Global Router And Switch Market Size, Share & Industry Trends Analysis Report By Product, By Service (Internet Data Center/Collocation/ Hosting, BRAS, Ethernet Aggregation, Ethernet Access), By Regional Outlook and Forecast, 2023 - 2029

Global Router And Switch Market Size, Share & Industry Trends Analysis Report By Product, By Service (Internet Data Center/Collocation/ Hosting, BRAS, Ethernet Aggregation, Ethernet Access), By Regional Outlook and Forecast, 2023 - 2029

The Global Router And Switch Market size is expected to reach $75.1 billion by 2029, rising at a market growth of 7.1% CAGR during the forecast period.

Routers and switches are essential components of any network, and they now play more than just an interconnection role. Routers and switches have developed extremely intelligently, and now low- and mid-range solutions contain functionality previously only found in business data centers. Along a network, routers forward data packets. Where two or more networks converge is where routers are positioned. A switch is a network device that joins devices and employs packet switching to send or receive data.

A router is a networking device that operates at the third layer of the ISO-OSI architecture or the network layer. These devices have several ports. It creates a straightforward connection across the networks, enabling data to flow between them. Both LAN and MAN use routers to transfer data in the form of packets. It operates at network layer three and is utilized by MANs, LANs, and WANs. It keeps track of and stores IP addresses on its own.

A switch is an object used for point-to-point communication. In basic terms, it acts as a bridge to better connections. It is a particular type of gadget that sets up and shuts down connections in accordance with the conditions required at the moment. Numerous functions are included, including flooding, filtration, and frame transfer.

While switches are solely used to connect devices, routers are required for an Internet connection. Homes and small workplaces require routers to connect to the Internet, but most don't require network switches unless they need a lot of ethernet ports. However, with several hundred computers, huge workplaces, networks, and data centers typically do need switches.

COVID-19 Impact Analysis

The pandemic-related economic downturn decreased IT spending, slowing new networking hardware uptake. In addition, the outbreak hastened the transition to cloud services. As a result, demand for conventional routers and switches and rising demand for cloud-based networking solutions are decreasing. The pandemic altered how organizations needed to network, which increased the demand for products that support remote work. Overall, the COVID-19 pandemic has had favorable and unfavorable consequences on the market, changing the need for various forms of networking hardware. As a result, the router and switch market benefited from the widespread pandemic.

Market Growth Factors

Rising need for bandwidth in data centers

Analytics may be a significant growth opportunity for the routing sector in the cloud-based era. The large amount of private information in analytics necessitates servers with enhanced connectivity and performance. As all servers are connected to the switch in the same rack using the top-of-rack (ToR) connectivity design, the complexity of the cabling is minimized. Additionally, with the aid of this architecture, the network that utilizes 10 Gigabit Ethernet (GbE) capacity can be changed in the future with the least expense and cabling alterations. Many large-scale clients use high-bandwidth switches to solve the interconnection problem between thousands of servers. This market for router and switch is predicted to grow during the projection period.

Advent of 5G across the globe

The major ethernet switch and router manufacturers are increasingly emphasizing the launch of new products. Ethernet switches and routers will become more popular as 5G expenditure increases. Open switches are yet another popular item right now. Only original device manufacturers' (ODMs') hardware for switches is included in open Ethernet switches. Without any operating systems installed, they are marketed to end customers. These are the main drivers of the switch and router market's expansion over the predicted period.

Market Restraining Factors

Reluctant to switch from legacy systems

Interoperability concerns significantly hamper the expansion of the router and switch market. Building network infrastructure is challenging, and installing it requires carrying out several intricate tasks that are challenging to do on the ground. While developing network infrastructure for SMEs, complexity rises. End users rely largely on the reliable network infrastructure to manage their daily tasks. Any operations disruptions hamper the end users' workflow. Thus, high-speed connectivity is required, which can be difficult in some important circumstances for routers and switches.

Product Outlook

Based on product, the router and switch market is characterized into internet exchange router, service provider care router, multiservice edge router, ethernet service edge router, and ATM & ethernet switch. The multiservice edge router segment covered a considerable revenue share procured a promising growth rate in the router and switch market in 2022. Edge routers are created to connect to a larger internet. Edge routers are employed at the network's edge to connect the private and public networks. Wide area networks (WAN) and the internet are the main demarcation points where the edge router is used. WANs are networks that link numerous organizations together but are not directly connected to the internet.

Service Outlook

On the basis of service, the router and switch market is classified into BRAs, ethernet aggregation, ethernet access, internet data center/collocation/hosting, and others. In 2022, the internet data center/collocation/hosting segment witnessed the largest revenue share in the router and switch market. The segment's growth results from the growing demand for great performance, highly scalable, and secure network solutions. Along with the rising prevalence of connected devices and growing reliability over cloud-based services, the demand for routers and switches is increasing to handle the high volume of data traffic. As a result, many manufacturers create routers and switches that can support 10-gigabit and multi-gigabit ethernet and safety measures like firewalls and VPNs to fulfill these needs.

Regional Outlook

Region wise, the router and switch market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region dominated the router and switch market with the maximum revenue share. The quick adoption of cutting-edge technologies by local multinational corporations is to due to the rapid growth of the regional market. Growing fixed broadband traffic and expanding mobile data traffic push service providers in North American regions to enhance their main networks, mobile backhaul, and access.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Cisco Systems, Inc., Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Fortinet, Inc., Ribbon Communications, Inc., Extreme Networks, Inc., Dell Technologies, Inc., ADTRAN, Inc., Actelis Networks, Inc. and ALE International S.A.S.

Strategies deployed in Router and Switch Market

Apr-2023: Ribbon Communications teamed up with Valley Telecommunications, a telephone, television, and internet service provider. Following this collaboration, Ribbon would help Valley Telecommunications in upgrading its network and rising its bandwidth ten times for businesses and residents. The network upgrade uses Muse Domain Orchestration-managed Neptune IP Routing and Apollo Optical Transport from Ribbon.

Feb-2023: Dell Technologies came into partnership with HCLTech for offering network modernization solutions to communication service providers (CSPs) and enterprises. Together, the companies would provide help to CSPs in modernizing their network infrastructure for transforming service delivery and simplifying operations through performing integration services, including implementing engineered telecom cloud platforms, testing, automation, and orchestration.

Sep-2022: ADVA, a division of ADTRAN, released industry’s first pluggable 10Gbit/s demarcation SFP+ device. This new product consumes less than 2.5 watts, doesn't require additional floor space, and is used to enable high-speed demarcation in the field where it is not possible to use any traditional device. This would help the enterprises to offer comprehensive management capabilities that are needed to deliver SLA-based Carrier Ethernet.

May-2022: Cisco Systems signed a Memorandum of Understanding (MoU) with Vietnam Posts and Telecommunications Group (VNPT), a telecommunication company owned by Vietnam Government. Under this MoU, the companies cooperated in designing and introducing a flexible and suitable digital transformation solution to the market, to fulfill the businesses' needs related to digital transformation. In addition, the companies would combine their advantages to develop a next-generation network infrastructure based on software-controlled optical network technology. In the 5G era, this will guarantee service flexibility and provide small, medium-sized, and large organizations with high-quality digital services.

May-2022: Extreme Networks partnered with Verizon Business for developing best-in-class network and connectivity insight solutions for stadiums and large venues across EMEA. Large venues and stadiums can create immersive, next-generation fan experiences while getting network insights for driving better business and operational decisions through utilizing the combination of Extreme's Wi-Fi and Wi-Fi Analytics solutions and Verizon's private 5G solution.

Jan-2022: Cisco made an enhancement to its Catalyst 9000 portfolio, based on the powerful Unified Access Data Plane (UADP) ASIC silicon, by adding the new Catalyst IE9300. The addition would bring improved enterprise-grade switching capabilities to the industrial edge for industries operating in harsh environments and support critical infrastructure such as oil & gas, utilities, rail, and roadways. The Catalyst IE9300 is a feature-rich industrial switch built for OT and IT for automating network operations, bringing zero trust security to operational spaces, and delivering high-port density with switch staking with centralized management and others.

Mar-2021: Cisco acquired Acacia Communications, a Massachusetts-based company. This acquisition would reinforce Cisco’s commitment to optics as a critical building block that would improve the company’s ‘Internet for the Future’ strategy with world-class coherent optical solutions for consumers, further allowing them to address the unprecedented scale of modern IT.

Dec-2020: ADTRAN, Inc. enhanced its NetVanta access routers lineup by expanding its suite to offer more capacity and speed for fiber-based IP connectivity to various organizations and enterprises using them. The new access routers would enable the service provider to bundle and offer competitive business services and address clients' demands for higher bandwidth speeds.

May-2020: ADVA, a division of ADTRAN, launched its new product named FSP 150-XJ128, which offers an easy route to 25Gbit/s connectivity services and is the industry’s first Layer 2 demarcation device. This new product would enable enterprises to expand their networks easily and cost-effectively.

Scope of the Study

Market Segments covered in the Report:

By Product

ATM & Ethernet Switch
Internet Exchange Router
Ethernet Service Edge Router
Multiservice Edge Router
Service Provider Core Router
By Service

Internet Data Center/Collocation/ Hosting
BRAS
Ethernet Aggregation
Ethernet Access
Others
By Geography

North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Companies Profiled

Cisco Systems, Inc.
Telefonaktiebolaget LM Ericsson
Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
Fortinet, Inc.
Ribbon Communications, Inc.
Extreme Networks, Inc.
Dell Technologies, Inc.
ADTRAN, Inc.
Actelis Networks, Inc.
ALE International S.A.S
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