Global Router And Switch Market Size, Share, Opportunities, COVID-19 Impact, And Trends 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 Defense, Manufacturing, Healthcare, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Dec 2022 Report Code: KSI061610958 Pages: 145

The global router and switch market is estimated to witness a compound annual growth rate of 5.95% during the forecast period to reach a total market size of US$54.769 billion by 2027, increasing from US$36.537 billion in 2020. 

Routers and switches form the basic element of any network. Growing awareness about IP TV, ethernet technologies, and multiservice networking is anticipated to provide the necessary impetus to the demand for routers and switches over the forecast period. Increasing adoption of these products by various verticals on account of higher investments in IoT technologies is also contributing to market growth.

Increasing internet users and adoption of new technology to propel the growth of the market globally

The demand for smartphones has been growing rapidly. According to Ericsson in 2020, the number of smartphone subscriptions across the globe surpassed 6 billion and is expected to grow by hundreds of millions in the next few years further, with China, India, and the United States as the countries with the highest number of smartphone users. This growing demand for smartphones along with advancements in technology is thus expected to boost the growth in the market. The improvement in the outlook of the consumers, working from home, and sustained learning, are some factors that are expected to further propel the sales of smartphones.

The rapid adoption of smartphones and growing technology across the globe are expected to propel the market significantly. For instance, according to the Office for National Statistics of the United Kingdom, 91% of adults in the UK were recorded to be internet users in 2019, up from 90% in 2018, owing to the penetration of smartphones in the country. This penetration has still been on a rise, hence, providing a favorable atmosphere for the growth of this market. Further, the rising demand for high-speed data connectivity for integrated IoT applications, like energy management and smart home products, is likely to augment the adoption of 5G smartphones, thus fuelling the smartphone demand and conversely driving the market. For instance, OPPO India in January 2021, announced its aim to launch more than six 5G-enabled devices in India in the same year, due to 5G-ready and IoT product categories becoming more important for smartphone players in the country.? Further, the Digital India program, which is a flagship program of the Government of India aims at transforming the country into a digitally empowered society and is expected to further. Additionally, in China, the rising smartphone adoption and the availability of 4G have resulted in a spike in mobile internet usage with more than 990 million people using mobile internet services. Thus, this high rate of adoption of smartphones in developed as well as emerging economies is expected to hold the market in good stead due to its major application in new and upcoming technologies.

Competitive Insights

Major companies dominating the router and switch market include Cisco, Huawei Technologies, Juniper Networks, Alcatel-Lucent, and ZTE Corporation. Companies have driven focus on launching cloud-based solutions for establishing a strong presence. For instance, Cisco launched a WAN optimization and cloud-based routing platform for its enterprise, Cisco Cloud Connected Solutions, to address the changing industry trend. This shift is likely to absolve the customer’s responsibility to integrate various systems and enable even more secure service delivery.

Geographical Insights

North America’s router and switch market is expected to account for a dominant market share. Mobile backhaul investments have soared substantially in the United States as service providers purchase products to fulfilling the rising demand for data through varied LTE and 5G-enabled devices. Growing fixed broadband traffic along with inclining mobile data traffic are propelling service providers to the upgradation their core networks, aggregation, mobile backhaul, and access in the US and Canada. Further, the Chinese router and switch market are likely to witness considerable growth of video and data for enterprises and residential customers due to the burgeoning demand for multi-screen delivery, high-definition content, on-demand viewing, growing usage of smartphones and tablets, along with the increasing adoption of cloud applications. However, on the flip side, the overall weakness in the European market coupled with softness in the public sector is likely to act as a restraint for growth.

COVID-19 Insights

The COVID-19 pandemic had a negative impact on the market. The subsequent social distancing measures and mandated lockdowns implemented by the governments across various nations resulted in the slowing down of various industries, which caused a dip in the demand of the market. Another factor that affected the growth of the market was the myths that people had about COVID-19 being further strengthened by the 5G technology. This led to the decimation of many 5G poles across various countries around the world, which caused the market to slow down further.

Global Router And Switch Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$36.537 billion
 Market Size Value in 2027  US$54.769 billion
 Growth Rate  CAGR of 5.95% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Product Type, End-User Industry, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Cisco Systems Inc., Siemens Ltd., Telco Systems, ZTE Corporation, Juniper Networks, Inc., RAD Data Communications Ltd., Huawei Technologies Co., Ltd., Avaya Inc, Phoenix Contact, ADTRAN Inc., ECI Telecom Ltd, Extreme Networks, Inc., Dell, Inc., Nokia Corporation 
 Customization Scope  Free report customization with purchase

 

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 (MEA)
      • Saudi Arabia
      • UAE
      • Isreal
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • Australia
      • South Korea
      • Indonesia
      • Thailand
      • Taiwan
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the router and switch market size by 2027?
A1. The router and switch market is estimated to reach a total market size of US$54.769 billion by 2027.


Q2. What is the size of the global router and switch market?
A2. Router And Switch Market was valued at US$36.537 billion in 2020.


Q3. What are the growth prospects for the router and switch market?
A3. The router and switch market is estimated to witness a CAGR of 5.95% during the forecast period.


Q4. Which region holds the largest share of the router and switch market?
A4. North America is expected to account for a dominant share of the router and switch market.


Q5. What factors are anticipated to drive the In router and switch market growth?
A5. Growing awareness about IP TV, ethernet technologies, and multiservice networking is anticipated to provide the necessary impetus to the demand for routers and switches over the forecast period.


1. INTRODUCTION

1.1. Market Overview

1.2. Covid-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Driver

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. GLOBAL ROUTER AND SWITCH MARKET, BY PRODUCT TYPE

5.1. Introduction

5.2. Internet Exchange Router

5.3. Ethernet Service Edge Router

5.4. ATM Switch

5.5. Multiservice Edge Router

5.6. Service Provider Core Router

 

6. GLOBAL ROUTER AND SWITCH MARKET, BY END-USER INDUSTRY

6.1. Introduction

6.2. Travel and Transport

6.3. Communication and Technology

6.4. Energy and Power

6.5. Military and Defence

6.6. Manufacturing

6.7. Healthcare

6.8. Others

 

7. GLOBAL ROUTER AND SWITCH MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. UK

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Spain

7.4.6. Others

7.5. Middle East and Africa (MEA)

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Isreal

7.5.4. Others

7.6. Asia Pacific 

7.6.1. Japan

7.6.2. China

7.6.3. India

7.6.4. Australia

7.6.5. South Korea

7.6.6. Indonesia

7.6.7. Thailand 

7.6.8. Taiwan

7.6.9. Others

 

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. COMPANY PROFILES

9.1. Cisco Systems Inc. 

9.2. Siemens Ltd.

9.3. Telco Systems

9.4. ZTE Corporation

9.5. Juniper Networks, Inc.

9.6. RAD Data Communications Ltd.

9.7. Huawei Technologies Co., Ltd.

9.8. Avaya Inc

9.9. Phoenix Contact

9.10. ADTRAN Inc. 

9.11. ECI Telecom Ltd 

9.12. Extreme Networks, Inc.

9.13. Dell, Inc.

9.14. Nokia Corporation 

Cisco Systems Inc.

Siemens Ltd.

Telco Systems

ZTE Corporation

Juniper Networks, Inc.

RAD Data Communications Ltd.

Huawei Technologies Co., Ltd.

Avaya Inc

Phoenix Contact

ADTRAN Inc.

ECI Telecom Ltd 

Extreme Networks, Inc.

Dell, Inc.

Nokia Corporation 

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