Global Routing Market By Type (10 Gbit/s, 40 Gbit/s, 100 Gbit/s), By Application (Data Center, Enterprise Network, Internet Service Provider), By Region, And Segment Forecasts, 2023 to 2032
Report Id: 44252 | Published Date: Jul 2024 | No. of Pages: 200 | Base Year for Estimate: Jul 2024 | Format:
Routers are an important technology that has taken over the global market with the volume of multimedia material produced by the internet and different web applications. Routers operate at the network level and determine the quickest path for packets. A router is linked to at least two networks, typically two LANs, WAN as well as the network of the ISP and is used by schools, big enterprises, schools and other organisations to connect their local area networks.
The global routing market was valued at USD 15.9 billion in 2023 and is projected to reach USD 22.8 billion in 2027, growing at a CAGR of 8.7% from 2023-2027. The pandemic has greatly affected non-residential construction but the excessive data consumption during the pandemic has led to a rapid increase in the demand for fibre-to-the-home (FTTH) due to the implementation of WFH policies by most companies across the world
Premium Insights:
The need for data centres is rising because of the expanding use of big data analytics and cloud-based services across various end-use segments.
Ethernet switches handle massive amounts of data among networked servers and storage units. This is likely to result in high adoption of data centre switches for managing and routing the data traffic.
Global Routing Market Dynamics:
Drivers: Surge in data traffic, virtualization & software-defined networking and demand for security & threat mitigation.
-The proliferation of connected devices, the rise of cloud computing, and bandwidth-intensive applications like video streaming fuel the demand for efficient routing solutions to manage ever-growing data traffic.
-The increasing adoption of virtualization and SDN technologies creates a need for flexible and scalable routing solutions that can adapt to dynamic network environments.
-Advanced routing protocols play a crucial role in network security by enabling traffic filtering, firewalls, and secure communication paths.
Restraints: Complexity of network architectures, expensive licensing fees and security vulnerabilities.
- Large and complex network architectures with diverse hardware and software components can present challenges in integrating new routing solutions.
-Advanced routing solutions with sophisticated features can be expensive, particularly for licensing fees and ongoing maintenance costs.
-Routing protocols can be vulnerable to cyberattacks. Constant vigilance and security updates are essential to mitigate evolving threats.
Opportunities: Cloud-based routing, focus on open-source routing protocols and focus on scalability.
-Offering cloud-based routing solutions and managed services can reduce upfront costs for businesses, simplify deployment, and provide ongoing expert support.
-The development and adoption of open-source routing protocols can promote interoperability between different vendors' solutions and provide greater flexibility for network operators.
-Developing routing solutions that are scalable and can accommodate future growth in data traffic and network complexity will be crucial for long-term market success.
Market By Routing Type Insights:
Based on type, the market can be segmented into Wired and Wireless routers. The usage of wireless routers has increased with the proliferation of laptops, tablets and smartphones in enterprises. Modern wireless routers offer high speeds, strong signal strength and the ability to handle a large number of connected devices. They are also equipped with advanced security features like WPA3 encryption to safeguard sensitive business data.
Based on placement, the market can be segmented into Edge, Core and Virtual. Edge routers are expected to hold a dominant share of the market owing to factors like connecting to external networks, performing vital security functions like firewalls, and protecting internal networks among other tasks. These routers also often represent a more cost-effective solution.
Based on route, the market can be segmented into Static, Default and Dynamic routing. Dynamic routing protocols lead the market due to factors such as adaptability in complex networks, by ensuring efficient and reliable data flow across various paths and allowing for scalability without any need for manual re-configuration.
Based on application, the market can be divided between Datacentre and Enterprise. Datacentres occupy a major portion of the market as routers with exceptional performance and scalability are required to handle massive data traffic in these datacentres along with robust security features to safeguard sensitive data.
Market By End-Use Insights:
Based on end-use, the BSFI sector is expected to hold a dominant share of the enterprise router market in 2024. This sector deals with highly sensitive financial data, and routers need to comply with strict regulations. Financial transactions require reliable routers for uninterrupted data flow, making high-performance routers crucial for BSFI operations
Market By Region Insights:
Based on regional coverage, the market can be segmented into North America, Europe and Asia-Pacific. North America is anticipated to dominate the global market for routers over the forecast period. The region’s dominance is driven by advanced broadband infrastructure and the requirement for a robust network mechanism to sustain the convenient flow.
Competitive Scenario:
Major players in the region consists of Acelink Technology, Ekinops, Extreme Networks, Adtran, Arista Networks, Asustek Computer, Juniper Networks, Belkin International, Cisco, H3C, HP Enterprise, Huawei, Netgear, Nokia, and Xiaomi
Scope Of Work-Global Routing Market
Key Market Developments:
March 2022- NEXCOM, a leading supplier of network appliances and Telco Systems, a leading supplier of edge compute solutions announced the availability of a commercial-ready solution for SOHOs and mid-range businesses looking to run virtual workloads at the network edge.
July 2022-Ericsson’s dual-mode 5G Core supports WINDTRE network’s service expansion for both standalone and non-standalone services, by enabling the fast introduction of new services for consumers and enterprises.
December 2021-Aruba, a Hewlett Packard Enterprise company, introduced the new EdgeConnect Microbranch solution, a home office and small office networking solution for hybrid work environments that securely provides remote personnel with all of the traditional services, that workers receive in-office via a single Wifi access point, with no agent, gateway or additional hardware required at the remote site.
Frequently Asked Questions (FAQs)
1. What is the size of the global routing market?
Ans. As of 2023, the size of the global routing market is USD 15.9 billion.
2. What are the key drivers of the routing market?
Ans. Key drivers include a surge in data traffic, virtualization & software-defined networking and demand for security & threat mitigation.
3. What are the major challenges in the routing market?
Ans. Challenges include the complexity of network architectures, expensive licensing fees and security vulnerabilities.
4. What are the growth opportunities in the global routing market?
Ans. Opportunities include Cloud-based routing, a focus on open-source routing protocols and a focus on scalability.
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