Ethernet Switch and Router Market to record $20.65 bn incremental growth

The global ethernet switch and router market size is expected to grow by USD 20.65 billion, accelerating at a CAGR of 8.21% between 2021 and 2026. Technavio identifies ADTRAN Inc., Arista Networks Inc., Broadcom Inc., Cisco Systems Inc., D Link Corp, and Dell Inc. among others as major vendors in the market.

The market is driven by the rising demand for colocation data centers among SMEs. SMEs cannot afford to build their own data centers as the capital expenditure and operating costs are high. Hence, they usually opt for colocation, where a company can rent IT infrastructure as per its requirement. Also, colocation services enable SMEs to place their own servers and storage devices in the racks provided. With the increased adoption of colocation services by SMEs, the demand for routers and ethernet switches will in increase over the forecast period.

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Competitors have to focus on differentiating their product offerings with unique value propositions to strengthen their foothold in the market. Market vendors also have to leverage the existing growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

Technavio identifies the following as the dominant players in the market:

• Arista Networks Inc.: The company offers ethernet switches and routers such as Arista 7010 Switch, Cognitive Wi Fi, and Arista 7050X Series.
• Broadcom Inc.: The company offers ethernet switches and routers such as RoboSwitch, StrataDNX, and BCM95352GR.
• Cisco Systems Inc.: The company offers ethernet switches and routers such as Cisco 5000 Series, 900 Series, ASR 9000 Series, and CVR100W Wireless N.
• Dell Inc.: The company offers ethernet switches and routers such as Dell PowerSwitch S Series 1GbE Switches, and Dell PowerSwitch N1108EP ON Switch.
• Extreme Networks Inc: The company manufactures wired and wireless network infrastructure equipment and develops software for network management.

CT Bureau