According to Markets and Markets™, the global market size is projected to grow from USD 26.4 billion in 2022 to USD 36.4 billion by 2027; it is expected to grow at a CAGR of 6.6% during the forecast period. Owing to COVID-19, the network devices market faced some headwinds for 2020–2021. WiFi network deployment helps enterprises rapidly build and connect business applications. The WiFi network also provides greater flexibility, scalability, reliability, and cost-effective benefits in connecting mission-critical business applications. Core industry sectors are keen on automating and digitalizing their business processes to streamline business operations and drive new business revenue opportunities. As the number of Internet users is expected to continue to grow significantly in coming years, the demand for network devices including routers, gateways and access points is also expected to rise simultaneously.
Routers to account for the largest share of the network devices market in 2022
The routers segment is expected to lead the network devices market, by type, 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 in the residential sector. The increasing demand for Internet-based devices, expansion of cloud networking, and rising adoption of virtualized technologies, are expected to propel the growth of the routers market for industrial, enterprise, and commercial applications during the forecast period. Industrial routers provide the communications backbone for manufacturing and utilities applications that run in both indoor and outdoor environments. Cellular based industrial routers also need to be certified for connection compatibility by cellular service providers such as AT&T, Verizion and Vodafone. Some industrial routers also have SCADA compatibility for use with industrial equipment and machinery that use standardized SCADA communication. Industrial routers also feature unlicensed wireless bands that are not found in residential or commercial routers.
Indoor network devices segment to dominate network devices market during the forecast period
The indoor segment held the larger share of the network devices market. The signal range of any given access point indoors varies significantly from device to device. Factors that determine the range of an access point include the specific wireless protocol it runs on, the strength of its device transmitter, and the nature of physical obstructions and radio interference in the surrounding area. Physical obstructions, such as brick walls and metal frames or siding, can reduce the range of a WiFi network by 25% or more. A wireless signal weakens every time it encounters an obstruction; this happens frequently indoors, due to walls, floors, and even the electronic interference caused by appliances.
WiFi-based network devices to register the highest share for network devices market in 2022
WiFi enables devices to connect directly to each other or to broad networks to deliver information. It is a key technology driving the IoT concept, and mainly operates in the frequency band of around 2.4 GHz and 5.0 GHz. WiFi is expected to be the leading segment, by connectivity, in the network devices market during the forecast period. From WiFi 5 to new WiFi 6 and 6E routers, gateways, and access points, WiFi connectivity provides the ideal performance, range and overall value. A WiFi router connects directly to a modem through a cable. This allows it to receive information from and transmit information to the Internet. The router then creates and communicates with the home WiFi network using built in antennas, thus allowing all the devices on the home network Internet access. The wireless nature of WiFi networks allows users to access network resources from nearly any convenient location within their primary networking environment across commercial, industrial, and enterprise applications.
Enterprise network devices to have highest share in 2022
An enterprise network is usually deployed across large organizations and offices. it comprises the IT infrastructure that midsize and large organizations use to provide connectivity among users, devices, and applications. An enterprise network consists of physical and virtual networks and protocols that serve the dual purpose of connecting all users and systems on a local area network (LAN) to applications in the data center and cloud as well as facilitating access to network data and analytics. The market for enterprise networking is expected to be the leading segment in the network devices market during the forecast period. The increasing demand for Internet-based devices, expansion of cloud networking, and rising adoption of virtualized technologies are expected to propel the growth of the network devices market for enterprise applications during the forecast period. Favorable government initiatives to promote the digitalization and industrialization of developing economies will positively influence the enterprise market.
Market in North America estimated to have the largest share during the forecast period
North America is estimated to lead the network devices market. The market in North America is mainly driven by the increasing adoption of integrated enterprise and business solutions for more flexible and agile business processes and operations. The demand for wireless hotspots and Wi-Fi solutions and services is expected to increase due to the rise in wireless technology investments by the major companies in this region. The key players in the network devices market in the US and Canada are making efforts to offer the largest suite of networking products and solutions, thereby providing a great opportunity for regional companies to increase their business footprint. The presence of the major networking solution and service providers, including Cisco Systems, Aruba, Juniper Networks, and Extreme Networks, in this region is a major factor responsible for the growth of the North American market. To strengthen their market presence, these networking solution and service providers are launching new products and services in the market. This is expected to foster the growth of the network devices market in North America.