Routing Global Market Report 2024

Routing refers to the delivery of network services, whether wired or wireless, conducted by network layer devices. The routing process involves selecting a path for traffic within a network or across multiple networks. This concept is applicable to various network types, including circuit-switched networks, public switched telephone networks (PSTN), computer networks, the internet, IP addresses, and others. Routing algorithms, metrics, and costs are employed to initialize and maintain the routing table, facilitating the determination of paths for data transmission.

The primary types of routing encompass wired and wireless. Wireless routing products or services involve the utilization of wireless devices to transmit data packets between networks. Wireless routing employs built-in antennas to establish connections with a home Wi-Fi network, providing internet connectivity for all devices on the network. Routing products and services can be categorized into edge, core, and virtual, with applications in data centers and enterprise settings. End-users of routing services span various sectors, including BFSI (Banking, Financial Services, and Insurance), healthcare, education, residential, and media & entertainment.

The routing market research report is one of a series of new reports that provides routing market statistics, including routing industry global market size, regional shares, competitors with a routing market share, detailed routing market segments, market trends and opportunities, and any further data you may need to thrive in the routing industry. This routing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The routing market size has grown strongly in recent years. It will grow from $20.33 billion in 2023 to $21.84 billion in 2024 at a compound annual growth rate (CAGR) of 7.4%.
The growth observed during the historic period can be attributed to various factors, including the expansion of the internet and data traffic, the growth of telecommunication networks, the rise of e-commerce and online services, the increased adoption of cloud computing and data centers, and advancements in mobile and wireless communications.

The routing market size is expected to see strong growth in the next few years. It will grow to $31.46 billion in 2028 at a compound annual growth rate (CAGR) of 9.6%. The anticipated growth in the forecast period can be attributed to several factors, including the deployment of 5G networks, the implementation of edge computing and IoT connectivity, the adoption of SD-WAN (Software-Defined Wide Area Network), a focus on cybersecurity and threat protection, the impact of remote work and digital transformation, and the prevalence of multi-cloud and hybrid cloud environments. Prominent trends in the forecast period include the utilization of network slicing and Quality of Service (QoS) routing, the adoption of Zero-Trust Network Access (ZTNA) for secure routing, the development of AI-driven self-healing networks, the exploration of quantum-safe routing protocols, the emergence of Routing as a Service (RaaS) models, and the use of mesh networking and peer-to-peer routing.

The growth of the routing market is significantly propelled by the increasing demand for internet-based devices. These devices operate within the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) ecosystem, encompassing processors, sensors, routing devices, communication hardware and software, and other tools. They wirelessly connect to a network, enabling the collection and transmission of data. The routing of data from source to sink is a fundamental aspect of large-scale internet-based devices and wireless solutions. As per a study by DataProt, the global number of IoT or connected devices is projected to reach 25.4 billion by 2025. This surge in demand for internet-based devices is a driving force behind the growth of the routing market.

The growth of the routing market is further driven by the increasing adoption of cloud-based services. These services encompass a range of on-demand services delivered over the internet, generating significant data traffic that necessitates efficient routing for optimized data transmission. According to the International Data Corporation, global revenue from public cloud services reached $545.8 billion in 2022, marking a substantial growth of 22.9% compared to the previous year. The adoption of Software as a Service – Applications (SaaS – Applications) was the largest contributor to this revenue, constituting over 45% of the total. Infrastructure as a Service (IaaS) followed as the second-largest category, comprising 21.2% of the overall revenue. The increasing adoption of cloud-based services is thus a key driver for the growth of the routing market.

A prominent trend in the routing market is technological advancements. Major companies in this sector are actively focused on delivering technologically advanced solutions to meet customer demands and enhance their market position. Next-generation routing technologies and models, such as load carrying and delivery routing, data-centric routing, optimized link-state routing, dynamic source routing, and others, are being implemented to provide cutting-edge services. For example, in August 2021, Arista Networks upgraded its routing portfolio to support edge use cases, including multi-cloud, 5G radio access networks, and other applications.

Leading companies in the routing market are also adopting edge computing to gain a competitive edge. Edge computing involves distributed computing that brings data processing and analysis closer to the data source, typically at or near the edge of the network where data is generated. Nippon Telegraph and Telephone Corporation, in collaboration with VMware and Intel, launched Edge-as-a-Service in August 2022, offering a managed edge compute platform that combines VMware's Edge Compute Stack and NTT's Private 5G technology. This solution provides near-zero latency for enterprise applications at the network edge, facilitating seamless multi-cloud and multi-tenant connectivity.

In March 2021, Cisco acquired Acacia Communications, Inc. for $4.5 billion. This acquisition aims to strengthen Cisco's routing and optical networking portfolio, aligning with its 'Internet for the Future' strategy. Acacia Communications, Inc. is known for its optical networking strategy and technology, contributing to Cisco's capabilities in the evolving landscape of routing and networking.

Major companies operating in the routing market include Cisco Systems Inc., Huawei Technologies Co. Ltd., Juniper Networks Inc., Hewlett Packard Enterprise Development LP, Arista Networks Inc., ASUSTeK Computer Inc., New H3C Technologies Co. Ltd., NETGEAR Inc., Nokia Corporation, Xiaomi Corporation, Acelink Technology Co. Ltd., ADTRAN Inc., Allied Telesis Inc., Belkin International Inc., D-Link Corporation, EERO LLC, EKINOPS S.A., Extreme Networks Inc., Fortinet Inc., Fujitsu Limited, Hitachi Ltd., NEC Corporation, Palo Alto Networks Inc., Riverbed Technology Inc., TP-Link Technologies Co. Ltd., ZTE Corporation, Alcatel-Lucent Enterprise USA Inc., Brocade Communications Systems Inc., Check Point Software Technologies Ltd., Dell Technologies Inc.

Asia-Pacific was the largest region in the routing market in 2023. The regions covered in the routing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the routing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.

The routing market consists of revenues earned by entities by providing routing servicefor spatial analysis on transportation networks, such as determining the most efficient path through a city, locating the nearest emergency vehicle or facility, determining the service area in and around a specific location, or fulfilling a number of orders with a fleet of vehicles. The market value includes the value of related goods sold by the service provider or included within the service offering. The routing market also includes sales of routing components such as input ports, witching fabrics, output ports and routing processor. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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