Routing Market Will Reach USD 29.3 Billion by 2030

The routing market was valued at USD 16.3 billion in 2023, which will rise to USD 29.3 billion, powering at an 8.8% compound annual growth rate, by 2030.

The significantly rising count of tablets, smartphones, and many other wireless devices is due to the growing need for wireless networking solutions. 

Mainly, the utilization of wireless networks is increasing with the rising accessibility of high-speed, reasonably priced wireless broadband services, including public Wi-Fi hotspots.

The increasing count of networking devices has resulted in massive amounts of multimedia content creation on the internet as well as mobile apps. 

With the rising requirement for handling such enormous volumes of data, there has been a constant increase in servers, cloud computing facilities, and data centers.

The increasing count of smart homes and the rising count of IoT devices boost the need for wireless connectivity, which, in line, is driving the demand for wireless routers. 

The smart home sector is thriving on the back of the increasing significance of energy-saving solutions and remote home monitoring.

The rising count of product introductions for cutting-edge network connectivity is also a major factor driving the growth of this industry.

Key Insights

• APAC will propel at a considerable compound annual growth rate in the years to come. This will be mainly because of the robust development in the deployment of the 5G technology in Oceania and Southeast Asia.

• In regard to the improvement in technologies in this region, China has taken the lead, particularly in the development of innovative technologies like Wi-Fi 6 and 5G.

• The wireless category is likely to be the largest contributor to the industry in 2030, generating USD 17.5 billion in revenue. 

• The rising demand for high-speed internet connections as well as the surging acceptance of smart devices are boosting the need for wireless routers that provide smooth connectivity.

• The edge router category will account for a considerable share in 2030, of 45%. 

• Edge computing includes the placement of computing resources nearer to the edge of the network or data source, which decreases latency and allows real-time access to computer apps.

• Routing serves a key part in both data center and enterprise networks by enabling the secure and efficient movement of data between different services and devices. 

• The enterprise category will, thus, be a substantial contributor to the industry in 2030, generating over USD 11.5 billion. 

• This can be because these devices are generally employed to connect various segments of the internal network, including different floors in a building, thus, enabling a seamless network inside.

• The BFSI sector will be the largest contributor to the industry, because of the rising utilization of innovative routing solutions here. 

• This is because financial organizations have become more complex and nowadays depend on online platforms and cloud solutions to communicate transactional changes globally. 

• The media & entertainment sector also accounts for a large share of the industry. 

• Wired routers are extensively employed in professional studios and various other fixed installations to guarantee high bandwidth and stable connections within media production environments.

SOURCE: P&S Intelligence