Ethernet switches and routers allow devices to connect and communicate over a local area network (LAN). They route data and connect devices using Ethernet technology. Routers connect separate networks, and switches connect devices within the same network. Ethernet switches and routers are widely adopted across various industrial sectors such as IT, telecommunications, banking, financial services and insurance (BFSI), government, utilities, healthcare, and others. With rapid digitization across industries and growing focus on automation and Internet of Things (IoT), demand for ethernet switches and routers is expected to increase significantly over the coming years. IoT promises to connect billions of devices to networks and the adoption of IoT is expected to create new opportunities for ethernet switches and routers manufacturers.
The global 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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing adoption of IoT and increasing cloud infrastructure are key drivers expected to boost the growth of global ethernet switches and routers market over the forecast period. Massive surge in IoT devices connecting to networks will require powerful networking infrastructure like switches to route data. Thus, adoption of IoT promises to be a game changer for ethernet switches and routers market. In addition, rise in cloud computing and migration to cloud by enterprises is fueling growth of datacenters. Large datacenters require robust networking equipment to route large data traffic efficiently. This is expected to drive demand for advanced ethernet switches and routers.”
The Ethernet switches and routers market can be segmented into Ethernet switches, SD-WAN routers, multiservice routers, and others. Ethernet switches dominated the market in 2023, accounting for over 50% share. This is because Ethernet switches are major networking devices used for LAN connectivity in enterprises, data centers and carrier ethernet. Majority of organizations use Ethernet switches for connecting devices within the premises to their network.
Political: The increasing government focus on building smart infrastructure and digitizing services is driving investments in networking equipment. Economic: The global macroeconomic recovery post-Covid and rising IT budgets of enterprises is fueling demand. Social: Growth in mobile data consumption and work from home trend is increasing usage of internet and network bandwidth requirements. Technological: Advancements like 5G, Wi-Fi 6, SDN and network function virtualization (NFV) are creating need for upgraded Ethernet switches and routers with high speeds and capabilities.
The Global Ethernet Switches And Routers Market Growth is expected to witness high over the forecast period supported by increasing investments in digital transformation by enterprises.
Regional analysis: North America dominated the market and held over 35% share in 2023 owing to heavy investments in networking infrastructure by communication service providers and cloud providers in the region.
Key players operating in the Ethernet switches and routers market are Huawei Technologies Co. Ltd., ZTE Corp., Cisco Systems Inc., ADVA Optical Networking SE, Nokia Corporation, Ciena Corporation, Infinera Corporation, Fujitsu Ltd., ECI Telecom Ltd., Telefonaktiebolaget LM Ericsson, NEC Corporation, Juniper Networks Inc., Coriant GmbH, Huawei Marine Networks Co. Limited, NTT Electronics Corporation, Lumentum Operations LLC, Plaintree Systems Inc., Marben Products, Smartoptics AS, Shenzhen HiSilicon Technologies Co. Ltd. Major players are focusing on developing advanced products with high speeds and virtualization capabilities to leverage growth opportunities.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it