Global Router and Switch Market - Forecasts from 2023 to 2028

The global router and switch market is expected to grow at a CAGR of 4.88%, from an estimated market size of US$39.322 billion in 2021 to US$54.876 billion in 2028.

It refers to the industry involved in manufacturing, distributing, and selling network routing and switching equipment. Routers and switches are crucial components of computer networks, allowing devices to communicate with each other and share resources. The increasing demand for high-speed, reliable, and secure networking solutions drives the market for routers and switches. In addition, as more devices become connected to the internet and more data is transmitted, efficient and effective network infrastructure becomes increasingly important. As a result, the router and switch market is expected to grow in the coming years, driven by the increasing adoption of cloud computing, the Internet of Things (IoT), and other emerging technologies. Additionally, the growing need for network security and the rising complexity of network infrastructures is expected to drive demand for more advanced routing and switching equipment.

The global router and switch market can be segmented based on the product into Internet Exchange Router, Ethernet Service Edge Router, ATM, Switch, Multiservice Edge Router, and Service Provider Core Router. Multiservice Edge routers are designed to provide multiple services over a single network. Service providers typically use them to deliver voice, video, and data services to customers, for instance. In addition, OnePlus has announced its Hub 5G Router, slated for a July 2023 launch. The company teased the router at its Cloud 11 event, revealing key specs, including WiFi 6 connectivity and support for 5G/4G SIM cards.

The primary factor predicted to drive the growth of the global router and switch market is the growing high-speed connectivity. As businesses and organizations rely more heavily on digital processes, there is an increased need for large volumes of data to be transferred quickly and efficiently. Router and switch solutions provide the necessary infrastructure for high-speed data transfer and seamless connectivity across different devices and networks. Furthermore, with the growth of cloud-based services, there is a growing need for networking solutions that can support these services. In addition, the IoT is driving the need for high-speed connectivity as more and more devices are connected to the internet. For instance, HMS Networks released the world's first commercially available industrial 5G router in 2021. The Wireless Router 5G is optimized for private industrial networks and supports Ericsson Industry Connect 5G networks. It was developed by HMS Networks' technology initiative "HMS Labs" and allows early adopters of 5G to try out the new technology.

Moreover, the need for improved network efficiency is one of the key driving agents of the global router and switch market. This is because organizations are increasingly relying on technology for their operations, and any downtime or network issues can result in lost productivity and revenue. Furthermore, as organizations grow and their network requirements change, they need networking solutions that can scale to meet their needs. Router and switch solutions provide the necessary infrastructure to support network scalability, enabling organizations to grow and expand their operations without worrying about network issues. In addition, with the increasing threat of cyber attacks, network security has become a top priority for organizations. Router and switch solutions help to secure networks by implementing firewalls, intrusion detection systems, and other security measures to protect against cyber threats.

The service provider core router market is anticipated to expand owing to the increasing 5G and adoption of new & advanced technologies such as IoT, AI, & ML coupled with the growing smartphone penetration.

Based on product type, the global router and switch market is segmented into internet exchange routers, ethernet service edge routers, ATM switches, multiservice edge routers, and service provider core routers. Service provider core routers are devices designed to operate the core network of the Internet. They are often high-performance since they are intended to serve as the foundation of your network and carry out the bulk of data transport. These types of routers are used by commercial, government, academic, and other high-capacity network centers. The growing penetration of high-speed internet in many parts of the world is considered one of the key factors propelling the adoption of core routers. However, the primary factor that has led to the deep penetration of the Internet among the general population is the rapid increase in smartphone users resulting from the burgeoning demand over the past decade, specifically in developing economies.

Companies are investing in major market activities such as product launches, developments, and collaborations to boost the adoption of core routers.

In November 2022, Huawei Consumer Business Group (BG) launched the new and very powerful HUAWEI WiFi AX3 (Quad Core) router unit, strengthening compatibility with the WiFi 6 standards. As a result, a ground-breaking technological breakthrough has been created to provide seamless chip-level collaboration between routers and numerous other devices by using Huawei's extensive connection knowledge and acknowledging their significant contribution to the formulation of the WiFi 6 standards. Combined with Huawei devices, this exceptional feature enables the HUAWEI WiFi AX3 (Quad Core) to produce a lightning-fast, powerful WiFi 6 Plus connection.

North America is one of the largest markets for routers and switches due to the high adoption of advanced technologies and the presence of major players in the region.

Based on geography, the global router and switch market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. North America has been at the forefront of adopting advanced technologies such as 5G, SDN, and NFV. These technologies require high-performance routers and switches that can handle large volumes of data traffic, increasing demand for advanced networking solutions. According to the US Federal Communications Commission (FCC), the number of 5G cell sites in the United States increased by 62% between 2019 and 2020, highlighting the increasing adoption of advanced networking technologies. In addition, the IT sector in North America is growing rapidly, driven by increasing investments in cloud computing, cybersecurity, and data analytics. This has led to increased demand for networking solutions, such as routers and switches, that can support these technologies. The Canadian government has announced investments of up to CAD 2.75 billion in the digital infrastructure sector, including funding for developing high-speed internet networks and data centers, which is expected to drive the demand for networking solutions in the country.

In Europe, the telecom and IT industries dominate the market for routers and switches. However, the increasing adoption of 5G technology and the growing demand for network virtualization and software-defined networking (SDN) solutions are expected to drive market growth in this region. Moreover, the European Union's Digital Single Market initiative aims to create a unified digital market across Europe, which is expected to boost the demand for advanced networking solutions in the region.

In the Asia-Pacific region, the router and switch market is driven by the increasing number of internet users and the growing demand for high-speed networking solutions. Moreover, the rapid adoption of cloud computing, IoT, and AI technologies in countries such as China and India is expected to further propel market growth in this region.

Market Segmentation:

By Product Type

• Internet Exchange Router
• Ethernet Service Edge Router
• ATM Switch
• Multiservice Edge Router
• Service Provider Core Router

By End-User Industry

• Travel and Transport
• Communication and Technology
• Energy and Power
• Military and Defence
• Manufacturing
• Healthcare
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• Australia
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others