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Surging Demand For Internet-Based Devices Fuels Routing Market Growth: Strengthening the Growth Trajectory of the Routing Market
Stay ahead with our updated market reports featuring the latest on tariffs, trade flows, and supply chain transformations.What Is the Expected CAGR for the Routing Market Through 2025?
The size of the routing market has seen significant growth in recent years. It's projected to expand from $21.34 billion in 2024 to $22.68 billion in 2025, experiencing a compound annual growth rate (CAGR) of 6.3%. Factors contributing to the growth recorded in the historic period include the advancement of the internet and data traffic, the proliferation of telecommunication networks, the rise of e-commerce and online services, the adoption of cloud computing and data centers, and the surge in mobile and wireless communications.
What's the Projected Size of the Global Routing Market by 2029?
Predictions suggest that the routing market will experience significant expansion in the coming years, escalating to a value of $35.8 billion in 2029 at a compound annual growth rate (CAGR) of 12.1%. This growth during the prediction period may be due to factors such as the implementation of 5G networks, edge computing and IoT connectivity, the acceptance of sd-wan (software-defined wide area network), cybersecurity and threat prevention measures, the increase in remote work and digital transformation, and the use of multi-cloud and hybrid cloud systems. Key trends for the forecast period include the use of network slicing and qos (quality of service) routing, secure routing through zero-trust network access (ztna), the deployment of ai-driven self-healing networks, the shift to quantum-safe routing protocols, the rise of routing as a service (raas) formats, and the advancement of mesh networking and peer-to-peer routing.
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Top Growth Drivers in the Routing Industry: What's Accelerating the Market?
Growth in the routing market is being substantially fueled by the rising demand for devices that operate on the internet. These are hardware gadgets that function within the IoT, AI, and ML environment, comprising processors, sensors, routing apparatus, communication software & hardware, and other mechanisms for gathering and transmitting data and can connect to a network wirelessly to send information. Such data routing from its origin to its destination forms a crucial component of comprehensive internet-operated devices and wireless solutions. For example, DataProt's research indicates that by 2025, the total number of IoT or connected devices worldwide will hit 25.4 billion. As a result, the surging demand for the internet and devices powered by the internet is propelling the expansion of the routing market.
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What Trends Will Shape the Routing Market Through 2029 and Beyond?
The increasing prominence of technological progression in routing is a notable trend within the routing market. Notable players in this market are concentrating on the provision of high-tech solutions, aiming to fulfill their clientele's requirements and solidify their own standing in the market. These businesses are incorporating contemporary routing technologies and patterns into their offerings, including but not limited to load carrying and delivery routing, data-centric routing, optimized link-state routing, dynamic source routing, among others. Illustratively, In April 2023, Arista Networks, an American firm specializing in computer networking solutions and services, revamped its routing line-up to accommodate edge use cases, spanning areas such as multi-cloud, 5G radio access networks, and other applications.
What Are the Main Segments in the Routing Market?
The routing market covered in this report is segmented -
1) By Type: Wired, Wireless
2) By Placement: Edge, Core, Virtual
3) By Application: Datacenter, Enterprise
4) By Vertical: BFSI, Healthcare, Education, Residential, Media & Entertainment
Subsegments:
1) By Wired: Ethernet Routers, Fiber-Optic Routers
2) By Wireless: Wi-Fi 5 Routers, Wi-Fi 6 Routers, Wi-Fi 6E Routers, Wi-Fi 7 Routers
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Which Top Companies are Driving Growth in the Routing Market?
Major companies operating in the routing market include Cisco Systems Inc., Huawei Technologies Co. Ltd., Juniper Networks Inc., Hewlett Packard Enterprise Development LP, Arista Networks Inc., ASUSTeK Computer Inc., New H3C Technologies Co. Ltd., NETGEAR Inc., Nokia Corporation, Xiaomi Corporation, Acelink Technology Co. Ltd., ADTRAN Inc., Allied Telesis Inc., Belkin International Inc., D-Link Corporation, EERO LLC, EKINOPS S.A., Extreme Networks Inc., Fortinet Inc., Fujitsu Limited, Hitachi Ltd., NEC Corporation, Palo Alto Networks Inc., Riverbed Technology Inc., TP-Link Technologies Co. Ltd., ZTE Corporation, Alcatel-Lucent Enterprise USA Inc., Brocade Communications Systems Inc., Check Point Software Technologies Ltd., Dell Technologies Inc.
Which Regions Will Dominate the Routing Market Through 2029?
Asia-Pacific was the largest region in the routing market in 2024. The regions covered in the routing market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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