Data Center Routers Market is Forecasted to Reach US$ 12.8 Billion in 2032, Says Stratview Research

The global data center routers market size was valued at US$ 3.7 billion in 2024 and is projected to reach US$ 12.8 billion by 2032, witnessing a market growth CAGR of 16.8% from 2024 to 2032, according to an analysis by Stratview Research.

Stratview Research, a global market research firm, has launched a report on the global data center routers market, which provides a comprehensive outlook of the global and regional industry forecast, current & emerging market trends, segment analysis, competitive landscape, & more.

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Market Statistics:
Market Size in 2024: US$ 3.7 billion
Market Size in 2032: US$ 12.8 billion
Growth (CAGR): 16.8% during 2024-2032
Leading Type: Top-of-Rack (ToR) Architecture
Leading Data Center Type: Hyperscale Data Centers
Leading Region: Asia-Pacific
Forecast Period: 2024-2032
Trend Period: 2018-2022
Base Year: 2023
Number of Segments Covered: 3
Number of Tables & Graphs: 100+
Country-Level Market Assessment: 20

Segment Insights & Market Share Analysis of the Data Center Routers Market:
The global data center routers market is segmented based on type, data center type, and region.

Based on type -
The data center routers market is segmented into top-of-rack routers, core routers, edge routers, aggregation routers, modular routers, and other types.
Top-of-Rack (ToR) routers will lead the data center routers market in the next few years, fueled by their scalability and efficiency. By putting switches inside server racks, ToR architecture reduces cabling complexity and latency, resulting in better network performance. This configuration is especially beneficial for high-density applications since it enables easier scalability and maintenance.
Additionally, the incorporation of sophisticated technologies like AI and machine learning into ToR switches further increases their ability to handle network traffic intelligently, responding to fluctuating workloads and optimizing data transmission. Such advantages make ToR routers the go-to solution for contemporary data centers seeking agility and high performance.

Based on data center type -
The data center routers market is segmented into enterprise, colocation, hyperscale, and edge.
Hyperscale data centers are expected to dominate the data center router market as a result of high growth and growing capacity needs. As of early 2024, more than 1,000 hyperscale data centers are present globally, with around 120 to 130 new ones set to be deployed each year through the next ten years. This expansion is mainly spearheaded by the rising use of AI technology, which necessitates more sophisticated networking infrastructure. Consequently, hyperscale data centers are expected to make up a large share of the demand for high-performance network equipment.

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Which region shows the most promising growth forecast and opportunity?

The analysis suggests that Asia-Pacific is expected to experience the fastest growth in the data center routers market over the forecast period. This growth outlook is mainly attributed to the following:
- Asia-Pacific region is poised to lead the growth of the data center routers market, driven by a powerful mix of digital transformation and policy support. Countries like China, India, and Japan are rapidly advancing in digitalization, fueling a strong demand for secure and scalable data infrastructure. The widespread adoption of cloud computing, IoT, and AI technologies is further amplifying this need. On top of that, the rollout of 5G networks is boosting connectivity, making advanced networking solutions more critical than ever. Governments across the region are actively supporting this momentum through strategic investments and favorable policies.
- Meanwhile, data localization laws in countries such as Malaysia, Indonesia, and Vietnam are pushing for more local data storage, accelerating the development of new data centers. Together, these factors position Asia-Pacific as the fastest-growing and most dynamic market for data center routers.

Data Center Routers Market Drivers:

Some of the key drivers listed in the report are given below.
- Increasing growth of cloud computing and data-intensive applications, including artificial intelligence, big data analytics, and video streaming, is driving high-performance routing solutions in huge demand.
- The spread of IoT devices is creating enormous amounts of data, necessitating strong infrastructure to handle and route traffic effectively. The transition to virtualization and software-defined networking (SDN) is also fueling router adoption, as organizations look for more agile and scalable networking solutions.
- In addition, the growth in remote work and digital transformation initiatives has driven spending on data center infrastructure. Security issues are also compelling organizations to implement sophisticated routers with built-in protection features. Such emerging technologies as 5G and edge computing are leading the demand for quicker, low-latency connectivity, increasing demand further. Together, these trends place data center routers as strategic pieces in digital ecosystems today.

Competitive Landscape: Top Companies in the Data Center Routers Market:

Stratview Research has identified the following companies as the top market players:
- CISCO Systems
- Arista Networks Inc.
- Huawei Technologies Co., Ltd
- H3C Technologies Co., Ltd
- Juniper Networks Inc.
- Nokia
- Mellanox Technologies (NVIDIA)
- Lenovo
- HP Enterprise
- ODM Direct

What Unique Insights Does This Report Offer?
This report provides comprehensive insights into the market, answering critical questions like
- How big is the sales opportunity?
- Which regions offer the best sales opportunities?
- Which are the most attractive market segments?
- Which are the top players and their market positioning?
- How complex is the business environment?
- What are the factors affecting the market?
For Customization or Any Other Queries, get in Touch with our industry experts at sales@stratviewresearch.com

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Stratview Research is a global market research firm that highly specializes in aerospace & defense, chemicals, and a few other industries.

It launches a limited number of reports annually on the above-mentioned specializations. Thorough analysis and accurate forecasts in this report enable the readers to take convincing business decisions.

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