Global router and switch markets are expected to reach USD 41 billion in 2022. This industry is set for a quantum shift due to the increased use of high-speed Gigabit Ethernet and convergence of residential and business networks. Growth is expected to be driven by increasing demand for internet-enabled products, expanding cloud networking and rising adoption of virtualized tech. The demand will rise due to the increasing use of Wi-Fi technology as well as the growing demand for enterprise WLAN equipment.
U.S. switch and router market by product, 2012-2022 (USD million)
As operators build faster networks and users add more devices to their mobile networks, mobile data traffic will explode in the next six-years. This increase in demand can be attributed mainly to the rise in smartphone usage and the proliferation of faster networks like 3G/4G or LTE around the world.
The traditional hardware-based players will face a challenge from the growing anticipation of a shift in demand towards software-based solutions. Cloud computing solutions are also driving this industry trend. This is a transition that allows for flexible, application-driven customization of the network infrastructure.
The development of high-end products for process control and ease-of-use has been a result of the increasing demand for R&D. This has significantly increased the number of advanced bandwidth IP routing service options, which will fuel the switch and router industry for the next six-years.
Internet exchange, multiservice edge and Ethernet service edge are key products. Service provider core routers and ATM switch are also key products. These products will be in high demand as carriers are becoming more dependent on Ethernet to transport IP traffic within their networks.
Multiservice edge products are designed to deliver carrier-class services, including voice, video, and interactive data. Converging BRAS and Ethernet aggregation functions on a single platform simplifies and consolidates service provider networks. Multiservice edge devices can support a wide range of exterior and internal gateway-routing protocols, as well as high-performance multicast routing. It can be used in service-routing, edge aggregate, and peering applications that require high-performance IP routing.
The demand for ethernet access services will increase due to the increasing number of businesses that require faster and more cost-effective metro network services to connect branch offices, data centers and workers.
The growing market for e-retailers will offer lucrative opportunities to expand enterprise infrastructure. Wi-Fi hotspots and broadband highways as well as Wi-Fi-enabled stations, Wi-Fi-enabled campuses, and Wi-Fi hotspots are all expected to boost the router/switch market.
The industry mainly includes BRAS, Ethernet aggregation, Ethernet access, and Internet data center/collocation/hosting services. Broadband access aggregation is required to meet rising subscriber demand for high speed services like video-on-demand, multiplayer games, and digital audio.
Ethernet access services allow for a global or regional virtual footprint that provides a consistent and deterministic service to its customers. It reduces the time and cost of reaching end-user customers. It assures consistent delivery and expectation of service.
Internet data center/collocation/hosting is used to house computer systems along with associated components such as storage and telecommunication systems. It provides redundant data communication, backup power supplies, environmental controls, and other security devices. Collocation centers are a type data center service that allows customers to rent bandwidth, space, or equipment.
The collocation center provides high bandwidth and low latency at a reasonable cost. Major customers of the collocation center include web, ecommerce and telecommunications companies, as well as major enterprises that use the facility for disaster prevention and offsite data backup.
In 2014, North America's router and switch market was responsible for more than 35% of the total market. As service providers buy products to meet the increasing demand for data via various LTE-enabled devices, mobile backhaul investments in the U.S. have increased significantly.
Service providers are focusing on increasing fixed broadband traffic and mobile data traffic to upgrade their core networks, mobile backhaul and access in North America.
China's router and switch market is set for massive growth in video and data services for residential and enterprise customers. This is due to growing demand for multi-screen delivery, streaming on-demand, high-definition content and rising use of smartphones and tablets, as well as increasing adoption of cloud-based applications.
The combination of overall weakness in Europe and softness within the public sector vertical are limiting growth. Substitution of lower-end devices will limit the growth of the European industry.
Alcatel-Lucent and Cisco are the top router and switch companies. Juniper Networks and ZTE Corporation are also dominant. For establishing a strong market presence, companies have focused on launching cloud-based solutions. Cisco, for example, launched its WAN optimization platform and cloud-based routing platform called Cisco Cloud Connected Solutions in response to the industry shift. This change will free customers from the responsibility of integrating different systems and enabling more secure service delivery.
b. Global router and switch market was valued at USD 38.4 Billion in 2019, and will reach USD 39.3 Billion in 2020.
What is the growth rate of the switch and router market?b. Global router and switch markets are expected to expand at a compound annual rate of 2.9% between 2015 and 2022, to reach USD 41.0 Billion by 2022.
Which market segment had the largest share of router and switch sales?b. With a 39.1% share in 2019, North America was the dominant market for routers and switches. This can be attributed to increasing investments in mobile backhaul.
What are the major players in the router and switch marketb. Among others, Cisco, Alcatel-Lucent, Huawei Technologies, Juniper Networks, and ZTE Corporation are some of the key players in the router-switch market.
What are the main factors that drive the market for routers and switches?b. The market is growing due to increased use of high-speed Gigabit Ethernet and rising adoption of PoE.
Up Market Research published a new report titled “Router And Switch Market research report which is segmented by Product (Internet Exchange Router, Ethernet Service Edge Router, Service Provider Core Router, Multiservice Edge Router, ATM Switch), by Service (Broadband Aggregation (Broadband Aggregation BRAS), By Players/Companies Cisco; Alcatel-Lucent; Huawei Technologies; Juniper Networks; and ZTE Corporation amongst others”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Router And Switch Market Research Report |
By Product | Internet Exchange Router, Ethernet Service Edge Router, Service Provider Core Router, Multiservice Edge Router, ATM Switch |
By Service (Broadband Aggregation | Broadband Aggregation BRAS |
By Companies | Cisco; Alcatel-Lucent; Huawei Technologies; Juniper Networks; and ZTE Corporation amongst others |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 236 |
Number of Tables & Figures | 166 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Product (Internet Exchange Router, Ethernet Service Edge Router, Service Provider Core Router, Multiservice Edge Router, ATM Switch), by Service (Broadband Aggregation (Broadband Aggregation BRAS).
Router And Switch Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Router And Switch Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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