Router Market Projected to Reach $44.4 Billion by 2032
The global router market is expected to experience significant growth in the coming years, reaching a value of $44.4 billion by 2032, according to a report published by Allied Market Research. The market, which was valued at $19.6 billion in 2022, is projected to exhibit a compound annual growth rate (CAGR) of 8.8% from 2023 to 2032.
The increasing penetration of bring-your-own-device policies among small and medium-sized enterprises, along with the rising demand for faster internet connectivity technology among consumers, is driving the growth of the router market. Additionally, the adoption of connected devices in industries such as healthcare, education, and BFSI (banking, financial services, and insurance) is further propelling market growth.
However, the high implementation cost of wireless router solutions and issues such as overheating and overloading of router technology are expected to hamper market growth. Despite these challenges, government initiatives for smart city projects present lucrative opportunities for market expansion.
The report also highlights the dominance of wired routers in the market, with the wired segment accounting for more than two-thirds of the global router market revenue in 2022. This can be attributed to the increased usage of wireless routers in small businesses and residential applications. The wired segment is projected to witness the highest CAGR of 9.8% from 2023 to 2032, driven by the growing utilization of smart devices and the availability of affordable wireless routing services.
In terms of end users, the BFSI segment held the largest market share in 2022, contributing to nearly two-fifths of the global router market revenue. The segment’s growth is fueled by the increased demand for personalization and self-service on services and products. However, the healthcare segment is expected to exhibit the highest CAGR of 13.5% from 2023 to 2032. This is attributed to the need for real-time patient monitoring in healthcare organizations and the growing investment in telehealth and telemedicine.
Geographically, North America accounted for the highest market share in 2022, representing nearly two-fifths of the global router market revenue. The region’s growth can be attributed to the rising demand for colocation data centers among small and medium-sized enterprises, as well as the increased adoption of machine-to-machine communication. However, the Asia-Pacific region is expected to witness the fastest CAGR of 11.1% from 2023 to 2032, driven by government projects for smart city development and the need to monitor network violations and offenses.
Key players in the global router market include Asustek Computer Inc., Belkin International Inc., Cisco Systems Inc., D-Link Corporation, Eero LLC, Huawei Technologies Co., Ltd., Netgear, Synology Inc., TP link Technologies Co. Ltd., and Xiaomi. These companies have adopted various strategies, such as new product launches and collaborations, to maintain their market share and drive growth.
Overall, the router market is poised for significant expansion in the coming years, driven by the increasing demand for faster internet connectivity and the adoption of connected devices across various industries. While challenges such as implementation costs and technology issues exist, government initiatives and the dominance of wired routers are likely to fuel market growth.