10TP).
(Source: D‑Link (Europe) Ltd., Press Release, April 2023)
- Cubic Corporation’s Cubic Defense business has launched a new Cisco-powered router and switch module. The M3-SE5 uses the ESR6300 router and ESS3300 switching technologies to deliver high-speed networking capabilities to the tactical edge.
(Source: Cubic, Company Website, October 2022)
Router and Switch Market Report Coverage and Deliverables
The "Router and Switch Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Router and switch market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Router and switch market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Router and switch market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the router and switch market
- Detailed company profiles
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
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The report can be delivered in PDF/PPT format; we can also share an Excel dataset based on the request.
The leading players operating in the market are Adtran, Actelis Networks, Inc., ADVA Optical Networking, Cisco Systems, Inc., ALE International, Ribbon Communications Operating Company, Inc., Telefonaktiebolaget LM Ericsson, EXTREME NETWORKS, INC., Dell Technologies Inc., and Huawei Technologies Co., Ltd.
Cloud computing IoT technologies are likely to remain a key trend in the market.
The global router and switch market is expected to grow at a CAGR of 6.5% during the forecast period 2023 - 2031.
Rising demand for colocation data centers is the major factor driving the router and switch market.
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The List of Companies
1. Broadcom, Inc.
2. Cisco Systems Inc.
3. Huawei Technologies Co., Ltd.
4. Infinera Corporation.
5. Juniper Networks, Inc.
6. NEC Corporation
7. Nokia Ojy
8. Telefonaktiebolaget LM Ericsson
9. Tellabs
10. ZTE Corporation