Global Router Market By Type (Wireless and Wired), By End User (IT & Telecom, BFSI, Education, Healthcare, and Others), By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027
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Market Report Description
The Global Router Market size is expected to reach $25 billion by 2027, rising at a market growth of 8.1% CAGR during the forecast period. The router can be defined as the common device for modern network computing that connects workers to networks, both local as well as Internet, where just about each crucial business activity occurs. In absence of routers, people could not utilize the Internet to communicate, collaborate, or obtain information and learn.
Routers are also capable of providing security. Embedded firewall and content filtering software offer extra protection from undesirable content and unsecured websites without hampering the user’s online experience. However, routers are not suitable for Internet connections or data transmission. The majority of routers enable individuals to connect hard drivers and utilize them as file-sharing servers, or printers that can then be accessed by any person on the network.
Factors such as the rise in the digitalization process, increasing demand for high-speed internet services in the commercial and private sectors, and growing IPTC subscriber base are expected to create new growth avenues for the players operating in the router market in upcoming years. The outbreak of the COVID-19 pandemic and subsequent lockdown restrictions have compelled companies to adopt work from a home model, which boosts the demand for faster internet services and also boosts the work done for the company. This aspect directly helped the router providers to increase their revenue share in the market. The market faces stiff competition from local suppliers in the market who supply similar kinds of cable modems at a low cost. Therefore, local suppliers could hamper the growth of the router market in the next few years.
COVID-19 Impact Analysis
In the last few years, the router market has been growing at a rapid pace. Additionally, the outbreak of the COVID-19 pandemic is expected to positively affect the demand and growth of the router market. Factor such as a surge in requirement of routers among companies for enhancing their employee's internet requirement is responsible for the massive demand of routers during the pandemic. Additionally, the router market is anticipated to be fueled by the rising adoption of the work-from-home model by numerous companies to curb the transmission of coronavirus which had resulted in a faster internet connectivity technology among individuals. Moreover, the global pandemic would spur the growth in several industrial automation industries like manufacturing, retail, and e-commerce, oil & gas, healthcare, resulting in massive demand for industrial routers technology. Thus, the router market has expected to gain momentum during the pandemic period based on the basis of these factors.
Market Growth Factors:
Massive demand for high-speed internet connectivity among consumers
The faster internet connectivity technology enables consumers to reap a host of benefits such as gathering operational data from remote equipment and simplifying the online banking service, which would boost the growth and demand for router services in the market. Additionally, internet connectivity technology offers applications to companies that involve transferring and cross-referencing data, gathering performance data of employees, and providing marketing products efficiently.
Healthcare, BFSI, and education industries are increasingly adopting connected devices
The growth of the router market would be driven by the rising adoption of connected healthcare devices like remote monitoring equipment and heart-rate monitoring device among healthcare experts. Additionally, connected medical devices are extremely helpful for healthcare experts to focus on active patient engagement and offer patient-oriented care delivery services. Therefore, these services need faster internet connectivity technology among healthcare professionals and doctors, thereby propelling the growth and demand for the router in the market.
Market Restraining Factor:
High installation cost
The high installation cost of a wired router may discourage many companies and individuals to deploy this solution despite the fact that it provides numerous benefits. In addition, people residing in low-income countries and SMEs having a low budget are expected to slow down the growth rate of the router market in the forthcoming years. As mobile broadband offers internet connectivity at any time and any place, the dependency on this type of internet connectivity is constantly increasing among consumers. Thus, this factor is a major barrier to the growth of the router market in the upcoming years.
Based on Type, the market is segmented into Wireless and Wired. Wireless segment is further categorized into Dual, Single and Tri. Like a wireless router, a wired router also utilizes an Ethernet cable in order to establish a connection to a modem. Then, it utilizes distinct cables to establish a connection with one or more devices within the network, develop a LAN, and connect the devices inside the network loop to the internet.
End User Outlook
Based on End User, the market is segmented into IT & Telecom, BFSI, Education, Healthcare, and Others. The IT & Telecom segment garnered the maximum revenue share of the router market in 2020. Factor such as wide-scale adoption of wireless routers among the IT organizations to obtain information and pass information to workers and customers via the internet at a high speed with improved security is responsible for the growth of this segment.
|Market size value in 2020||USD 14.5 Billion|
|Market size forecast in 2027||USD 25 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 8.1% from 2021 to 2027|
|Number of Pages||212|
|Number of Tables||362|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Type, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. APAC region would exhibit a promising growth rate during the forecasting period. This is attributed to the growing requirement to track network violations and offenses among the government and public sectors, as these two aspects are responsible for many cyber-attacks.
Free Valuable Insights: Global Router Market size to reach USD 25 Billion by 2027
KBV Cardinal Matrix - Router Market Competition Analysis
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Huawei Technologies Co., Ltd., Eero LLC. (Amazon.com) and Cisco systems Inc. are the forerunners in the Router Market. Companies such as Belkin International, Xiaomi are some of the key innovators in Router Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ASUSTeK Computer Inc., Belkin International Inc. (Foxconn), Cisco Systems Inc., D-link Corporation, Eero LLC. (Amazon.com), Huawei Technologies Co., Ltd., Netgear, Synology Inc., TP link Technologies Co. Ltd., and Xiaomi.
Recent Strategies Deployed in Router Market
» Partnerships, Collaborations and Agreements:
- Sep-2021: Linksys, a subsidiary of Belkin, joined hands with Fortinet, an American multinational corporation. The collaboration aimed to introduce Linksys HomeWRK, a wireless router that packs enterprise-grade security into a consumer-friendly package. The new router is a two-node, mesh-enabled WiFi 6 router controlled through a mobile app. The product would substitute employee’s current home router and offers separate wireless networks for personal and business traffic.
- Sep-2021: Eero, a subsidiary of Amazon, teamed up with WeLink, a rapidly-growing, next-generation broadband provider. The collaboration aimed to fulfill the rising demand for high-speed internet through expanded broadband access and whole-home connectivity. Moreover, WeLink leverages patented, 5G mmWave technology and vertically-integrated services to extend wireless-fiber broadband to homes.
- Aug-2021: Huawei teamed up with Tiantong, China's first mobile communications satellite system. The collaboration aimed to launch a new mobile router that features various data offers, high-speed data, and sleek and easy-to-carry size.
- Jan-2021: TP-Link teamed up with Amazon and Sugr. Through this collaboration, TP-Link launched the first Mesh WiFi 6 system with Alexa Built-In - Deco Voice X20. Sugr Sense by Sugr assists device manufacturers to easily combine Alexa into connected products. It decreases development time, effort, and budget, allowing them to create products to promote rapidly and more effectively.
- Oct-2020: Linksys, a subsidiary of Belkin, formed a partnership with Korea Telecom, the largest Korean mobile carrier, and in Hong Kong with CSL. Through this partnership, the two companies launched the first 5G and Wi-Fi 6 Mobile Hotspot in Korea. The Linksys 5G Mobile Hotspot is supported by the Qualcomm Snapdragon X55 5G Modem-RF System and Qualcomm FastConnect 6800 mobile connectivity system.
» Product Launches and Product Expansions:
- Sep-2021: Linksys, a subsidiary of Belkin, unveiled Linksys (AX5400) WiFi 6 EasyMesh router (E9450) in India. The new router allows customers to enjoy high-speed data transfers, higher capacity, superior connectivity performance in environments with multiple connected devices, and advanced power efficiency.
- Sep-2021: Amazon unveiled the Eero Pro 6 mesh Wi-Fi system for the UK market. This system is It is different from the Eero 6, a system that is already on sale in the UK because it's tri-band instead of dual-band. Moreover, the new system provides an additional 5GHz band that which is utilized wholly for the satellites to communicate with one another.
- Aug-2021: Netgear introduced Nighthawk XR1000 Pro Gaming Wi-Fi 6, the latest gaming router for the Indian market. Moreover, the new router operates with a Wi-Fi 6 speed of up to 5.4 Gbps and would allow various users to connect more devices simultaneously, without impacting reliability or speed, by effectively packing and scheduling data.
- Jun-2021: Cisco introduced the latest portfolio of Catalyst industrial routers to extend the potential of the enterprise network to the edge with the flexibility, security, and scalability required for IoT success. This latest portfolio features 5G capabilities which allow companies to run connected operations at scale with a choice of management tools that are suitable for both IT and operations. Moreover, the unified architecture streamlines collaboration between IT and operations and simplifies their deployments from the enterprise to the edge.
- May-2021: Huawei introduced the Huawei H6 WiFi router. This new router is based on HarmonyOS and provides a large 200 square meters coverage. Moreover, the router is integrated with a sub routing design and runs on the company’s proprietary operating system.
- May-2021: TP-Link introduced the AC1200 Gigabit WiFi Router Archer C64. Archer C64 features MediaTek 1.2 GHz CPU and offers superior wireless performance on the 2.4GHz band at 400 Mbps in comparison with the majority of routers in the market, which operate at 300 Mbps.
- Mar-2021: Xiaomi rolled out the latest Mi AX9000 Gaming Wi-Fi Router along with other products. The new Wi-Fi Router has WiFi 6 standards. Moreover, the router refers to a Tri-band router that supports both 2.4 and 5G bands and is based on a hexa core Qualcomm chipset (4 CPU + 2 NPU) under the hood.
- Feb-2021: Huawei rolled out 5G CPE Pro. This product provides next-level connectivity, providing superior performance and industry-leading download speeds.
- Jan-2021: Linksys launched Linksys AXE8400 Wi-Fi 6E System, the new developments in Wi-Fi and motion detection technology. The new system can decrease congested, unstable Wi-Fi connections and offers more bandwidth to consumers’ homes for clearer, high-speed networks, and higher reliability.
- Jan-2021: Netgear rolled out the Nighthawk RAXE500 Tri-band WiFi router during CES 2021, the world’s first all-purpose WiFi 6E router. Through this launch, the company aimed to offer speeds up to 10.8Gbps and enable 4K/8K video streaming.
- Dec-2020: Xiaomi unveiled Mi Router AX6000 in China. Through this launch, the company would strengthen its current arsenal of the Mi Router series. The new router has support for Wi-Fi 6 and sports six external gain antennas along with one external AIoT antenna.
- Sep-2020: ASUS rolled out the world’s first 6 GHz Wi-Fi (Wi-Fi 6E)-capable router. This router is a major boost to Wi-Fi performance arising from the 6 GHz band and would benefit the world of gaming.
Scope of the Study
Market Segments Covered in the Report:
By End User
- IT & Telecom
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- ASUSTeK Computer Inc.
- Belkin International Inc. (Foxconn)
- Cisco Systems Inc.
- D-link Corporation
- Eero LLC. (Amazon.com)
- Huawei Technologies Co., Ltd.
- Synology Inc.
- TP link Technologies CO. Ltd.
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What would be the value of the global router market by 2027?
The router market size is projected to reach USD 25 billion by 2027.
What are the key driving factors and challenges in the router market?
Massive demand for high-speed internet connectivity among consumers are driving the market in coming years, however, high installation cost have limited the growth of the market.
Who are the leading players in the router market?
ASUSTeK Computer Inc., Belkin International Inc. (Foxconn), Cisco Systems Inc., D-link Corporation, Eero LLC. (Amazon.com), Huawei Technologies Co., Ltd., Netgear, Synology Inc., TP link Technologies Co. Ltd., and Xiaomi.
Which region is leading the market?
In 2020, the North American region emerged as the leading region in the router market and the region is likely to witness a similar kind of trend even during the forecasting period.
Which segment shows a high revenue share of the router market in 2020?
The wireless segment procured the maximum revenue share of the router market in 2020. Moreover, the segment is likely to showcase the highest growth rate during the forecasting period.
Which segment shows the high growth rate of the router market over the forecast period?
The healthcare segment would showcase the highest growth rate during the forecasting period. This is accredited to the growing requirement for faster internet connectivity among the healthcare industry to examine massive volumes of electronic medical records.