by The Ethernet Switches And Routers Market is estimated to be valued at Us$ 18.26 Bn in 2023 and is expected to exhibit a CAGR Of 7.5% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Ethernet switches and routers facilitate communication and data transmission between computing devices over a computer network or telecommunication network. Ethernet switches help in transferring data between network segments while routers help transfer data across wide area networks (WANs) by using packet forwarding mechanisms. They are commonly used in enterprises, data centers, and telecommunication networks to establish reliable, scalable and high-speed connectivity for various applications like cloud networking, cybersecurity, IP video surveillance, IP telephony and others.
Market Dynamics:
Two major drivers for the ethernet switches and routers market are growing data traffic due to digital transformation and increasing adoption of cloud computing services. With growing emphasis on digital technologies across various industries, there is a surge in data traffic due to increased usage of internet-based applications and services. This has increased the demand for high-speed networking infrastructures with larger bandwidths to handle massive data volumes. Furthermore, rapid migration of workloads to cloud environments is fueling the need for robust wired networking equipment to establish connectivity within cloud data centers and manage inter-data center communication across different geographic locations. Rising cloud adoption is prompting organizations to invest heavily in upgrading their infrastructure with advanced ethernet switches and routers to handle heavy network loads and optimize connectivity.
Segment Analysis
The Ethernet Switches and Routers market can be segmented on the basis of type, end user and geography. By type, the market is dominated by the Ethernet switches segment which accounts for over 60% share owing to increasing demand for switching solutions from data centers and large enterprises. Ethernet switches provide high-speed connectivity, reliability and scalability within local networks.
PEST Analysis
Political: Trade policies and regulations related to technology and network infrastructure influence the demand for Ethernet switches and routers.
Economic: Strong economic growth in various regions driving investments in digital transformation and network infrastructure modernization augments market growth.
Social: Increasing mobile data traffic and digitalization of enterprises boosts the deployment of networking solutions.
Technological: Advancements in switching technologies such as Wi-Fi 6E and 400 Gbps Ethernet create opportunities for high-performance routers and switches.
Key Takeaways
The Global Ethernet Switches And Routers Market Size is expected to witness high growth, exhibiting a CAGR of 7.5% over the forecast period, due to increasing investments in digital transformation initiatives by businesses worldwide.
The market size for Ethernet switches and routers was valued at US$ 18.26 Bn in 2023 and is expected to reach over US$ 30 Bn by 2030. North America dominated the Ethernet switches and routers market in 2023 with over 30% share due to rapid 5G deployments and strong investments in high-speed networking infrastructure by communication service providers in the region.
Key players operating in the Ethernet switches and routers market are Cisco Systems, Inc., Huawei Technologies Co., Ltd., Juniper Networks, Inc., Arista Networks, Inc., Hewlett Packard Enterprise, Company, Dell Technologies Inc., Extreme Networks, Inc., NETGEAR, Inc., ZTE Corporation, D-Link Corporation, TP-Link Technologies Co., Ltd., Allied Telesis Holdings K.K., Fortinet, Inc., Mellanox Technologies, H3C Technologies Co., Limited, Nokia Corporation, Arista Networks, Inc., MikroTikls SIA, NEC Corporation, Ubiquiti Inc. These players are focusing on new product launches and mergers & acquisitions to gain more market share.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
