The 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 form the core of any network infrastructure for connectivity. They are responsible for transferring data across various devices in local area networks (LANs) and wide area networks (WANs). Ethernet switches are devices that connect multiple devices on a computer network by using packet switching to receive, process, and forward data to the correct destination. Similarly, routers are networking devices that connect multiple networks together and select the best path for network traffic to be delivered.
Market key trends:
One of the key trends driving growth of the ethernet switches and routers market is the rising adoption of Internet of Things (IoT) devices and cloud services across various industries. As more devices get connected to networks and demand for seamless connectivity and accessibility increases, there is a need for high-performance networking equipment like switches and routers. Additionally, the increasing transition towards edge computing is also boosting demand for routers and switches that can support the movement of high data traffic between core data centers and edge nodes located closer to IoT devices and endpoints. The market players are increasingly focusing on developing products integrated with advanced capabilities like higher port density, increased processing power and bandwidth to support the needs of evolving digital transformation trends across industries.
Porter's Analysis
Threat of new entrants: The Ethernet switches and routers market requires high R&D investment which makes it difficult for new players to enter the market. Moreover, established players have strong brand recognition and economies of scale which poses barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous vendors offering differentiated products. However, switching costs are low.
Bargaining power of suppliers: A few vendors dominate the supply of key components like semiconductors giving them significant power over players. However, availability of substitutes maintains a balance.
Threat of new substitutes: Alternatives like Wi-Fi and 5G networking provide opportunities for substitution. However, Ethernet switches and routers maintain an edge in performance, scalability and security.
Competitive rivalry: The market is highly competitive with major global players competing on the basis of pricing, product differentiation and innovation.
SWOT Analysis
Strengths: Established global presence, strong R&D capabilities, diversified product portfolios.
Weaknesses: Vulnerable to price wars, heavy reliance on few component suppliers, rising complexity increases support costs.
Opportunities: Growth in IoT and cloud adoption, upgrading of legacy infrastructures, demand from SMBs and telecom sector.
Threats: Intense competition, growing popularity of open-source solutions, standards changes requiring technology updates.
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 adoption of cloud computing and IoT solutions across industries. The market was valued at USD 18.26 Bn in 2023 and is projected to reach USD 33.94 Bn by 2030.
North America dominated the market with over 30% share in 2023 led by widespread digitization and infrastructure development across sectors in the US and Canada. Asia Pacific is anticipated to witness fastest growth owing to the rapid industrialization and growing investments by telecom operators in countries such as China, India to establish private 5G networks.
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.
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