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Global routing market to reach USD 22.9B by 2027

The routing market size is estimated to be valued at USD 15.1 billion in 2022 and reach USD 22.9 billion by 2027, at a CAGR of 8.6% from 2022-2027, according to Research and Markets.

According to the Consumer Technology Association (CTA), the number of smart homes in the US is expected to reach ~35.2 million units by 2020. The growth in smart homes is expected to create demand for routers. Due to 100M FTTH broadband, online 4K videos, 4G/4.5G/5G, IoT, the idea of user experience first, and SDN and NFV, routers are also undergoing continuous evolution.

A significant increase in the demand for connected devices, such as smartphones, smartwatches, and tablets, is also being witnessed. As these devices need to be connected to the Internet for most of their functions, the residential routers market is bound to increase. Moreover, in smart homes, every device requires an internet connection to work properly. The continuous development in wireless technologies and rapid innovation in various devices have increased the use of routers in smart homes.

Reluctance in moving from legacy systems to a virtualized environment can be one of the restraining factors in the routing market. Internet service providers (ISPs) and telecom companies continue to maintain and operate legacy systems, which are complex to manage. Legacy systems incur high maintenance costs and lack compatibility with various platforms.

The new, virtual router software solutions need to be customized for supporting the traditional architecture and infrastructure. These solutions must be properly integrated with the existing infrastructure to realize the benefits, and there is always a risk that this integration would be incomplete. Hence, when deploying a new virtual router application into operations, services providers are reluctant to convert old services to the new virtualized environment.

Wireless router: The fastest type of routing market
Wireless routers are expected to be the leading segment, by type, in the routing market during the forecast period. The growing need for high-speed internet connectivity and the rising adoption of smart devices such as smartphones, tablets, and smart TVs are driving the demand for wireless routers with effective connectivity. The increasing demand for internet-based devices and expansion of cloud networking, coupled with the rising adoption of virtualized technologies, are expected to propel the growth of the global wireless router market during the forecast period.

Core: The fastest placement of the routing market
The core router is a wired or wireless router that distributes internet data packets within a network. Large computer networks require a hierarchy of routers. At the top of this hierarchy are core routers, the fastest and most powerful type. A single core router can cost as much as a high-end sports car. It is capable of processing millions of packets every second. It generally lies in the centtr of large networks and sends and receives packets to lower classes of routers, such as edge routers, which lie on the edge of a network and transfer packets to other networks.

Datacenter: Fastest growing application of routing market
The data centre is an essential element of the internet’s infrastructure. In next-generation facilities, e.g., edge data centres, routers play an important role in connecting network services to end-users. The data centre hardware architecture is evolving to meet increased demand for data through networking bandwidth upgrades, application-optimized data processing, and the addition of IEEE 1588 precision time protocol.

Residential: Fastest vertical of routing market
The recent developments in Wi-Fi technology, such as the increase in speed and security and integration of IoT, have improved the way people use the internet to stay connected. The performance of Wi-Fi connectivity and devices such as Wi-Fi routers has significantly improved with technological advancements. The adoption of Wi-Fi has surged due to its ease of use, installation, and safety. The popularity and acceptance of home and office automation are growing rapidly across the globe.

Automation is deployed for various reasons, such as controlling lights, air conditioners, and fans; monitoring smoke, gas leakage, door intrusion, glass break; or motion detection. It is managed by a router installed in homes or offices that acts as the doorway or portal from homes or offices to the internet. The growing preference for smart architecture in homes and offices is also expected to fuel the demand for routers and routing.

North America: The largest region in the global routing market
The increased deployment of high-speed networks in North American data centres is expected to drive the market in this region. High-speed technologies such as InfiniBand and Ethernet are increasingly being adopted in routers in North America. The rising use of cloud services in the US is another factor driving the market growth in this region.

Major players that are operating in the routing market in North America include Cisco (US), Arista Networks (US), HPE (US), and Juniper Networks (US). Enterprises in North America are increasing their spending on IT infrastructure to gain a competitive advantage and increase their business productivity.


  • Increasing IoT development to boost growth of routing market
  • BFSI vertical to hold largest share of apac routing market during forecast period
  • Routing market in India to register highest CAGR from 2022 to 2027

CT Bureau

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