Router and Switch Market Report 2025

The router and switch market size has grown steadily in recent years. It will grow from $55.19 billion in 2024 to $57.87 billion in 2025 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to rapid growth of internet usage, expanding data centers, telecommunication network expansion, mobile network evolution, cybersecurity concerns.

The router and switch market size is expected to see strong growth in the next few years. It will grow to $78.87 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to smart city initiatives, digital transformation initiatives, network virtualization, e-commerce boom, remote learning, environmental sustainability. Major trends in the forecast period include 5g network rollout, edge computing expansion, transition to wi-fi 6 (80211ax), software-defined networking (SDN), cybersecurity integration, cloud connectivity and hybrid cloud networks.

The growing dependence on cloud-based solutions is expected to significantly boost the growth of the router and switch market in the coming years. Cloud-based solutions utilize the Internet to deliver computing resources on demand, enhancing flexibility and scalability for businesses. Cloud routers are essential for cloud service providers, enabling private, fast, and secure connections that facilitate data transfer and communication. For instance, a report by AAG IT Services in June 2024 revealed that in 2022, 89% of surveyed organizations utilized multi-cloud solutions for their storage and workloads, while only 9% used a single public cloud and 2% relied on a single private cloud. This trend indicates a strong shift towards diverse cloud environments, which is driving increased demand for advanced routing and switching technologies. Therefore, the growing reliance on cloud-based solutions is propelling the growth of the router and switch market.

The anticipated expansion of data centers is likely to drive the growth of the router and switch market in the coming years. A data center is a specialized area within a building, or a collection of buildings, designed for the assembly, processing, storage, and distribution of large volumes of data. Routers and switches play a critical role in providing network connectivity, managing network traffic, ensuring security, enabling scalability, and delivering reliability. For example, a report from the National Telecommunications and Information Administration, a U.S. government agency, indicated in September 2024 that there are approximately 5,000 data centers in the United States, with demand for these facilities projected to grow by around 9% annually until 2030. Thus, the expansion of data centers is propelling the growth of the router and switch market.

The prevailing trend in the router and switch market is the increasing emphasis on product innovation. Leading companies in this sector are actively engaged in the development of novel products to fortify their market standing. For instance, in February 2022, Cisco Systems, Inc., a US-based provider of information technology and networking services, introduced the 9000X series of switches. The distinguishing feature of the 9000X series switches lies in their integration of a robust Catalyst switch with Cisco Silicon One, delivering optimal performance, high speeds, and the requisite security for hybrid work scenarios. The introduction of new Catalyst 9000X models expands the switch family, serving as the foundational infrastructure capable of managing 100G/400G network access for campus-wide transitions to hybrid work and branch extension, incorporating zero-trust security and power efficiency.

Prominent players in the router and switch market are strategically focused on launching cutting-edge solutions, including powered router and switch modules, to gain a competitive advantage. These hardware components are designed to augment capabilities and broaden the scope of services. For example, in October 2022, Cubic Corporation, a US-based defense company, unveiled the M3-SE5, a Cisco-powered router and switch module. The M3-SE5 facilitates high-speed networking capabilities at the tactical edge, leveraging the ESR6300 router and ESS3300 switching technology. Users can enhance their existing M3-SE baseband computing and network stacks with the M3-SE5, benefiting from Cisco ESR6300 and ESS3300 high-speed networking capabilities without increasing the form factor. Noteworthy features of the M3-SE5 include a smaller electromagnetic footprint compared to traditional networking devices, resilience to shocks and vibrations, and adaptability to diverse thermal environments. This innovative approach offers ideal flexibility and optimizes the user's system investment.

In January 2024, Hewlett-Packard Enterprise, a U.S.-based information technology company that offers IT products, solutions, and services to help businesses connect, protect, analyze, and act on their data, acquired Juniper Networks Inc. for $14 billion. This acquisition is aimed at strengthening Hewlett-Packard Enterprise's networking business and enhancing its capabilities in AI and cloud services. The strategic move seeks to improve competitiveness, achieve cost synergies, and expand its total addressable market. Juniper Networks Inc., also a U.S.-based technology company, is a prominent provider of networking equipment, specializing in routers and switches.

Major companies operating in the router and switch market include Cisco Systems Inc., Alcatel-Lucent Enterprise, Huawei Technologies Co Ltd., Juniper Networks, Actelis Networks Inc., Telefonaktiebolaget LM Ericsson, Adtran Inc., Extreme Networks Inc., RAD Data Communications Pvt. Ltd., Tellabs Access LLC, Telco Systems, Hewlett Packard Enterprise Development LP, Nokia Corporation, ALE International SAS, Zhongxing Telecommunication Equipment Corporation, Arista Networks Inc., Broadcom Inc., Intel Corporation, ADVA Optical Networking SE, MRV Communications Inc., NETGEAR Inc., Datex-Link Corporation, Belkin International Inc., ASUS Computer International, Buffalo Americas Inc., Linksys Holdings Inc., Ubiquiti Networks Inc., Netis Systems Co. Ltd., Tenda Technology Inc., Synology Inc., Dell Technologies Inc., Lenovo Group Limited.

North America was the largest region in the router and switch market in 2024. The regions covered in the router and switch market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the router and switch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A router is a networking device that connects various switches and the networks associated with them to form an extensive network. On the other hand, a switch is a networking device that connects different network devices, facilitating the sharing of information and resources within a small business network. The router, in this context, is utilized to distribute or route the internet connection from the modem to all the networking devices.

The primary products within the categories of routers and switches include internet exchange routers, multiservice edge routers, ethernet service edge routers, service provider core routers, ATM switches, and others. An internet exchange router serves as a physical location where Internet infrastructure providers, such as Internet service providers (ISPs) and CDNs, connect with one another. The services provided encompass ethernet aggregation, internet data center/collocation/hosting, ethernet access, and BRAS (Broadband Remote Access Server). The applications of these devices span residential and commercial use.

The router and switch market research report is one of a series of new reports that provides router and switch market statistics, including router and switch industry global market size, regional shares, competitors with a router and switch market share, detailed finishing lines market segments, market trends and opportunities, and any further data you may need to thrive in the router and switch industry. This router and switch 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 router and switch market consists of sales of wired routers, wireless routers, core routers, edge routers, VPN routers, KVM switches, managed switches, and other related products. 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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