Routers (global market)

2022

The volume of the global market for routers and switches for telecom companies reached $14 billion

The volume of the global industry of routers and switches for service providers (SP) in 2022 exceeded $14 billion. This was announced on March 14, 2023 by the analytical firm Dell'Oro Group.

It is noted that North America led the world market with double-digit growth in percent compared to 2021. Positive dynamics was also recorded in the Caribbean and Latin America (CALA). At the same time, in Europe, the Middle East and Africa (EMEA), as well as in the Asia-Pacific region (APAC), sales declined. The Chinese market has suffered greatly, attributed to the limited availability of 400 Gbps capacity equipment; in addition, the deployment of 5G mobile infrastructures has slowed down in China.

The volume of the global industry of routers and switches for service providers (SP) exceeded $14 billion

In North America, the catalyst for the market was IP routers: telecommunications and cloud service providers continued to upgrade their networks using 400 Gb/s equipment to support the growing volume of traffic. The segment of SP routers in the CALA region in 2022 showed 15 percent growth compared to the previous year. There has been an increase in investment from telecommunications providers in 5G networks, as well as in transport network infrastructure in Brazil, Colombia, Mexico and Puerto Rico, "said Ivaylo Peev, senior analyst at Dell'Oro.

The leading supplier of routers and switches for telecom providers in 2022 was, Cisco followed by,, and Huawei Nokia. Juniper At the ZTE same time, Juniper Ciena and Cisco showed the largest annual increase. In particular, the success of Juniper was due to the popularity of the products of the updated MX family based on a special-purpose integrated circuit called Trio-6. Ciena posted double-digit percent revenue growth thanks to the expansion of its product range for service providers and the introduction of Vyatta software. Cisco was able to show good dynamics in the SP router segment, especially in North America.

Analysts at Dell'Oro Group believe that the global SP router and switch industry will continue to grow steadily until 2027: during this period, the CAGR (compound percentage CAGR) will be approximately 2%. The key driver of the industry, as noted, will be 400 Gbps products. Telecommunications and cloud service providers will continue to invest in network upgrades to accommodate the growing volume of traffic and capitalize on the cost-effectiveness of the technology.

Global SP Class Router and Switch Industry Will Continue to Grow Sustainably Through 2027

We expect continued market uncertainty and worsening macroeconomic conditions in the first few years of the period under review (2022 to 2027), as economists predict a high probability of recession in Europe and North America. But in the future, the industry will stabilize, "said Ivailo Peev.

It is noted that in combination with reduced power consumption and a compact form factor, 400 Gb/s routers provide a number of other advantages. In particular, service providers can reduce operating costs and increase the efficiency of investments in network infrastructures. Revenue in the SP Core Router segment until 2027, according to analysts, will increase annually by 4%. Moreover, this growth will be largely due to the introduction of 400 Gbps technology.^[1][2]

3.9% market growth to $16.5 billion - IDC

The IDC report of March 2023 examines the market for enterprise-class routers. At the end of 2022, revenue here reached $16.5 billion, which is 3.9% more compared to 2021. In the segment of routers for service providers, an increase of 1.3% was recorded, and revenue from the sale of other types of devices rose on an annualized basis by 12.9%. Cisco Corporation received 35.1% of total revenue in the enterprise-class router market in 2022. Another 28.4% went to Huawei, approximately 2.2% to H3C.

Geographically, the US router market in 2022 grew by 17%, in Canada - by 1.4%. Sales in Latin America rose by 16.7% compared to 2021. At the same time, in the Asia-Pacific region (excluding Japan and China), sales fell by 3.9%. In Japan, shipments of routers in monetary terms in 2022 rose only by 0.3%. In the Chinese market, demand for devices decreased by 6.7% compared to 2021. Revenue in Western Europe increased 5.2% year-on-year. The market of Central and Eastern Europe, including Russia, showed negative dynamics: here a drop in revenue was recorded compared to 2021 by 21.2%. The Middle East and Africa region increased sales by 3.7% in annual terms.

2021: Up 6.5% to $15.9 billion

2021 ended for the network equipment market with steady growth after the decline in 2020. Thus, sales of Ethernet switches in 2021 increased by 9.7% compared to 2020 and amounted to $30.7 billion. In the segment of routers, a 6.5 percent rise was registered, up to $15.9 billion. Analysts IDC published such data on March 10, 2022.

As for routers, as before, most of the revenue is provided by equipment for communication service providers: by the end of 2021, it has 77.4% of the total turnover. In addition, this segment showed a more pronounced upward trend than the category of corporate routers. In October-December, sales of the former increased by 10.1%, and the latter - decreased by 2.6%. In general, over the year, an increase of 7.9% was registered in the provider segment, and in the corporate direction, growth was 2%.

Among the regions where quarterly router sales increased, analysts named ApeJC (Asia-Pacific, excluding China Japan), China, Western Europe,, USA Latin America and. Canada The fall was noted in, Japan Central and Eastern, the To Europe Middle East and Africa.

2020

Sales of routers decreased by 16.6%, to $2.65 billion - Gartner

Actual sales of routers to companies, state organizations and consumers in the world at the end of 2020 amounted to $2.65 billion, which is 16.6% less than a year earlier. This is evidenced by the data of analysts, Gartner which were disclosed in August 2021.

More than half (58.4%) of the market under consideration in 2020 fell on Cisco, but in comparison with 2019, the share of the American manufacturer decreased by 3.6 percentage points. This dynamic was the worst in the leading group. Moreover, other vendors from the top 5 showed positive dynamics.

Huawei, which is in second place in the overall standings, recorded 18.5% of global router sales at the end of 2020, which is 4.2 percentage points more than a year ago. Juniper Networks entered the top three with a result of 8.1%, while in 2019 the company's share was 7%.

Sales of routers at the end of 2020 decreased by 16.6%

The fourth position in the list of the largest manufacturers of routers in 2020 was taken by the Chinese company H3C, which accounted for 6% of the market (0.5 percentage points relative to 2019). Ubiquity Networks ended 2020 in fifth place in the ranking of the largest router manufacturers with a 2.1 percent share, which was 0.5 percentage points higher than a year ago.

According to analysts, due to the pandemic, companies are forced to adapt to the new business environment and actively invest in information technology. A key area of growth in the switch market remains owners of hyperscale data centers, as well as cloud providers and telecom operators, which are investing in new technology platforms to support increased demand. At the same time, sales of routers decreased largely due to the closure of the offices of companies that were forced to transfer employees to remote work.

Routers are divided into devices that support a different number of ranges. The fastest growing demand is demonstrated by the dual-band equipment segment due to the optimal cost-performance ratio. In addition, many modern devices can connect to such routers, providing a stable signal and wide coverage.

Leaders in the router market

The study notes that authorities around the world are investing heavily in the development of network infrastructure, including smart cities projects. Favorable financial policies developed by governments are likely to expand the markets for telecommunications equipment, information technology solutions and create additional opportunities for the growth of wireless router markets, analysts say.

The report provides an example with the Asia-Pacific region, in which, thanks to various government initiatives and investment projects, the router market is growing significantly. In China, for example, Broad China's government strategy has spurred the production of network equipment.

Researchers believe that the router market has growth potential given the growing number of Internet users. By the end of 2020, 4.66 billion people worldwide, or 59.5% of the total population, had access to the World Wide Web. And we are talking about active Internet users. Experts also pointed to 4.32 billion mobile phone users, many of whom launch the Internet in their smartphones. The technological landscape is constantly changing, providing people with more opportunities to access the Internet.^[3]

The market for switches and routers fell by 3.5%, to $27.8 billion - IDC

The volume of the world market Ethernet-switchboards routers and at the end of 2020 amounted to $27.8 billion, having decreased by 3.5% compared to 2019. Such data led to a research company. IDC More. here

2018

Network equipment sales rose 7% to $44 billion

In 2018, the global market for switches and routers exceeded $44 billion, an increase of 7% compared to 2017. This is evidenced by data from Synergy Research Group, which was released on February 26, 2019. Global spending on routers in 2018 remained at the level of the previous year. In the corporate sector, router sales increased slightly compared to 2017, while a slight decline was recorded in the equipment segment for telecom operators.

Stopping production of Apple routers

On April 26, 2018, Apple officially announced the cessation of production of wireless routers. Although the company itself does not give the reasons for its decision, analysts' data show that the AirPort line has never been in high demand. Read more here.

2017: Up 4 % to $15.2 billion - IDC

On March 5, 2018, the analytical company International Data Corporation (IDC) presented the results of a study of the global router market. Its volume, according to experts, increased by 4% in 2017 and reached $15.2 billion, and the supply of operator solutions increased by 5.7%, and corporate solutions decreased by 1.1%.

Cisco is the leader in router sales, with a 40.8% share. In 2017, the company earned about $6.2 billion on this technology, which is 5.8% less than a year earlier.

Closer to Cisco, Huawei is selected in the router market, which has a 23.7 percent share. Experts drew attention to the strong position of Juniper Networks in the carrier router segment, which the company controls by 18%.^[4]

2016: Up 1.3% to $14.58 billion - IDC

According to IDC, the volume of the router market in 2017 rose by 1.3% to $14.58 billion. Sales of routers to corporate customers and telecom operators increased by 2.4% and 0.9%, respectively.

The researchers note that the router market will receive increased attention over the next quarters, as software-defined architectures begin to take over corporate WAN networks, and SD-WAN technology can affect traditional routing architectures and the WAN transport services market.

The router market is also leading Cisco Huawei with shares of 45% and 17.7%, respectively, according to IDC data for 2016.^[5]

See also

• Solutions and Projects Catalog Routers

• Ethernet
• Ethernet LAN Switches (Global Market)
• Economic downturn proves carrier-class Ethernet market stability
• Wireless Hardware Design and Deployment Guide
• Wi-Fi (Wireless Fidelity) - 802.11 wireless standard
• Fibre Channel over Ethernet (FCoE)
• Power-over-Ethernet

• Routers (global market)
• VPN routers for small and medium businesses (SMB)
• IP Networking Equipment (Global Market)
• Communication Equipment (Global Market) Communication Equipment (Russian Market)
• Long-distance communications (Russian market)
• Cellular (mobile) communications (global market) Mobile communications (Russian market)
• Cellular (Russian market) Communications (Russian market)

Notes