Router and Switch Market Analysis

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.