The network devices market size was valued at USD 28.09 Billion in 2022 and is projected to reach USD 50.78 Billion by 2031, expanding at a CAGR of around 6.8% during the forecast period, 2023-2031. The growth of the market is attributed to the rising adoption of IoT devices and increasing demand for smart homes and buildings.
Network devices are hardware components that are used to link fax machines, printers, computers, and other electronic devices to a network. These devices efficiently transfer data across several networks, securely, and correctly. Network equipment can be either intra- or inter-networked. A NIC card or RJ45 connection is an installed device, whereas a router, switch, or other network device is a network component.
Deploying a Wi-Fi network enables businesses to quickly create and link commercial apps. To streamline business operations and provide new income opportunities, core industrial sectors are eager to automate and digitalize their business processes. The Covid-19 pandemic affected the demand and supply of network devices market.
Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Network Devices Market Trends, Drivers, Restraints, and Opportunities
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Increased use of smartphones and improved connectivity is estimated to drive the demand for connected devices.
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The development of cellular-based network devices is anticipated to be fueled by telecom companies' growing investments in wireless network infrastructure.
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Demand for network devices including routers, gateways, and access points is anticipated to increase as the number of Internet users is projected to expand rapidly in the coming years.
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Data privacy is the key factor anticipated to hinder the market growth during the forecast period.
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Advent of IIoT and industry 4.0 in wireless networking is expected to create immense opportunities for the market players during the forecast period.
Scope of the Network Devices Market Report
The report on the global network devices market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Network Devices Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023 – 2031
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Segmentation
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Types (Outdoor and Indoor), Device Types (Access Points, Gateways, and Routers), Connectivity (LoRa, Wi-Fi + Others, Cellular, Wi-Fi, and Others), Applications (Transportation Networking, Industrial Networking, Enterprise Networking, Commercial Networking, and Residential Networking)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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TP-LINK; Teltokina Networks; Sierra Wireless; Siemens; Schneider Electric; Robustel; Nokia; Multitech; Moxa; Lantronix; Juniper Networks; Inseego; Huawei; HP Enterprise; HMS Networks; General Electric; Extreme Networks; D-Link; Digi International; Cradlepoint; Cisco Systems; Casa Systems; Belkin International; ASUSTek Computer; Advantech; and Adtran
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Network Devices Market Segment Insights
The indoor segment accounted for a major market share in 2021
Based on types, the market is bifurcated into outdoor and indoor. The indoor segment accounted for a major market share in 2021. Every indoor access point has a different signal range for each individual device. Factors such as wireless protocol an access point uses, power of its device transmitter, types of physical barriers and radio interference in the immediate vicinity all determine the range of an access point.
A Wi-Fi network's range can be reduced by up to 25% by physical barriers like brick walls and metal frames or sheathing. Every time a wireless signal comes into contact with an obstacle, its strength decreases; this typically occurs indoors due to walls, flooring, and even the electronic interference brought on by appliances.
The routers segment is estimated to grow at a rapid pace during the forecast period
On the basis of device types, the market is segregated into access points, gateways, and routers. The routers segment is estimated to grow at a rapid pace during the forecast period. Escalating demand for high-speed Internet connectivity and expanding use of smart devices like smartphones, tablets, and smart TVs are fueling the demand for wireless routers in the residential sector.
The growth of the segment is attributed to rising adoption of virtualization, expanding cloud networking, and rising demand for Internet-based devices in commercial, enterprise, and industrial applications. Industrial routers provide the communications framework for applications used in industry and utilities that operate in both indoor and outdoor settings.
The cellular service providers like AT&T, Verizion, and Vodafone also need to certify cellular-based industrial routers. Additionally, cellular service providers including AT&T, Verizion, and Vodafone need to certify their cellular-based industrial routers to be compatible for connectivity. Some industrial routers also include SCADA compatibility, in order to work with industrial machinery and equipment that employs standardized SCADA communication.
The Wi-Fi segment is projected to expand at a high CAGR during the forecast period
In terms of connectivity, the market is fragmented into LoRa, Wi-Fi + others, cellular, Wi-Fi, and others. The Wi-Fi segment is projected to expand at a high CAGR during the forecast period. Wi-Fi provides connections between devices so they can send information directly to one another or through large networks. It is a core technology for the Internet of Things and mostly operates between the frequencies of 2.4 and 5.0 GHz.
Wi-Fi connectivity offers the best performance, range, and overall value for routers, gateways, and access points, ranging from Wi-Fi 5 to new Wi-Fi 6 and 6E models. A cable is used to link a Wi-Fi router and modem together. This makes it possible for it to send information to and receive information from the Internet.
The router then establishes and interacts with the Wi-Fi network in the house using built-in antennas, granting Internet access to all the devices connected to the network.
The enterprise networking segment is anticipated to account for a key market share
Based on applications, the market is divided into transportation networking, industrial networking, enterprise networking, commercial networking, and residential networking. The enterprise networking segment is anticipated to account for a key market share during the forecast period. The enterprise network is commonly deployed at offices and large organizations.
It consists of the IT infrastructure that large and medium-sized businesses utilize to link applications, devices, and users. The growth of the segment is attributed to increasing adoption of virtualized technologies, expansion of cloud networking, and growing demand for Internet-based devices. Moreover, government programs that support the industrialization and digitization of developing nations is projected to boost the segment.
North America is anticipated to dominate the market during the forecast period
On the basis of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period. Growth of the market in the region is attributed to increasing implementation of integrated business and enterprise solutions for adaptable and agile corporate operations.
The demand for wireless hotspots and Wi-Fi solutions and services is anticipated to expand as large organizations in this region are investing more in wireless technology. The presence of key market players such as Extreme Networks, Juniper Networks, Aruba, and Cisco Systems in the region is anticipated to drive the market.
Segments
The global network devices market has been segmented on the basis of
Types
Device Types
- Access Points
- Gateways
- Routers
Connectivity
- LoRa
- Wi-Fi + Others
- Cellular
- Wi-Fi
- Others
Applications
- Transportation Networking
- Industrial Networking
- Enterprise Networking
- Commercial Networking
- Residential Networking
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- TP-LINK
- Teltokina Networks
- Sierra Wireless
- Siemens
- Schneider Electric
- Robustel
- Nokia
- Multitech
- Moxa
- Lantronix
- Juniper Networks
- Inseego
- Huawei
- HP Enterprise
- HMS Networks
- General Electric
- Extreme Networks
- D-Link
- Digi International
- Cradlepoint
- Cisco Systems
- Casa Systems
- Belkin International
- ASUSTek Computer
- Advantech
- Adtran
Competitive Landscape
Key players competing in the network devices market include TP-LINK; Teltokina Networks; Sierra Wireless; Siemens; Schneider Electric; Robustel; Nokia; Multitech; Moxa; Lantronix; Juniper Networks; Inseego; Huawei; HP Enterprise; HMS Networks; General Electric; Extreme Networks; D-Link; Digi International; Cradlepoint; Cisco Systems; Casa Systems; Belkin International; ASUSTek Computer; Advantech; and Adtran.
Some of these players are using several business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For instance,
- In June 2021, Cisco introduced a new line-up of Catalyst industrial routers for business networks. These consist of the Cisco IoT Gateway Series and Catalyst 5G Industrial Routers.
- In January 2022, Sierra Wireless announced the release of the AirLink RV50X router, which has been FCC-certified for use on the Anterix 900 MHz spectrum.
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