PUBLISHER: The Business Research Company | PRODUCT CODE: 1409777
PUBLISHER: The Business Research Company | PRODUCT CODE: 1409777
“Router And Switch Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on router and switch market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for router and switch? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The router and switch market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
A router is a networking device that connects various switches and the networks associated with them to form an extensive network. On the other hand, a switch is a networking device that connects different network devices, facilitating the sharing of information and resources within a small business network. The router, in this context, is utilized to distribute or route the internet connection from the modem to all the networking devices.
The primary products within the categories of routers and switches include internet exchange routers, multiservice edge routers, ethernet service edge routers, service provider core routers, ATM switches, and others. An internet exchange router serves as a physical location where Internet infrastructure providers, such as Internet service providers (ISPs) and CDNs, connect with one another. The services provided encompass ethernet aggregation, internet data center/collocation/hosting, ethernet access, and BRAS (Broadband Remote Access Server). The applications of these devices span residential and commercial use.
The router and switch market research report is one of a series of new reports from The Business Research Company that provides router and switch market statistics, including router and switch industry global market size, regional shares, competitors with a router and switch market share, detailed finishing lines market segments, market trends and opportunities, and any further data you may need to thrive in the router and switch industry. This router and switch market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The router and switch market size has grown strongly in recent years. It will grow from $11.36 billion in 2023 to $12.15 billion in 2024 at a compound annual growth rate (CAGR) of 7.0%. The expansion observed in the historical period can be ascribed to the swift increase in internet usage, the expansion of data centers, the growth of telecommunication networks, the evolution of mobile networks, and concerns related to cybersecurity.
The router and switch market size is expected to see strong growth in the next few years. It will grow to $16.24 billion in 2028 at a compound annual growth rate (CAGR) of 7.5%. The anticipated expansion in the forecast period can be credited to initiatives related to smart cities, efforts in digital transformation, the implementation of network virtualization, the flourishing of e-commerce, the prevalence of remote learning, and a focus on environmental sustainability. Key trends expected in this forecast period encompass the rollout of 5G networks, the expansion of edge computing, the shift to Wi-Fi 6 (802.11ax), the adoption of software-defined networking (SDN), the integration of cybersecurity measures, and the utilization of cloud connectivity and hybrid cloud networks.
The anticipated surge in reliance on cloud-based solutions is poised to drive the growth of the router and switch market in the foreseeable future. Cloud-based solutions leverage the Internet to deliver computing resources on demand. Cloud routers play a crucial role in enabling secure, private, and fast connections for cloud service providers. The increasing dependence on cloud solutions is highlighted by a 2021 report from O'Reilly Media, Inc., revealing that 90% of global respondents acknowledged using the cloud in their businesses, with 75% representing various industries. Notably, 67% use a public cloud, and 45% utilize a private cloud. This growing reliance on cloud solutions is a significant factor fueling the expansion of the router and switch market.
The contributing to the router and switch market's growth is the expansion of data centers. These dedicated spaces are essential for assembling, processing, storing, and disseminating vast amounts of data. Routers and switches play a vital role in providing network connectivity, managing traffic, ensuring security, and facilitating scalability and reliability within data centers. Notably, the Korea Data Center Council reported in February 2021 that colocation data centers in the Asia-Pacific region had reached an overall capacity of 430 MW, constituting 11% of the total IT load. Projections suggest a 700 MW expansion in commercial data center IT load in Korea between 2021 and 2023, contributing to 15% of the Asia-Pacific capacity. Consequently, the expanding data center infrastructure is a key driver for the router and switch market.
The prevailing trend in the router and switch market is the increasing emphasis on product innovation. Leading companies in this sector are actively engaged in the development of novel products to fortify their market standing. For instance, in February 2022, Cisco Systems, Inc., a US-based provider of information technology and networking services, introduced the 9000X series of switches. The distinguishing feature of the 9000X series switches lies in their integration of a robust Catalyst switch with Cisco Silicon One, delivering optimal performance, high speeds, and the requisite security for hybrid work scenarios. The introduction of new Catalyst 9000X models expands the switch family, serving as the foundational infrastructure capable of managing 100G/400G network access for campus-wide transitions to hybrid work and branch extension, incorporating zero-trust security and power efficiency.
Prominent players in the router and switch market are strategically focused on launching cutting-edge solutions, including powered router and switch modules, to gain a competitive advantage. These hardware components are designed to augment capabilities and broaden the scope of services. For example, in October 2022, Cubic Corporation, a US-based defense company, unveiled the M3-SE5, a Cisco-powered router and switch module. The M3-SE5 facilitates high-speed networking capabilities at the tactical edge, leveraging the ESR6300 router and ESS3300 switching technology. Users can enhance their existing M3-SE baseband computing and network stacks with the M3-SE5, benefiting from Cisco ESR6300 and ESS3300 high-speed networking capabilities without increasing the form factor. Noteworthy features of the M3-SE5 include a smaller electromagnetic footprint compared to traditional networking devices, resilience to shocks and vibrations, and adaptability to diverse thermal environments. This innovative approach offers ideal flexibility and optimizes the user's system investment.
In March 2021, Cisco Systems, Inc., a US-based provider of information technology and networking services, executed an undisclosed acquisition of Acacia Communications, Inc. This strategic move is anticipated to aid the shift from chassis-based optical line systems to pluggable technology, especially for clients seeking streamlined operations and reduced complexity in managing multiple network layers. Acacia Communications, Inc. is recognized as a US-based provider of high-speed integrated optical interconnect modules.
Major companies operating in the router and switch market report are Cisco Systems Inc., Alcatel-Lucent Enterprise, Huawei Technologies Co Ltd., Juniper Networks, Actelis Networks Inc., Telefonaktiebolaget LM Ericsson, Adtran Inc., Extreme Networks Inc., Force10 Networks Inc., RAD Data Communications Pvt. Ltd., Tellabs Access LLC, Telco Systems, Hewlett Packard Enterprise Development LP, Nokia Corporation, ALE International SAS, Zhongxing Telecommunication Equipment Corporation, Arista Networks Inc., Broadcom Inc., Intel Corporation, Aktino Inc., ADVA Optical Networking SE, MRV Communications Inc., Foundry Networks Inc., Hammerhead Systems Inc., NETGEAR Inc., Datex-Link Corporation, Twisted pair link Technologies Co. Ltd., Belkin International Inc., ASUS Computer International, Buffalo Americas Inc., Linksys Holdings Inc., Ubiquiti Networks Inc., Netis Systems Co. Ltd., Tenda Technology Inc., Synology Inc., Quality Network Appliance Provider Systems Inc., Western Digital Corporation, Seagate Technology LLC, Dell Technologies Inc., Lenovo Group Limited .
North America was the largest region in the router and switch market in 2023. The regions covered in the router and switch market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the router and switch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The router and switch market consists of sales of wired routers, wireless routers, core routers, edge routers, VPN routers, KVM switches, managed switches, and other related products. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.