The global network devices market size increased from USD 24.7 billion in 2021 to USD 26.4 billion by 2022. Total network devices sales are slated to surge at 5.6% CAGR between 2022 and 2032, taking the overall market valuation to USD 45.5 billion by the end of 2032.
Indoor network devices segment is expected to remain the most remunerative revenue-generating segment, accelerating at a steady CAGR of over 5.5% during the assessment period.
Rising penetration of high-speed internet and digitalization across the world is a key factor driving the global network devices industry forward. Similarly, increasing usage of network devices in residential networking, enterprise networking, and industrial networking is expected to boost network device sales through 2032.
Physical devices that permit hardware on a computer network to communicate and interact with one another are called network devices or network hardware. In simple terms, network devices are devices or components that connect computers, mobiles, fax machines, printers, and other electronic devices to the network.
Network devices include hubs, routers, gateways, bridges, modems, and several other devices that help to connect hardware with a network. These devices have become essential for internetworking.
The key drivers that are expected to propel network device demand include increasing usage of internet by people, especially of the age-group 15 to 45 years. From this age group, around 75% of the world population uses internet.
Over the years, internet usage has increased significantly, particularly across developed and developing nations such as the United States, Germany, France, China, India, and Japan. For instance, according to the International Telecommunication Union’s (ITUs) latest data, total number of people using internet worldwide reached 4.9 billion in 2021, up from 4.1 billion recorded in 2019.
Right from using it for calling purposes and gathering information from remote resources to web browsing, internet has become one of the most powerful tools in the world. Thus, such staggering growth in the use of internet will boost demand for network devices such as routers, hubs, and switches during the forecast period.
Smartphones nowadays are using 4G-LTE and 5G internet technologies to provide internet facilities and this has created huge opportunities for telecom service providers. Developing nations are shifting to advanced internet facilities from 3G to 4G, 5G, and Wi-Fi with 4K video quality features.
Growing popularity of cloud storage and adoption of advanced technologies are expected to boost network device sales during the forecast period. Companies are utilizing cloud technologies to store a large amount of data online.
As per the Arcserve report, by 2025 a total of 100 Zettabytes of data will be stored in cloud. Cloud infrastructure services are generating USD 178 Billion/ year in revenue. Thus, growth in cloud technology will swell the network devices demand.
Growing usage of advanced technologies such as Artificial Intelligence (AI) and Internet of Things (IoT) in manufacturing industry will generate lucrative growth opportunities for network device manufacturers.
Further, rapid shift towards smart homes and adoption of connected devices are expected to help the global network devices industry thrive swiftly over the next ten years.
| Attributes | Key Insights |
|---|---|
| Network Devices Estimated Value (2022) | USD 26.4 billion |
| Projected Market Value (2032) | USD 45.5 billion |
| Value-based CAGR (2022 to 2032) | 5.6% |
| USA Market CAGR (2022 to 2032) | 4.5% |
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According to Future Market Insights’ latest report, historically, from 2017 to 2021, the value of the network devices industry increased at around 6.2% CAGR and reached USD 24.7 billion at the end of 2021.
However, for the projection period between 2022 and 2032, global network device demand is projected to rise at 5.6% CAGR. The worldwide market for network devices is likely to create an absolute $ opportunity of USD 19.1 billion during the projection period.
Rising penetration of internet across the world and increasing population of mobile users are key factors driving the global network devices industry forward.
Similarly, growing popularity of connected devices and cloud platforms along with high penetration of digitalization is expected to elevate network devices demand during the projection period.
Rise in Internet Proliferation to Boost Network Devices Industry
Over the years, there has been a dramatic rise in internet users worldwide due to rising penetration of smartphones, increasing popularity of social media, and availability of high-speed internet. For instance, as per the World Population Review, 4.9 billion people (around 69% of the world population) actively used internet in 2022.
Development and popularity of cheap mobiles have made online world more accessible to the general population by revolutionized the way people access internet. It is estimated that globally, around 268 million smartphone users were added between 2021 to 2022. This will continue to act as a catalyst triggering growth in the global network devices industry.
Key Factors Limiting Expansion of Network Devices Market
Potential Chances of Data Breach Limiting Market Expansion
Data security and privacy are the main issues that need to be taken into consideration when large volumes of data are being processed and transferred in various industries. Every endpoint where data is being transferred to or from system, every sensor that receives data signals, and every gateway where data signals are carried has now become a potential target for hackers.
All nodes, sensors, and gateways must be protected and secured from external attacks. Industries need to protect their systems from threats such as data breaches and data espionage (unethical data stealing for personal use).
If it remains unchecked, it can allow hackers to steal sensitive data that could result in huge losses in monetary form or could help competitor firms get an edge over the company.
For instance, as per a report published by the Identity Theft Resource Center (ITRC), 1862 data breaches occurred in 2021 in the United States as compared to 1108 breaches in 2020. This is acting as an impediment to the expansion of the market.
Principal Consultant
Regionally, North America is projected to remain at the epicenter of network devices industry throughout the forecast period. FMI estimates North America market to reach a valuation of USD 18.921 billion by 2032.
Key factors driving North America market include increasing demand for Wireless Fidelity (Wi-Fi) and wireless hotspots, growing penetration of high-speed internet, and rising popularity of enterprise networking and industrial networking.
Usage of high-speed internet for complex business entities and operations has made sure that business processes are becoming fast and flexible. This in turn is creating a significant demand for network devices.
Key players in the United States such as Juniper Networks, Extreme Networks, Adtran, General Electric, and CISCO are offering large suites of networking products and solutions to customers. The presence of network device companies such as Aruba, Extreme Networks, and CISCO is an important supporting expansion of North America market.
According to the Annual Report (2018 to 2023) of Cisco, by 2023, North America will have around 345 million internet users which will be 92% of regional population. Further, it is estimated that the region will have 5 billion network devices/connections and 329 million mobile users in 2023. Such a rapid increase in the population of internet users is going to boost demand for network devices during the next ten years.
| Country | USA |
|---|---|
| Historical CAGR (2017 to 2021) | 4.8% |
| Anticipated CAGR (2022 to 2032) | 4.5% |
| Market Value (2032) | USD 14.3 billion |
| Country | United Kingdom |
|---|---|
| Historical CAGR (2017 to 2021) | 5.1% |
| Anticipated CAGR (2022 to 2032) | 4.8% |
| Market Value (2032) | USD 2.1 billion |
| Country | China |
|---|---|
| Historical CAGR (2017 to 2021) | 7.7% |
| Anticipated CAGR (2022 to 2032) | 6.5% |
| Market Value (2032) | USD 3.9 billion |
| Country | Japan |
|---|---|
| Historical CAGR (2017 to 2021) | 5.5% |
| Anticipated CAGR (2022 to 2032) | 5.0% |
| Market Value (2032) | USD 3.3 billion |
| Country | South Korea |
|---|---|
| Historical CAGR (2017 to 2021) | 7.0% |
| Anticipated CAGR (2022 to 2032) | 6.0% |
| Market Value (2032) | USD 1.8 billion |
Increasing Penetration of Internet and Connected Devices Making the USA a Dominant Market
According to Future Market Insights, the United States is set to retain its dominance in the global market for network devices during the forecast period, accelerating at 4.5% CAGR. By 2032, the USA network devices market size is expected to reach USD 14.3 billion. It is expected to have an absolute dollar growth of USD 5.1 billion during the projection period.
Rising penetration of internet, especially 5G, high adoption of connected devices, and strong presence of leading network device manufacturers are driving growth in the USA market.
Over the years, there has been a rapid increase in the adoption of technologies such as IoT, smart homes, and 5G internet services, and the trend is expected to further escalate during the forecast period. This is acting as a catalyst triggering network device sales in the country.
According to the United States Census Bureau, nearly 92% of households in the United States had at least one type of computer and 85% had a broadband internet subscription in 2018. With the penetration of 5G network and growing popularity of social media, total population of internet users’ figure across the United States is significantly increasing. Driven by this, network device demand is slated to rise steadily during the projection period.
In households, people are using smartphones and other connected devices either through Wi-Fi or 4G internet services. Also, in commercial and industrial networking, network devices are required in large volumes.
The country is home to several leading network device companies including AdTran CradlePoint, Juniper Networks, and General Electric. These companies are constantly introducing novel products to allow end users to enjoy better network experience.
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Indoor Network Devices Remain Highlight Sought-After Type in the Market
Based on type, the global market for network devices is segmented into indoor network devices and outdoor network devices. Among these, indoor segment holds a prominent share of the global market and it is expected to accelerate at a steady CAGR of 5.5% between 2022 and 2032.
Rising penetration of internet and growing adoption of network devices across residential sector worldwide is driving growth of indoor network devices segment.
Increasing need for high-speed internet services in households due to rapid adoption of smart devices such as smart TVs, smartphones, tablets, and home automation devices, is prompting people to adopt various network devices.
Similarly, rising usage of artificial intelligent devices, virtual reality equipment, and cloud computing technology will positively influence network device demand through 2032.
According to the CICO Annual Internet Report, total count of devices connected to Internet Protocol (IP) networks will be more than thrice the overall population in the world by 2023. Total internet users population is expected to reach 5.3 billion by 2023.
Further, there will be 29.3 billion networked devices by 2023. Out of this, indoor network devices are going to be 74% whereas only 26% of network devices are going to belong to business segment (outdoor network devices).
Enterprise Networking to Generate Growth Opportunities for Network Device Manufacturers
Enterprise networking is expected to remain the most lucrative application for network devices during the forecast period. Future Market Insights predicts the enterprise networking segment to expand at a steady CAGR through 2032, generating lucrative growth opportunities for network device manufacturers.
Growing adoption of enterprise networking across diverse organizations along with increasing usage of network devices such as routers, gateways, modems, etc. in enterprise networking is a key factor driving growth of the target segment.
Similarly, growing popularity of cloud networking and rapid shift towards digitalization will boost growth of the target segment during the assessment period.
Key network device manufacturers and providers include D-Link, Cisco Systems, Schneider Electric, Siemens, Cradle Points, Digi International, Inseego, Juniper Networks, Huawei, HP Enterprises, Sierra Wireless, Nokia, General Electric, Belkin International, Lantronix, Casa Systems, Extreme Networks, and Adtran, Moxa.
New product launches with enhanced features, price reduction, facility expansion, mergers, partnerships, joint ventures, collaborations, and acquisitions are few of the key strategies employed by these companies to increase their revenue share and stay ahead of the competition.
Recent Developments:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 26.4 billion |
| Projected Market Size (2032) | USD 45.5 billion |
| Anticipated Growth Rate (2022 to 2032) | 5.6% CAGR |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, and others. |
| Key Segments Covered | Type, Device Type, Connectivity, Application, and Region |
| Key Companies Profiled | Cisco Systems; Cradle Points; Juniper Networks; Huawei; HP Enterprises; Digi International; Sierra Wireless; Nokia; Inseego; General Electric; Belkin International; Lantronix; Casa Systems; Siemens; Extreme Networks; D-Link; Schneider Electric; Adtran; Moxa |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
India is currently the key market in South Asia & Pacific with an 18.8% market share in 2022.
Demand for network devices globally is likely to surge at 5.6% CAGR through 2032.
The market is valued at USD 26.4 billion in 2023.
Indoor network devices remain dominant and could witness a 5.5% CAGR through 2032.
Enterprise networking is projected to expand at a high CAGR through 2032.
The United States market is poised to lead with almost USD 14.3 billion value in 2023.
The sales of Macarons in the United States and Europe might increase at 7.5% per year till 2033.
The market is valued at USD 1.43 billion in 2023.
The fruit-flavored macaron accounts for over 50% of sales in the United States and Europe.
Sales of macarons in supermarkets are anticipated to witness a high CAGR until 2033.
1. Executive Summary | Network Devices Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Device Type 5.1. 2022 to 2032 5.2. Routers 5.3. Gateways 5.4. Access Points 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Type 6.1. Indoor 6.2. Outdoor 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Connectivity 7.1. 2022 to 2032 7.2. WiFi 7.3. Cellular 7.4. WiFi 7.5. LoRa 7.6. Others 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Application 8.1. 2022 to 2032 8.2. Residential Networking 8.3. Commercial Networking 8.4. Enterprise Networking 8.5. Industrial Networking 8.6. Transportation Networking 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. Middle East & Africa 10. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. Middle East & Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Cisco Systems 17.2. Cradlepoint 17.3. Juniper Networks 17.4. Huawei 17.5. HP Enterprise 17.6. Digi International 17.7. Sierra Wireless 17.8. Nokia 17.9. Inseego 17.10. Teltokina Networks 17.11. Extreme Networks 18. Assumptions & Acronyms Used 19. Research Methodology
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Network Devices Market
