The global router and switch market is expected to witness considerable growth throughout the forecast period which can be attributed to rising demand in application segments. The market has mainly gained traction in the field of computer networking as they aid in efficient flow of data and help in directing traffic over a network. Service providers aim at minimizing the congestion in a network to ensure speedy transfer of data, which can be achieved through network analytics and software programmability. The market has gained prominence in service providers and enterprise markets. Service providers are making attempts to include innovative hardware and software features into their products. The emergence of technologies such as 100 Gigabit Ethernet (100GE) has led to the development and replacement of existing networks. It has subsequently propelled the demand for core Ethernet devices such as routers and switches, ultimately leading to market expansion. Adoption of initiatives such as Long Term Evolution-Advanced (LTE-A) has impelled market growth.
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Inefficiencies of routers and switches and network failures pose a major challenge to market growth. The market is currently dealing with the challenge of network issues and configuration of multiple platforms. Network issues such as slow connection and data transmission have decelerated the market augmentation. Furthermore, Domain Name Server (DNS) cache issues have largely hampered the market growth. The network lacks flexibility and efficiency as the providers are using networks with limited access and mandatory carrier services. Service providers of all sizes in the market have become more hesitant and cautious about their expenditure on the Ethernet devices. Owing to growing congestion in the network, it becomes difficult to ensure end-to-end quality of service across the entire network. Furthermore, massive network transformation goals that involve Network Functions Virtualization (NFV) and Software Defined Networking (SDN) are attributed to be the major reasons for it. Existing network carriers are highly complex and are not ranked high in terms of flexibility they offer. In addition, they are more risk prone.
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The router and switch market comprises technological and customer segments. Enterprise routers and switches find applications in large businesses that transfer data and optical fiber lines at high speed. Access enterprise routers are used in domestic applications such as residential areas and offices.
The use of Internet has grown exceptionally in the North American region especially in countries such as the U.S. and Canada. Hence, the regional market is expected to witness surges in demand for routers and switches. Countries from the Asia Pacific regions such as India, China, Taiwan, and Japan have demonstrated a strong demand for technology during recent times, which is expected to drive the regional Ethernet router and switch market.
Major players dominating the global router and switch market are ASUSTeK Computer Inc., Alcatel-Lucent, ADVA Optical Networking, Actelis Network, Dell Inc., Huawei Technologies, Ericsson, RAD Data Communications, Inc., MRV Communications, Tellabs Inc., and Telco Systems.
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