(MENAFN- Comserve) Shibuya-ku, Tokyo, Japan, Japan, Oct 14, 2021, 05:26 /Comserve / -- Enterprise Routers Market With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast
The enterprise routers market is poised to grow at a CAGR of 6.2% during the forecast period from 2020 to 2025. Enterprise routers are vital products that any business or enterprise uses regularly. They play an essential role in enterprises in connecting computer networks and the internet. Routers perform many functionalities, such as enterprise routing, which gives businesses a higher CPU capacity to control place tasks. Furthermore, it provides companies the ability to enhance their interface for both Ethernet and WAN circuits, run NetFlow/sFlow, MPLS, QoS, and other security features. It has functions to integrate deep packet inspection and WAN acceleration. Enterprise routers assist in maximizing productivity in the office, and the installation of an enterprise router requires the skills and expertise of an engineer.
- In the first quarter of 2019, the enterprise and service provider router market grew 8.2%. The service provider segment accounts for 75.3% of router market revenues. The service provider router market rose 7.1%, and the enterprise router market grew 11.9%. The top seven enterprise routers which had high market share till June 2019 were Cisco (55.7%), Huawei (9.3%), HPE (5.3%), Nokia (3.7%), Juniper (3.6%), Netgear (2%), Dell EMC (1.7%). Cisco Systems is one of the top networking companies in the world with the highest market share providing a wide variety of enterprise routers. Cisco's enterprise router revenue rose 16.1%, and Cisco's SP and enterprise router market share increased to 42.4% from 37.4% in the first quarter, according to telecom lead.
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Key Market Trends
Wireless Connectivity is Expected to Hold Major Share
- An ordinary wireless router can only support approximately 10-20 users' access. In contrast, the wireless access router point allows over 50 or even hundreds of users' access, with the potential ability to send and receive signals. According to Cisco, the expected penetration of enterprise internet traffic via wireless fixed-line connection in 2021 shall be 125988 petabytes per month. With the rise in high internet traffic and devices, average fixed broadband speed, along with average internet users, will grow exponentially in the forecast period. Average fixed broadband speed is likely to increase from 5.1 Mbps in 2015 to 12.9 Mbps in 2020.
- For instance, the industry's first 5G optimized wireless WAN edge router for enterprise branch deployments has been released by Cradlepoint in May 2020. The Cradlepoint E3000 Series, according to the company, optimizes performance and investment protection and enables customers to deploy a wireless wide-area network (Wireless WAN) using the latest LTE and Wi-Fi technology and seamlessly upgrade to 5G in the future. The COVID-19 pandemic has fueled an already growing demand for agile and rapidly deployable wireless WANs based on LTE for primary connectivity. Cradlepoint said in the release that the E3000 Series is intended to target this market directly.
North America is Expected to Hold Major Share
- North America is expected to hold a prominent share in the enterprise routers market. Moreover, the region has a strong foothold of network routers vendors. Some of them include Cisco Systems, Inc., Dell EMC, Juniper Networks, Inc., among others, which contribute to the growth of the market. It is estimated that till 2022, in the United States the market for network router will grow to USD 11,950 million which includes the market for ethernet service edge router, multiservice edge router, service provider core router, and internet exchange router (source Cisco), where the expectation of high market growth potentially move towards internet exchange router in 2022.
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- The growing demand for hyperscale data centers is now steering growth for the network hardware industry in the United States. Surging demand from hyperscale cloud providers led to a record of 303 megawatts (MW) of absorption in the seven primary United States data center markets in recent years, which will lead to the demand for high IP traffic, by which the demand of enterprise router will increase. Furthermore, Cisco estimated that in North America, the IP traffic growth would increase to 108 exabytes/month by 2022, showing 21% CAGR, which is three-times growth. This significantly caters to the demand for enterprise routers during the forecast period.
- Moreover, according to Cisco, 46% of network devices will be machine -to -machine or IoT by 2020, which are vulnerable to attacks. To fully realize the potential of these connected devices, the industries need to be equipped with WANs that are flexible to meet the network demands anticipated over the future. Furthermore, the emergence of trending technologies, such as cloud networking, SaaS-based application, network analytics, DevOps, and virtualization, has encouraged the users and businesses in North America to undertake enterprise routers products.
Competitive Landscape
The enterprise routers market is fragmented as the global players invest 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 service providers achieve a holistic approach to infrastructure transformation and gain new orders in that course for strategic aim.
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview (Covers the impact due to COVID-19)
4.2 Market Drivers
4.2.1 Increasing Network Virtualization
4.2.2 Rapid Growth in IP Traffic Enterprise
4.3 Market Restraints
4.3.1 Security and Privacy Concerns
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 TECHNOLOGY SNAPSHOT
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