Router and Switch Market - By Technology, By Product, By Service, By Network Type, By End Use & Forecast, 2025 – 2034

Router and Switch Market Size

The global router and switch market was valued at USD 54.4 billion in 2024 and is anticipated to grow at a CAGR of over 6.6% between 2025 and 2034. The growth of router and switch industry is attributed to factors such as the growing demand for high-speed connectivity and adoption of cloud computing.
 

The increasing adoption of cloud computing is driving growth in the router and switch industry, due to growing demand for scalable and high-performance networking. According to European Commission, in 2023, 45.2% of EU enterprises purchased cloud computing services. The highest shares of enterprises that purchased various computing services were registered in Finland (78.3%), Sweden (71.6%), Denmark (69.5%) and Malta (66.7%).
 

Cloud environments produce huge volumes of data traffic, making it necessary for enterprises to invest in routers and switches that manage high-bandwidth workloads with low latency and maintain seamless connectivity. As more workloads are being migrated to the cloud, businesses demand very advanced networking equipment capabilities such as sophisticated traffic management, load balancing, and quality of service (QoS).
 

Router and switch manufacturers must focus on the development of high-performance, scalable networking solutions that support growing cloud adoption. Advanced capabilities such as traffic management, load balancing, and QoS will help capture the share of market as the enterprises extend their cloud adoption into Europe and around the globe.
 

The surge in online shopping and high-definition streaming services such as Netflix, Amazon Prime, etc has led to growing demand for high-speed internet. For instance, in 2024, International Telecommunication Union (ITU) reported that 68% of the global population uses the internet, a significant rise from 53% of global user in the year 2019. This demand for data consumption has made service providers boost their network infrastructure, and this, in turn, has led to increased investments in advanced routers and switches.
 

Router and switch manufacturers should come up with high-speed, high-capacity network solutions to accommodate the data consumption that will be rising from online shopping and HD streaming. The expansion of global internet usage will require high quality network performance by service providers.
 

Router and Switch Market Trends

• The growing trend of IoT and smart devices demands a robust network infrastructure, thus compelling the usage of modern routers and switches. The applications on these IoT devices are data dependent, and these need low latencies to communicate & perform. The advanced routers and switches ensure a robust network connection allowing seamless integration of devices.
   
• With the growth of the hybrid and remote work models in businesses, there is a greater demand for a network solution. Such work models provide employees with access to the organizational network remotely. Routers and switches also help employees in working by offering a fast and secure network so that data flow will be smooth without any hindrances.
   
• There is an emerging trend toward expanding data center infrastructure to satisfy demands for cloud computing, AI workloads, and big data analytics. For instance, in March 2024, Pulsant invested over USD 5.7 million to expand its data centre in UK. This results in an increased need for high-speed low-latency switches and routers with 400G and 800G capacities to process enormous volumes of traffic in distributed cloud environments. It further creates the need for faster speed and capacity switches and routers.
   
•  The adoption of AI across various industries that rely on high-speed networking and advanced 5G technologies for complex data processing is one of the key trends. There is a high volume of data generated by applications of AI, which needs to be processed, transmitted, and analysed effectively. These applications create a need for high-speed connectivity and low latency and intelligent network management through advanced routers and switches.
   

Router and Switch Market Analysis

Based on technology, the market is bifurcated into wired (ethernet, fiber), wireless (wi-fi, 5G), and hybrid.  
 

• The wireless (wi-fi, 5G) segment is anticipated to be the fastest-growing segment with a CAGR of over 7.9% during the forecast period. The wireless network technology allows users to connect from the range, without a physical connection. This network technology also provides users with instant connectivity making it ideal for temporal events. Moreover, it provides ease of installation and lower setup cost increasing its adoption across various industries.
   
• The wired segment dominated the market and accounted for USD 23.18 billion in 2024. The wired network provides improved speed and better security with the integration of security applications and firewall configured within the network, thus further boosting the demand for the wired networks solutions.
   
• The hybrid network segment is growing significantly and is expected to reach USD 25.18 billion by 2034. Global transition towards remote working and the high demand for distributed teams have accelerated the adoption of hybrid networking solutions. As the number of companies deploying cloud-based collaboration tools and VPNs is growing, it demands routers and switches that provide high-performance connections that are also secure between on-premises offices, remote workers, and the cloud. Hybrid networks make it easy to communicate between such diverse environments while ensuring performance, security, and access control to employees across different locations.
   

Based on end-users, the router and switch market is categorized into residential, commercial, industrial, government/public sector, education, service provider networks, and others.
 

• The residential segment dominated the market and accounted for 32.4% of the total market share in 2024. With growing consumer preference towards high-speed networking and fast adoption of IoT devices, there is an upsurge in the market for the residential sector. These devices provides the consumer with seamless connectivity among various smart devices and shares a single internet connection with multiple devices.
   
• The commercial segment accounted for USD 10.95 billion in 2024. Commercial businesses across sectors are adopting digital transformation strategies . Such strategies demand robust, scalable, and secure network infrastructure. As organizations digitize, they need routers and switches to connect employees, devices, and applications in a way that is fast, secure, and reliable. The increasing adoption of cloud-based tools, CRM software, ERP systems, and collaboration platforms has created a need for high-performance commercial networking equipment.
   
• The industrial segment is anticipated to reach USD 13.03 billion by 2034. One of the key growth drivers for the industrial segment is the growing number of applications for Industrial IoT. IoT allows industries to gather and interpret data collected by their connected devices and machines toward perfecting operations, optimizing maintenance cycles, or even enhancing safety. Routers and switches are required for the management of such enormous amounts of data created by these networked devices while ensuring secure and low-latency communication between the devices, systems, and the remote-control centre. This creates an opportunity in the industrial sector.
   
• The government/public sector is projected to achieve USD 4.32 billion by the year 2034. Governments worldwide are making investments in smart city technologies in order to improve the living in urban areas, increase sustainability, and optimize management in cities. These include IoT devices, sensor networks, and cloud platforms that require high-performance networking solutions to be used seamlessly by such technologies. Routers and switches play an important role in handling the traffic developed by data inside these devices in order to support reliability and data analysis in real time.
   
• The rise of smart city technologies is increasing demand for public sector governmental networking equipment to support the smart transportation systems, environmental monitoring, public safety, and other critical services.
   
• The education segment accounted for 13.4% of the total market share in 2024. There is a growing need for digital learning solutions in educational institutions, like online courses, e-learning platforms, and virtual classrooms, that require strong network infrastructure. Thus, schools, colleges, and universities need high-performance routers and switches to ensure seamless video streaming, cloud-based applications, and interactive digital tools.
   
• The service provider network segment is growing significantly and is expected to reach USD 9.81 billion by 2034. The expansion of cloud services and deployment of 5G model fuels the demand for router and switch, as these provide reliable and secure network.
   

Based on the network type, the router and switch market is categorized into local area network (LAN), wide area network (WAN), metropolitan area network (MAN), storage area network (SAN) and others.
 

• LAN network accounted for USD 20.5 billion in 2024. With rapid adoption of IoT devices and the consumer preference towards high-speed connectivity, LAN network is growing significantly. These LAN network connects the device with a smaller radius, such as home or office and are often cost efficient compared to other networks.
   

• WAN network accounted for USD 17.8 billion in 2024. Various organisations are adopting cloud computing technologies and are shifting towards cloud technology. Therefore, they require secure and efficient long-distance networking creating a demand for WAN network solutions.  
   
• MAN networks is expected to reach 20.5 billion USD by 2034. With government investment in smart city initiative and growth adoption of 5G, their demand is soaring high. These networks connect various LANs found within a region and ensure an excellent level of connectivity with little latency.
   
• SAN network is forecasted to will reach more than USD 7 billion by 2034. The expansion of AI alongside cloud storage services depends heavily on SAN network architecture. This network connects to storage servers with high-speed connectivity. The advanced functionality combined with its ability to process and store large amounts of data makes SAN networks important.
   

Based on the product, the router and switch market is categorized into internet exchange router, service provider core router, multiservice edge router, enterprise router, home/small office routers, ATM & ethernet switch, data centre switch and others.
 

• The internet exchange router accounted for USD 2.52 billion in 2024. They vary the flow of data from one network to other connections and are therefore important for seamless communication within the networks. With consumers increasingly adopting smart devices and high speed internet, the need for these routers is expected to rise considerably.
   
• The service provider core router is anticipated to reach USD 15.88 billion by 2034. The expansion of high-speed connectivity and the deployment of 5G networks are the key factors driving the service provider core router market. These routers handle complex data and offer telecom operators to manage their core networks effectively, ensuring enhanced connectivity for consumers.
   
• The multiservice edge router is anticipated to grow at a CAGR of over 5.7% during the forecast period. These router plays a crucial role for managing traffic at the provider’s end. The increasing government initiatives and smart city projects further fuel the growing demand for multiservice edge routers.
   
• The enterprise router accounted for USD 6.6 billion in 2024. The growth of hybrid work environment and cloud-based storage solutions leads to an increasing demand for enterprise class routers. Businesses are moving towards AI and Cloud-based automation technologies, where the requirement of secure connectivity routers increases.
   
• The home/small office routers are anticipated to reach USD 16.8 billion by 2034. The rapid advancement of connected smart devices at household is driving the growth of home/small office routers, as this router provides multiple device connections. The rising trend of remote work model and online learning are also significant factors driving the growth of the market.
   
• The ATM & ethernet switches accounted for USD 3.6 billion in 2024. ATM & ethernet switches are witnessing the demand from many enterprises who are adopting high-speed connectivity. These are a cost-effective solution to ensure low latency and secure networking for various enterprises, and thus are ideal among the data reliable industries.
   
• The data centre switches is anticipated to reach USD 25 billion by 2034. The advancement in IT industries is driving significant growth of data centre switches, as these switches facilitate high speed data transfer between and within the data centres.
   

Based on the service, the router and switch market is bifurcated into network design and implementation, network management and monitoring, network security services, network optimization and troubleshooting, broadband remote access server (BRAS), ethernet, internet data center/collocation/hosting, and others.
 

• The network design and implementation service accounted for USD 17.5 billion in 2024. This segment is expanding owing to the rise in the sophistication of the network infrastructure as organizations start adopting new technologies such as cloud computing, Internet of Things and 5G.
   
• The market size of network management and monitoring service is projected to exceed USD 24.7 billion by the year 2034. The growth of this segment is attributed to the growing demand for visibility and proactive maintenance of the network in real time to guarantee network uptime and security. The development of hybrid and multi-cloud architectures has made it imperative for organizations to invest in advanced network management and monitoring solutions to enhance efficiency while minimizing operational risks.
   
• The network security services is anticipated to reach USD 15.2 billion by 2034. The increasing frequency of cyber-attacks coupled with an increase in the number and types of security threats is resulting in an increased demand for network security services. Enterprises that have a focus on protecting sensitive data and complying with regulations are adopting firewalls, intrusion detection systems, and VPNs, and thus growing this segment.
   
• The network optimization and troubleshooting service accounted for USD 6.1 billion in 2024. Advanced streaming and cloud services alongside the heightened intricacy of networks create an environment where optimized performance and troubleshooting services are essential to meeting operational standards.
   
• The broadband remote access server (BRAS) is anticipated to grow at a CAGR of over 4.4% during the forecast period. As telecom operators increase broadband services to meet the growing internet usage and the demand for high-speed access, the need for BRAS solutions is on the rise.
   
• The ethernet service accounted for USD 3.9 billion in 2024. As organizations and service providers have the need to transfer data much faster, Ethernet services offer better speeds than the traditional networking solutions. Enterprises upgrading to Gigabit and 10/40/100 Gbps Ethernet require more routers and switches with these services.
   
• The internet data centre/collocation/hosting service is anticipated to reach USD 3 billion by 2034. This segment is growing because of the increase in data production and cloud utilization, as companies are purchasing data centre solutions for their storage and computing needs.
   

The North American router and switch market is projected to grow at a CAGR of over 6.8% with revenues expected to surpass USD 40.1 billion by 2034.
 

• The U.S. market is anticipated to grow at a CAGR of over 6.6% during the forecasted period. The growth of market in U.S. is attributed to factors such as technological advancement in network infrastructure and increasing demand for high-speed internet. According to the report published by Pew Research Centre, 96% of the U.S. adults uses the internet.
   

• In 2024, The market in Canada was valued at USD 6 billion. The router and switch’s market within Canada is strengthened by policies and increased acceptance of hybrid and remote work settings. According to a report published by Government of Canada, the government expects to have 98% of Canadians connected to the internet by 2026. At present, 90% of Canadians already have access to high-speed internet.
   

The router and switch market in Europe accounted for USD 11.4 billion in 2024 and is expected to experience significant growth from 2025 to 2034.
 

• The UK market is projected to grow at a CAGR of over 6.2% by 2034. The increased demand of the market in UK can be attributed to the increased adoption of cloud computing and enhanced focus on broadband services expansion in UK.
   
• The market in Germany accounted for USD 3.3 billion for 2024. In Germany, high industrialization together with a stress on digitalization, drives demand for a router and switches. For instance, In June 2023, Deutsche telekom and Ericsson launched network slicing solutions. These solution assists organization in maintaining end to end network slices enhancing security.
   
• France market is growing significantly with a CAGR of over 5.9% during the forecasted period. Expansion of France's cloud computing resources due to development in the financial industry has increased adoption of computer technology. These technologies require a high speed and secure network for processing highly complex data which drives the demand for advanced networking solutions such as switches and routers.
   
• The markets in Italy have a projected estimation of USD 1.8 billion by 2034. Various government policies, as well as industry competition, provide support for Italy’s market. For instance, in November 2024 Telecom Italia spent over USD 130 million towards modernizing the cloud infrastructure and constructing a new building.
   
• Spain market accounted for USD 0.9 billion in 2024. Various smart city projects around Barcelona and Madrid, is fuelling the growth of router and switch industry. The market is further supported by government initiatives. For instance, a Spanish organization, Telefonica provided networking solution and was awarded for its innovation for the year 2023 – 2024.
   

The Asia-Pacific router and switch market is anticipated to witness lucrative growth at a CAGR of over 7.6% between 2025 – 2034.
 

• By 2034, the market in India anticipated to reach USD 6.4 billion. The growing demand for router and switch is supported by the rapid digitalization of the country’s economy along with several government initiatives.
   
• China market is projected to reach USD 12.7 billion by 2034. The router and switch industry in China is strongly supported by government and local enterprise. With the expansion of 5G networks, the router and switch industry is growing significantly.
   
• Japan market is expected to grow at a CAGR of over 6.5% from 2025 to 2034. The smart city initiative in the country has presented many opportunities in the area of router and switch segment. With the advancement in Japan, the need for safe and dependable network solutions considerably boosts the router and switches market.
   
• In 2024, routers and switches market contributed to a net worth of USD 1.1 billion in ANZ. The market is growing for routers and switches in the ANZ region due to the accelerated digitalization and demand for cloud and high-speed internet. Companies are building out their network infrastructure for 5G, IoT, and AI. The growing concentration of data centres in the region and the increasing adoption of smart cities, structures the advanced networking solutions market.
   
• South Korean router and switch industry is anticipated to grow at a CAGR of over 6.1% by 2034. Major players’ continuous advancement in digital infrastructure and innovation in 5G networks fuel the demand for router and switch.
   

In 2024, the Middle East and Africa router and switch market size was USD 1.4 billion which is expected to grow during the forecast period at a CAGR of 5.9%.
 

• The switch and router market for the UAE is expected to develop at over 6.5% CAGR by 2034. UAE continues to benefit from the various smart city projects that intend to boost connectivity.
   
• Saudi Arabia market accounted for USD 0.4 billion in 2024. The market is driven by government initiatives to increase the economy through technology. Increased investments in digital infrastructure are boosting demand for networking solutions that provide enhanced connectivity.
   
• The South African market is anticipated to grow at a CAGR of over 6.3% by 2034. The South African market is constantly focusing on improving the digital infrastructure. As the internet continues to penetrate, there is a growing demand for the market.
   

The router and switch market in Latin America is growing significantly and is expected to reach USD 7.3 billion by 2034 with a CAGR of over 4.0% during the forecast period.
 

• Brazil router and switch industry accounted for USD 1.9 billion in 2024. The market in Brazil has support from programs focused on improving the digital infrastructure and ensuring cyber security. With the rising demand for a stronger network, the demand for routers and switches is set to increase.
   
• The market in Mexico is growing at a CAGR of 4.7% during the forecast period. Mexico has experienced growth in internet adoption, attributed to government policies and private investments in fiber-optic and broadband networks. This demand for faster connectivity from the business and consumer sectors has accelerated the demand for advanced routers and switches that would support increasing network traffic.
   

Router and Switch Market Share

The router and switch industry is highly competitive. Cisco Systems Inc. and Huawei Technologies Co. Ltd. dominated the market capturing significant market share of over 20%. The players in this market compete with one another through technology advancements, price differentiation, and geographical expansion. Key players are increasing their research and development budgets to remain competitive in the market. Partnership and merger & acquisitions are some of the common strategies adopted by major players to gain market share and remain competitive in the market.
 

Prominent players are forming strategic alliances to co-develop cost effective solutions to meet the needs of different industries. Companies are also strengthening their foothold in developing regions like APAC and Latin America. By targeting next generation technologies such as edge computing and cloud-native architectures, these companies position themselves at the forefront of the highly competitive and constantly changing network industry.
 

Cisco Systems has a strong position in the networking industries due to its unmatched functionality and security capabilities in their products. Cisco is ahead of its competitors with integrated secured networking solutions which are scalable and customized for different sectors.
 

Huawei has positioned itself in the router and switch industry. It is well distinguished by its ability to provide effective solutions in 5G, cloud computing, as well as network virtualization. Furthermore, Huawei is able to offer these improved networking products at reduced prices due to its relatively low expenditures on marketing and high investments in research and development. Huawei’s market business strategy is focused on building strong relations with local governments and enterprises that enhances its competitiveness in the global networking market.
 

Router and Switch Market Companies

Some of the prominent market participants operating in the router and switch industry include:

• Arista Networks
• Cisco Systems, Inc.
• Dell Technologies Inc.
• Hewlett Packard Enterprise
• Huawei Technologies Co., Ltd.
• Juniper Networks
• Nokia Networks
   

Router and Switch Industry News

• In November 2023, Moxa introduced a new generation of industrial router, EDR-8000. These router aims to provide a secure connection to various organizations by combining firewall, NAT, VPN, and Layer 2 switches, and therefore reducing the threats to cyberattacks.
   
• In February 2024, Huawei launched an aggregation router. This newly launched router NetEngine 8000E, is a wide-area network router and aims to provide ultra-fast connectivity and support various interfaces.
   
• In August 2023, Netgear introduced a new line of routers for small to mid scale businesses, PR60X pro. This router provides fast speed and cloud management supporting 10G broadband speeds.
   

The router and switch market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion) from 2021 to 2034, for the following segments:

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Market, By Technology

• Wired (Ethernet, Fiber)
• Wireless (Wi-Fi, 5G)
• Hybrid

Market, By Product

• Internet exchange router
• Service provider core router
• Multiservice edge router
• Ethernet service edge router
• Enterprise routers
• Home/small office routers
• ATM & ethernet switch
• Data center switches
• Others

Market, By Service

• Network design and implementation
• Network management and monitoring
• Network security services
• Network optimization and troubleshooting
• BRAS (broadband remote access server)
• Ethernet
• Internet data center/collocation/hosting
• Others

Market, By Network Type

• Local area network (LAN)
• Wide area network (WAN)
• Metropolitan area network (MAN)
• Storage area network (SAN)
• Others

Market, By End Use

• Residential
• Commercial
  • BFSI
  • Healthcare
  • Retail
  • IT & ITES
  • Others
• Industrial
  • Telecommunication
  • Manufacturing
  • Energy & utilities
  • Transportation & logistics
  • Others
• Government/public sector
• Education
• Service provider networks
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA