Network Processor Market is Expected to Rise at a CAGR Of 8.9% during 2021-2028
According to Vantage Market Research, the global network processor market was valued at USD 1.2 Billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% between 2021 to 2028. A network processor is a programmable software device that can be said to be an integrated circuit and is used in the network application domain for connecting network architectural components. Moreover, now in the field of telecommunications, analogous signals are replaced with data packets and this has contributed to the growth of integrated circuits of the network processor market as they perform the function of managing these data packets.
Wide range of applications in data management to spur the network processor market
The increasing adoption of network processors and a wide range of functions is driving the target market growth. In the modern world, network processors are developed from simpler designs and then converted to integrated circuits with the help of programmable software and with performing a variety of manipulation and operation functions in the data packets. Furthermore, network processor plays a crucial role in the management of network traffic, packet inspection, monitoring data, queue management in a huge amount of data, and in encryption.
The COVID-19 outbreak has significantly impacted the network processor market as it has disrupted the entire production and supply chain. Moreover, the pandemic has caused uncertainty about the future and has impacted the network processor industry by causing financial impacts all over the globe.
The network processor market is segmented on the basis of product the network processor market is bifurcated into higher speed network processors and lower speed network processors. The market can also be segmented on the basis of applications into two major applications that is commercial applications and home applications.
Asia-Pacific region is expected to grow at a high rate over the coming years and is the dominating region. This is attributable as due to technological advancements and the companies in this region are aiming at quality and to improve profitability. Moreover, process improvements, equipment up-gradation, and innovations lead to regional growth for network processors.
Some of the major players operating in the global network processor market include CISCO, Applied Micro Circuits, Intel, Qualcomm, Marvell, Ericsson, Fortinet, Broadcom, Mellanox (ezchip), ARM, and Cavium, among others.,