Networking Equipment Market

The global Networking Equipment Market is valued at USD 140.1 Billion in 2022 and is projected to reach a value of USD 184.47 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 3.5% between 2023 and 2030.

Premium Insights

The growth and evolution of the {{key-word}} market is propelled via numerous key market drivers. One primary driver is the worldwide demand for high-speed and reliable internet connectivity, driven by way of the growing use of virtual devices and the developing consumption of data. This demand is similarly amplified through transformative technologies like 5G and edge computing, prompting organizations to improve and amplify their networking infrastructure. For instance, During the Huawei Global Analyst Summit (HAS) 2022 held in April 2022, Huawei Technologies Co., Ltd. declared its plans to explore uplink spectrum reconstruction, ultra-high bandwidth, green air interfaces, ELAA-MM, and native intelligence. These endeavors aim to support operators in constructing '1+1+N' 5.5G networks and enhancing network capabilities. Additionally, the rise in remote work and the need for seamless communication also contribute to the markets expansion.

• The adoption of IoT and Industry 4.0 initiatives across industries as part of digital transformation further emphasizes the need for advanced networking solutions
• Asia Pacific generated more than 35.6% of revenue share in 2022
• North America is expected to grow at the quickest rate from 2023 to 2030
• Hardware segment accounted for the largest market growth. It contributed over 56.8% of the total revenue share in 2022
• 4G LTE segment accounts for the most significant market share of 70.5% in 2022
• Public Network segment lead the market in 2022 with market share of 68.5%
• Telecom Operators segment accounts for largest market share of 60.3%

Economic Insights

The Networking Equipment market is a strong and dynamic landscape this is influenced through various factors shaping global financial developments. With the increasing demand for networking system driven by factors together with rapid digital transformation, higher internet accessibility, and the introduction of technologies like 5G and edge computing, the market is expected to experience substantial increase. The importance of the sector within the economy is inspired via the interaction among urbanization, government investment in infrastructure, and the changing desires of various industries.

Top Market Trends

• 5G Adoption and Infrastructure Rollout: The growth of the networking equipment market is substantially inspired through the substantial adoption of 5G networks. 5G offers significantly higher speeds, reduced latency, and greater capability in evaluation to preceding networks, thereby amplifying the need for networking system with super overall performance.
• Software-Defined Networking (SDN) and Network Function Virtualization (NFV): The design, management, and operation of networks are being revolutionized via SDN and NFV. SDN separates the control plane and data plane, taking into account highly adaptable and customizable networks. however, NFV virtualizes network functions, main to reduced hardware expenses and improved flexibility.
• Cloud Networking and Edge Computing: With the migration of workloads to the cloud, cloud networking solutions are increasingly becoming popular. those solutions permit businesses to centrally manage and control their networks, at the same time as edge computing ensures that processing and storage is brought closer to the end user. This proximity reduces latency and enhances normal overall performance.
• Network Security and Cybersecurity: As cyberattacks keep to enhance, businesses are putting a more emphasis on network security. To safeguard networks from evolving threats, networking equipment vendors are integrating advanced protection functions like firewalls, intrusion detection systems, and intrusion prevention systems.
• Artificial Intelligence (AI) and Machine Learning (ML) in Networking: The software of AI and ML in network management goals to automate tasks, improve overall performance, and bolster security. via their use, these technology can observe huge community data to detect patterns, foresee ability issues, and swiftly decide on actions.
• Internet of Things (IoT) and Device Connectivity: The increasing variety of IoT devices is generating a substantial need for connectivity solutions. companies that produce networking system are running on developing innovative solutions to cater to the various connectivity necessities of IoT gadgets. This includes the introduction of low-power wide-area networks (LPWANs) and mobile connectivity options.

Market Segmentation

Networking Equipment {{Segmentation_Ext}}

Based on Component

Hardware holds the largest share

In 2022, the hardware segment of the Networking Equipment market holds the largest global share, accounting for more than 56.8% of total market revenue. The increasing adoption of cloud computing, facts facilities, and organization networks drives the call for for additives like routers, switches, firewalls, and access points, thereby main to the growing deployment of network hardware. there is also a developing need for excessive-performance networking infrastructure, which incorporates optical transport gadget, network processors, and network controllers. moreover, the adoption of emerging technologies together with 5G, artificial intelligence (AI), and the internet of things (IoT) is growing new use cases and driving market growth.

Based on Connectivity

4G LTE accounts for largest market share

The Networking Equipment market is dominated by 4G LTE due the various factors including its widespread adoption by mobile network operators worldwide, making it the most common cellular technology. The affordability and accessibility of 4G LTE devices have increased, making them available to a wide range of consumers. Additionally, its superior performance, with faster speeds and lower latency compared to previous technologies, makes it ideal for data-intensive activities such as streaming video and online gaming.

Based on Network Type

Public Network lead the market in 2022

In 2022, public network accounted for the majority share of the Networking Equipment market. The increasing need for internet access, driven by the widespread usage of smartphones, tablets, and connected devices, is a significant factor contributing to the growth of public networks. The expansion of broadband infrastructure, such as fiber-optic and cable networks, is improving connectivity speeds and enabling the emergence of new applications. The widespread adoption of mobile networks, particularly 4G LTE and 5G, is extending the coverage of public networks and providing connectivity to remote areas. Additionally, the migration of enterprise networks to the cloud is amplifying the demand for public network services.

Based on End-User

Telecom Operators will dominate the market

Telecom Operators will dominate the Networking Equipment market. The continuous expansion of network infrastructure by telecom operators, fueled by the growing demand for data and connectivity, requires significant investments in networking equipment such as routers, switches, and firewalls. The implementation of 5G networks is particularly influential in driving growth, leading to substantial investments in advanced networking equipment.

Based on Region

Asia Pacific will lead the market

The Asia Pacific region is set to become the leader in the global market for Networking Equipment due to the remarkable increase in internet penetration, which surpasses any other region and is still growing rapidly. This surge is creating a strong demand for networking equipment to connect homes, businesses, and a wide range of devices. Moreover, the Asia Pacific region is the most heavily urbanized in the world, highlighting the need for high-speed networking infrastructure to support the rapid development of smart cities and other urban applications.

Competitive Landscape

The Networking Equipment market is highly competitive, with a mix of global players and specialized providers offering a wide variety of solutions. The market is constantly changing due to technological advancements such as the adoption of 5G, edge computing, and software-defined networking (SDN). Companies are forming partnerships, collaborations, and making strategic acquisitions to enhance their capabilities and meet the evolving needs of customers. As the industry focuses on solutions that support the requirements of the digital age, the competitive landscape remains flexible, with agility and innovation being crucial factors for success in this rapidly evolving market.

The players in the global Networking Equipment market include Telefonaktiebolaget LM Ericsson among others.

Recent Market Developments

• April 2022: Turkcell and Ericsson have formed a strategic collaboration to drive digital transformation in various industries in Turkey. They will implement Ericsson Private Network solutions in sectors such as smart manufacturing, oil and gas, ports, airports, energy and utilities, and mining. The goal is to identify and develop specific use cases that cater to each industrys needs. This partnership not only meets the connectivity requirements of these sectors but also encourages collaboration between local and global Industry 4.0 partners. Through their synergy, Turkcell and Ericsson aim to advance industrial solutions and contribute to Turkeys digital evolution in the industrial landscape.
• March 2022: Avaya (NYSE: AVYA) and Alcatel-Lucent Enterprise have formed a strategic partnership to broaden the reach of Avaya’s OneCloud CCaaS solutions to ALEs customers worldwide. This collaboration also enables Avaya customers to access ALEs digital networking solutions on a global scale.

Segmentation of the Global Networking Equipment Market