Enterprise Router Market Size, Share, Opportunities, And Trends By Type (Wired, Wireless, Modular, Others), By Enterprise Size (Small, Medium, Large), By End-User (BFSI, IT & Telecommunication, Retail, Government, Others), And By Geography - Forecasts From 2024 To 2029

The enterprise router market was valued at US$1.561 billion in 2022 and is expected to grow at a CAGR of 7.48% during the forecast period.

An enterprise router is a networking device that connects virtual private clouds (VPCs) and local networks to form a central hub network by forwarding data packets from one network to another. Such routers are used to handle greater complexity networks than home routers and include advanced functions such as parental controls, QoS, and port forwarding. Growing emphasis on stable performance and advanced security emerged as a significant driving force behind the substantial growth of the enterprise router market.

Market Drivers

• Emphasis on to achieve stable performance bolsters the enterprise router market growth.

Enterprise router plays a vital role in providing stable performance. When compared to home routers, enterprise routers are generally faster and have more stable central processing unit (CPU) performance. They are capable of handling millions of internet transmissions per second and with the growing internet load new innovations are being witnessed. For instance, in August 2023, NETGEAR launched the Pro Router (PR60X) making it the latest router to provide and handle networking load. The Netgear PR60X Pro router was developed to provide small and medium-sized businesses with stable and high-performance networking. It has a bi-directional WAN-LAN capacity performance of up to 18Gbps and dual WAN failover interfaces.

• The rise in high-speed and low latency drives enterprise router market growth.

Enterprise router provides high speed and low latency which is critical for businesses that demand quick response times and limited network latency. The growth of the enterprise router market is impacted by developing industry standards and regulations, that require enterprises to adopt more secure, high-speed efficient, and low-latency networking solutions. For instance, in march 2020, TP-LINK announced the release of its fastest WI-FI 6-powered router Archer AX11000 which provides outstanding speed performance and has been referred to as the best router for speed. The AX11000's 802.11ax includes Tri-Band takes the speed of Wi-Fi to a completely new extent - 11000Mbps as well as making it a popular choice for businesses and organizations.

• Booming technology advancements drive the enterprise router market expansion.

Technological advancements can be attributed to the growth of the enterprise router market due to the rapid pace of technological advancement, higher-end and more complex enterprise routers have been developed, offering improved performance, security, and scalability. For instance, in September 2023, Charter Communications and Qualcomm Technologies announced a collaboration to provide the next-gen advanced Wi-Fi router, which will bring Wi-Fi 7 and 10 Gbps connections to the spectrum internet users, supporting and improving the converged connectivity experience for residential and small and medium-sized companies.

Asia-Pacific is expected to dominate the market.

Asia Pacific is projected to account for a major share of the enterprise router market owing to the region’s robust growth in technology advancement and demand for stable and high-speed provider enterprise routers. Due to multiple developments in MSMEs, there is a growing demand for enterprise routers to provide stable performance and high-speed connectivity. For instance, in 2022, the Ministry of Micro, Small & Medium Enterprises announced the Micro and Small Enterprises Cluster Development Program (MSE-CDP) which aims to improve the productivity and competitiveness of Micro and Small Enterprises (MSEs) by providing financial assistance for the establishment of common facility centers (CFCs) in existing clusters and the establishment of new upgrading existing industrial areas, estates, and flatted factory complexes.

Market Challenges

• The high initial investment will restrain the enterprise router market growth.

The growth of the enterprise router market may be restrained by the initial high cost associated with devices. Enterprise routers can be costly, particularly for small and medium-sized businesses with limited resources. Potential customers may be put off by the high upfront costs of these devices. Purchasing robust hardware and software solutions that can meet the demands of large-scale networks can be an expensive upfront investment for businesses.

Market Developments

• November 2022- TP-Link, a global leader in consumer and business networking products, held a historic WiFi 7 product launch to unveil its TP-Link WiFi 7 Routers networking solution. It is the very first router to support WiFi 7, also known as IEEE 802.11be Extremely High Throughput (EHT). The router operates throughout all three bands (2.4 GHz, 5 GHz, and 6 GHz) to fully utilize the spectrum's capabilities and deliver incredible speeds to every device while being more efficient.

Company Products

Enterprise Router Market Scope:

Segmentation

• By Type
  • Wired
  • Wireless
  • Modular
  • Others
• By Enterprise Size
  • Small
  • Medium
  • Large
• By End-User
  • BFSI
  • IT & Telecommunication
  • Retail
  • Government
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Others