by 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 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 are networking devices that direct data packets between computer networks or subnets. They allow various devices on a network to communicate with each other by selecting the best path through the network. Ethernet switches and routers play a crucial role in connecting servers, computers, security devices, storage systems, and other networking devices. Increasing adoption of cloud computing solutions is driving the demand for high speed and efficient ethernet switches and routers. Cloud infrastructure requires reliable and high capacity networking devices to handle large data transfers.
Market key trends:
Growth of Internet of Things (IoT) is creating opportunities for ethernet switches and routers market. Increased IoT connectivity is generating huge data which requires effective network management to handle connectivity of various IoT devices. Emergence of 5G technology is also augmenting the ethernet switches and routers market. Growing 5G deployment by telecom operators will increase the need for high bandwidth networking equipment. Adoption of Wi-Fi 6 and Wi-Fi 6E standards in enterprise and residential networks is another trend supporting market growth. These new Wi-Fi technologies offer faster data transfer capabilities than previous versions.
Porter’s Analysis
Threat of new entrants: The Ethernet switches and routers market requires high initial investments in R&D as well as manufacturing which poses a barrier for new entrants. The market is dominated by well-established players who enjoy economies of scale.
Bargaining power of buyers: The buyers have moderate bargaining power due to the presence of several vendors offering substitutable products. However, switching costs associated with replacing network infrastructure limits their power to some extent.
Bargaining power of suppliers: Component providers do not hold significant influence given the availability of substitutes and presence of global suppliers. Suppliers also rely on major players for bulk of their revenues.
Threat of new substitutes: There exists a threat of substitution from alternative switching and routing technologies. However, established network standards and need for upgrading existing infrastructure make customers reluctant to shift in the short term.
Competitive rivalry: The market is highly competitive with major players differentiating through product quality, configurability, reliability and technical support. Players focus on R&D to gain an edge.
Key Takeaways
The Global Ethernet Switches And Routers Market Size is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing cloud computing adoption. This has increased the demand for data centers which has further driven the need for high-speed networking equipment.
Regionally, North America dominates the global Ethernet switches and routers market holding around 40% share owing to heavy investments in developing network infrastructure by communication service providers and enterprise adoption of advanced networking technologies in this region. Asia Pacific is anticipated to exhibit the fastest growth led by nations like China and India experiencing rapid industrialization and digitalization.
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 collaborations to gain a competitive edge in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
