The Global Market for Routers is Projected to Reach US$23 Billion by 2020

Adoption of Advanced Networking Technologies to Drive Demand for Routers, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Routers market. The global market for Routers is projected to reach US$23 billion by 2020, driven by the rapid growth in IP traffic & high-bandwidth data services; adoption of 5G Wi-Fi; and expanding mobile internet & connected devices ecosystem.

Networking equipment, also known as networking hardware, represents a key component of connectivity between IT systems, devices and people, to ensure effective transfer of data/information. Networking equipment comprise of gateways, routers, modems, wireless access points, cables, hubs, switches, and repeaters among several others. Networking equipment also includes hybrid network devices such as protocol converters, bridge routers, multilayer switches, proxy servers, and network interface controllers. Routers, typically used to determine the ultimate destination of data packet, are basically classified as enterprise and service provider routers based on application; as well as core routers, edge routers, high-end routers, medium-range & low-end routers, and access routers based on technology. The growing global demand for networking from both service providers and enterprises is the key factor driving demand for routers.

The growth in global IP traffic, estimated to have increased by five-folds over the last 5 years, is set to continue its rise unabated in the coming years driven by the proliferation of Internet in both business and residential environments. The subsequent rise in the use of the Internet and the number of connected devices will drive IP traffic worldwide to its highest over the long-term. In 2016, the worldwide IP traffic is estimated to exceed 1 zettabyte while peak hour Internet traffic is expected to rise by over 35%; and metro traffic is set to overtake long-haul traffic. This exponential rise in IP traffic will be supported by non-PC devices accounting for over 2/3^rd of all IP traffic. Increasing adoption of web technologies, and mobile communication devices in the wake of workforce mobility will drive business IP traffic in the coming years. Video is projected to account for a majority of all IP traffic, from both consumers and businesses by 2020, owing to the rising demand for VoD services. Supporting this monumental rise in IP traffic entails the need for upgrading of core router platforms in order to address the requirement for higher capacity.

As stated by the new market research report on Routers, the United States represents the largest market worldwide. The spurt in consumer dependence on wireless phone connections in the country is contributing towards the phenomenal growth in wireless data, prompting carrier service providers to invest in advanced networking solutions, thereby promoting the market for service provider routers. Asia-Pacific ranks as the fastest growing market with a CAGR of 4.5% over the analysis period, led by increasing mobile data traffic, escalating broadband penetration rates, growth of residential digital subscriber line (DSL) clients, growing adoption of Wi-Fi among service providers such as cable operators and mobile network operators, and rapid shift from fixed line data-centric client-server topology to wireless application-driven mobile and multi-media network.

Key players covered in the report include ADTRAN, Inc., Alcatel-Lucent, ARRIS Group Inc., ASUSTeK Computer Inc., Belkin International Inc., Brocade Communications Systems Inc., Buffalo Americas, Inc., Cisco Systems Inc., D-Link Systems Inc., Extreme Networks Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co. Ltd., Juniper Networks Inc., NETGEAR, Inc., Siemens AG, SMC Networks Inc., Telefonaktiebolaget LM Ericsson, ZyXEL Communications Corporation, and ZTE Corporation, among others.

The research report titled “Routers: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, mergers, acquisitions and other strategic industry activities of major companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, and Rest of Asia-Pacific), Latin America, and Rest of World. The end-use sectors analyzed for the global and regional markets in the report include Service Providers, Enterprises, and Research/Education & Other Sectors.

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