by Ethernet switches and routers have become ubiquitous network infrastructure devices that enable connectivity and communication within organizations and across the internet. Ethernet switches act as the central connection points that allow devices on a local area network (LAN) to interconnect and link to wide area networks (WAN) and the global internet. Routers route incoming data packets between multiple networks, both within an organization and to external networks, based on destination IP addresses. With advances in connectivity needs supported by technologies like 5G, IoT, cloud computing and remote/hybrid work models, the reliance on high-performance network switches and routers has increased dramatically.
The global Ethernet Switches and Routers Market is estimated to be valued at US$ 21.04 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the Global Ethernet Switches And Routers Market Size has been the increasing demand for high-speed networking solutions that can support bandwidth-intensive applications at scale. With technologies like 4K/8K video conferencing, VR/AR, cloud gaming etc gaining popularity, the need for switches and routers that can handle multi-gigabit throughput with low latency is growing. Vendors are focusing on developing next-generation switches with 25/50/100GbE and 400GbE ports based on specs like Ethernet II and RDMA over Converged Ethernet (RoCE) to facilitate high-speed data center and campus networking. Another trend is the emergence of AI/ML driven “intent-based” networking that uses autonomy to simplify and automate network operations through natural language configuration and intent-based policies.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Ethernet switches and routers market is moderate. Established players have strong brand recognition and economies of scale which pose barriers. However, the technology used has become more standardized reducing barriers.
Bargaining power of buyers: The bargaining power of buyers in the Ethernet switches and routers market is high. Buyers can negotiate on price and demand high quality customized products. They can easily switch between vendors.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Though key components come from few global suppliers, they do not pose major threat as technologies are standardized.
Threat of new substitutes: The threat of substitutes is low. Though wireless technologies provide alternative, wired networks are preferred for high bandwidth applications.
Competitive rivalry: The competition in the Ethernet switches and routers market is high due to presence of global and regional players. Players focus on new innovations, customized products and services to gain market share.
Key Takeaways
The global Ethernet Switches And Routers market is expected to witness high growth.
The North America region currently dominates the market due to high technology adoption. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due to increasing investments in networking infrastructure from various countries like China and India.
Key players operating in the Ethernet Switches And Routers are 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. They are focusing on new product developments through innovation and strategic collaborations to gain competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
