The enterprise routers market is poised to grow at a CAGR of 6.2%, during the forecast period (2022 – 2031). Tri-Band Routers are coming in trend which is capable of multiple Gigabit speeds, with 4,000 Gbps on the 5 GHz band. It also reduces signal interference even more than dual-band devices.
– Increasing network virtualization is driving the market. The growing demands placed on IT infrastructure have made network virtualization an increasingly popular solution for businesses ranging from small to enterprise-level, due to reduced hardware & power consumption, which will drive the demand of enterprise router efficiently.
– Rapid growth in IP traffic enterprise is driving the market as the demand for bandwidth is climbing. Offices are leaning more on applications and customers are expecting more cloud-based services. WAN traffic grows at a rate of around 200 percent in real estate, energy, and travel sectors, which increases the penetration of the enterprise router.
– Security and privacy concerns are restraining the market. According to the study, five out of every six routers in the United States are running out-of-date firmware with exploitable security vulnerabilities, which is also hindering the market growth globally.
Scope of the Report
The enterprise routers market is growing as IP traffic have increased five-fold during the past five years and is still increasing exponentially. So, to support this huge growth in IP traffic, routers need to be upgraded, thus growing the enterprise routers market in the various end-user segment such as BFSI, IT & Telecom, Transport, etc.
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Key Market Trends
Wireless Connectivity Through Access Point is Driving the Market
– An ordinary wireless router can only support 10-20 users access, while wireless access router point is able to allow over 50 or even hundreds of users access, and it has stronger ability to send and receive signals.
– Generally, the range of signal transmission that a wireless router can cover is just dozens of meters. A wireless access router can cover further distances, up to 100-300 meters, which enables users to roam freely in the network. Especially for enterprises, their office space is usually larger, and even some need to communicate across the buildings, and the number of users accessing the network is so large that they need a larger wireless router network coverage.
– The networking mode of the wireless router is relatively single with low flexibility. On the contrary, a wireless access point has a variety of modes to choose, which meant to be very flexible, such as Simplex AP, Wireless Client, Wireless Bridge, Multi-point Bridge, etc. and it can be managed in a centralized way with the cooperation.
– Netgear Nighthawk X10 AD7200 is one of industry’s fastest router for media streaming with Plex media server. Nighthawk X10 with 802.11ac and 802.11ad WiFi technology delivers ultra-smooth 4K streaming, VR gaming and instant downloads. With a powerful 1.7GHz Quad-core processor, 60GHz 11ad, and Quad-stream architecture, one can enjoy combined wireless speeds of up to 7.2Gbps, which drives the market.
North America Holds the Largest Share in Enterprise Routers Market
– North America is expected to hold the largest market size with the United States holding the major chunk of the market due to high dependence on internet connectivity.
– Most of the enterprise router providing companies are headquartered in North America. Also, most of the cloud service providers and network virtualization companies are set up in this region, which will also boost the growth rate of the market.
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– Growing demand for hyperscale data centers is now steering growth for network hardware industry in the United States. Surging demand from hyperscale cloud providers led to a record 303 megawatts (MW) of absorption in the seven primary United States data center markets in 2018, which will lead to the demand of high IP traffic, by which the demand of enterprise router will increase.
– Digi International announced that its TransPort family of M2M routers now support Gobi 4G LTE. They are the first M2M routers that give customers the ability to connect to either Verizon, AT&T, or Sprint’s 2G, 3G and 4G networks across North America using a single device. This fully programmable and upgradeable enterprise level 3G and 4G LTE remote communications solutions are ideal for transportation, retail, POS, utilities, energy, medical, financial, digital signage, cellular backup, and remote device connectivity applications.
Competitive Landscape
The enterprise routers market is fragmented as the global players are investing in R&D for the latest innovations in the product for several small to medium-sized companies. Key players are Cisco Systems, Inc., Juniper Networks, Inc., Hewlett Packard Enterprise, etc. The companies operating in the market continuously strive to launch new solutions to help and assist service providers to achieve a holistic approach to infrastructure transformation and gain new orders in that course for strategic aim.
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