Router and Switch Market - By Technology (Wired (Ethernet, Fiber), Wireless (Wi-Fi, 5G), Hybrid), By Product, By Service, By Network Type (Local Area Network, Wide Area Network, Metropolitan Area Network, Storage Area Network), By End User & Forecast, 2024 - 2032

Router and Switch Market Size

Router and Switch Market was valued at USD 51.5 billion in 2023 and is anticipated to grow at a CAGR of over 5% between 2024 and 2032. The rapid evolution of technology and the surge in internet usage globally have significantly driven the growth of the market. For instance, in November 2023, Moxa launched the EDR-8010 series, advanced secure industrial routers for Ethernet-based security in critical remote control and monitoring networks.
 

With the proliferation of Internet of Things (IoT) devices, smart home systems, and industrial automation, there is a burgeoning demand for robust network infrastructure capable of handling increased data traffic. Routers and switches play a crucial role in ensuring seamless connectivity and efficient data management across these diverse applications, propelling market growth.
 

The widespread adoption of cloud services by businesses and individuals is another major growth driver for the router and switch market. Cloud computing requires highly reliable and scalable network solutions to support data storage, processing, and access. Enterprises are increasingly investing in advanced networking equipment to enhance their cloud infrastructure, ensuring high performance and low latency. This shift towards cloud-based solutions fuels the demand for sophisticated routers and switches, contributing to market expansion.
 

As routers and switches become critical components of network infrastructure, they are increasingly targeted by sophisticated cyberattacks. Threats such as ransomware, Distributed Denial of Service (DDoS) attacks, and network intrusions pose significant risks to data integrity and availability. Ensuring these devices have robust security features to protect against such attacks requires constant updates and advancements, which can be resource-intensive for manufacturers.
 

Advanced routers and switches, especially those with cutting-edge features like high throughput, extensive security functions, and support for large-scale networks, often come with substantial upfront costs. For small and medium-sized enterprises (SME), these high initial expenses can be a significant barrier to upgrading or expanding their network infrastructure.
 

Router and Switch Market Trends

A key trend in the router and switch market is the increasing adoption of high-speed, high-capacity devices to support growing data demands. The shift towards 400GbE and 800GbE connectivity is driven by the expansion of data centers, cloud computing, and AI applications, which require faster and more efficient data transfer. Advanced technologies such as Broadcom’s 5nm Qumran3D chips exemplify this trend, offering substantial improvements in bandwidth, scalability, and integrated memory solutions. Additionally, the integration of enhanced security features and programmable elements in these devices reflects a growing emphasis on robust network performance and protection in an increasingly complex digital landscape.
 

For instance, in December 2023, Broadcom unveiled the Qumran3D BCM88870, a 25.6Tbps switch/router chip built on a 5nm process. This advanced chip supports up to 800GbE port connectivity and features integrated HBM memory for high-speed packet processing. It offers scalable, low-power performance and supports multiple Ethernet standards, positioning it as a key player in next-generation networking.
 

Router and Switch Market Analysis

Based on end user, the market is divided into residential, commercial, industrial, government/public sector, education, service provider networks, and others. The residential segment is expected to reach a value over USD 25 billion by 2032.
 

• The expansion of high-speed internet access and the increasing popularity of smart home devices drive demand for advanced residential networking solutions. Consumers are investing in routers and switches that support high bandwidth and seamless connectivity for a range of smart devices, from security systems to home automation systems.
   
• As streaming services, online gaming, and remote work become more prevalent, residential data consumption has surged. This increased demand for high-speed and reliable internet connections requires upgraded networking equipment, fueling market growth in the residential sector.
   

Based on technology, the market is divided into wired (ethernet, fiber), wireless (wi-fi, 5G), and hybrid. The wireless (wi-fi, 5G), segment is the fastest growing segment with a CAGR of over 5% between 2024 and 2032.
 

• The widespread adoption of mobile devices, such as smartphones, tablets, and laptops, has surged the need for robust wireless connectivity. Wi-Fi and 5G technologies offer high-speed, reliable access essential for supporting a growing number of connected devices and applications.
   
• Continuous innovations in Wi-Fi standards (e.g., Wi-Fi 6 and Wi-Fi 7) and the rollout of 5G networks are enhancing network performance, speed, and capacity. These advancements meet the increasing demands for higher data rates and lower latency, driving adoption in both residential and commercial environments.
   

North America dominated the global router and switch market in 2023, accounting for a share of over 35%. the region's advanced technological infrastructure and high adoption rates of new technologies drive demand for cutting-edge wireless solutions. The expansion of 5G networks and advancements in Wi-Fi standards, such as Wi-Fi 6 and 7, cater to the increasing need for high-speed, reliable internet to support various applications, including smart homes, IoT devices, and remote work.
 

In the US, the market is growing rapidly due to the country's leadership in technological innovation and digital infrastructure development. The widespread deployment of 5G networks and the adoption of advanced Wi-Fi technologies are driving demand for high-performance wireless networking solutions. The rise in remote work, online education, and streaming services has increased the need for robust, high-speed internet connections.
 

In China, the market is experiencing robust growth driven by the rapid expansion of 5G networks and the increasing adoption of smart technologies. The government's significant investments in digital infrastructure and smart city projects contribute to the market's expansion, supporting widespread deployment of advanced wireless solutions. The surge in demand for high-speed internet, fueled by the proliferation of IoT devices, online entertainment, and remote work, further accelerates growth.
 

South Korea is witnessing notable growth, largely due to its early adoption of advanced technologies and high-speed internet infrastructure. The country’s leadership in 5G deployment and innovations in Wi-Fi standards drive demand for cutting-edge wireless networking solutions.
 

In Japan, the router and switch market is growing steadily, supported by the country's strong focus on technological advancement and high connectivity standards. The expansion of 5G networks and the introduction of advanced Wi-Fi technologies, such as Wi-Fi 6, are key factors driving market growth. Japan's emphasis on integrating smart technologies into various sectors, including home automation and industrial applications, fuels demand for high-performance wireless solutions.
 

Router and Switch Market Share

Cisco Systems, Inc. and Huawei Technologies Co., Ltd. hold a significant share in the global market. Cisco Systems, Inc. is a leading force in the networking industry, renowned for its comprehensive range of router and switch solutions. Cisco’s market leadership is driven by its innovative technology, robust performance, and extensive service offerings. Huawei Technologies Co., Ltd. is another major competitor, known for its advanced networking solutions and competitive pricing. Huawei's strong presence in regions like China and Asia-Pacific, coupled with its emphasis on cutting-edge technology, such as high-speed 5G and AI-driven network solutions, significantly contributes to its market share.
 

Some other major players in the market are Ericsson, EXTREME NETWORKS, INC., F5 Networks, Fortinet, Palo Alto Networks, Ribbon Communications Operating Company, Inc., Riverbed Technology, and Telefonaktiebolaget LM Ericsson.
 

Router and Switch Market Companies

Major players operating in the router and switch industry are:

• 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 March 2024, Huawei introduced the WiFi AX3 Pro Router, a powerful device that supports the latest WiFi 6 standards. This router is designed to deliver ultra-fast internet speeds and improved network stability, catering to the needs of smart homes and offices. The WiFi AX3 Pro Router is part of Huawei’s ongoing efforts to innovate and lead in the networking technology space3.
   
• In October 2023, Cisco unveiled its Catalyst 9000X series switches, designed to enhance network performance and security. These switches offer advanced features such as AI-driven analytics, enhanced security protocols, and support for high-speed data transfer. The Catalyst 9000X series aims to address the increasing complexity of modern network infrastructures, providing businesses with robust and scalable solutions.
   

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 2032, 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 User

• 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