February 28, 2024
Ethernet Switches And Routers Market

The Global Ethernet Switches And Routers Market Is Driven By Increasing Demand For Network Infrastructure Optimization

Ethernet switches and routers are networking devices that allow data transmission within local area networks or wide area networks respectively. Ethernet switches enable network connectivity and communication between devices in close proximity on the same local network while routers facilitate connectivity and transfer of data between separate local networks or across the internet. The demand for these networking devices is rising significantly owing to growing need for optimization and expansion of network infrastructure across industries to support increasing data traffic and connectivity needs. Ethernet switches allow adding more networked devices without compromising the bandwidth or speed of existing devices. They help divide large networks into smaller logical segments to improve overall network performance and management. Similarly, routers allow centralized network management and expanding the coverage of networks to new locations easily. They enable effective handling of large volumes of diverse and real-time data traffic required across various industry verticals nowadays.

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 12% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the ethernet switches and routers market is the increasing adoption of software-defined networking or SDN technology. SDN allows network administrators to dynamically program, control and manage network traffic via automation and software APIs instead of relying on proprietary and static methods. This brings more flexibility, agility and cost-optimization to network infrastructure deployment and management. Major networking equipment manufacturers are integrating SDN capabilities into their ethernet switches and routers to gain competitive advantage. SDN-enabled switches and routers can support workload mobility, optimize resource utilization, simplify addition of new services and enable virtualization of network functions. Their adoption is growing across large enterprises, cloud service providers as well as telecom operators keen on modernizing their infrastructure.

Porter’s Analysis

Threat of new entrants: The Ethernet switches and routers market is moderately difficult to enter due to high initial investment required to set up manufacturing facilities and R&D. However, the threat of new entrants is increasing due to falling product prices and lower entry barriers.
Bargaining power of buyers: The bargaining power of buyers in the Ethernet switches and routers market is high due to the availability of a large number of vendors providing similar products. This gives buyers options to negotiate on price and quality.
Bargaining power of suppliers: Major components used in Ethernet switches and routers such as integrated circuits, memory chips, and packaging materials have few substitutes and suppliers enjoy some bargaining power.
Threat of new substitutes: There is moderate threat of substitution as newer networking technologies such as MPLS and packet optical networking provide alternatives. However, Ethernet switches and routers have widespread installed base and acceptance.
Competitive rivalry: The market competition is intense with presence of multiple global and regional players offering range of low to high end products. Players focus on product features, pricing, distribution, and technical support to gain market share.

Key Takeaways

The Global Ethernet Switches And Routers Market Demand is expected to witness high growth over the forecast period of 2023 to 2030.

Regional analysis: The Asia Pacific region is projected to be the fastest growing as well as the largest regional market for Ethernet switches and routers during the forecast period. This is attributed to the growing demand for cloud-based services in the region. Countries such as China and India are major contributors to Asia Pacific’s market growth due to significant infrastructure developments and expansion of mobile networks in these countries.

Key players: Key players operating in the Ethernet switches and routers market include Huawei Technologies Co. Ltd., ZTE Corp., Cisco Systems Inc., ADVA Optical Networking SE, Nokia Corporation, Ciena Corporation, Infinera Corporation, Fujitsu Ltd., ECI Telecom Ltd., Telefonaktiebolaget LM Ericsson, NEC Corporation, Juniper Networks Inc., Coriant GmbH, Huawei Marine Networks Co. Limited, NTT Electronics Corporation, Lumentum Operations LLC, Plaintree Systems Inc., Marben Products, Smartoptics AS, Shenzhen HiSilicon Technologies Co. Ltd. Cisco Systems is currently the global market leader due to its wide range of networking solutions and major investments in R&D.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it