Computer Networking Equipment Manufacturing
Description
Companies in this industry primarily manufacture equipment used to transmit data across communications networks. Major companies include Cisco Systems, Dell, Hewlett Packard Enterprise, and Juniper Networks (all based in the US), as well as Huawei (China) and Nokia (Finland).
The global enterprise network equipment market is valued at over $80 billion in 2025 and wis expected to reach about $138 billion in 2030, exhibiting a compound annual growth rate (CAGR) of 11.35% during the period, according to Mordor Intelligence. The demand is driven by the popularity of wireless equipment and strong demand for internet-enabled devices.
The US computer networking equipment manufacturing industry includes more than 200 establishments with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Large companies have advantages in economies of scale in broad product offerings and services. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The industry is highly concentrated: the 50 largest firms account for about 95% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of networking equipment manufacturers include switches, routers, and network control equipment. Major services of equipment suppliers include system and network design, software development, installation, monitoring, and maintenance. Other hardware and software products include intrusion prevention devices, remote termination equipment, firewalls, and network appliances.
Most major computer networking equipment companies have outsourced volume production of standard products to contract manufacturers. Equipment companies specialize in system design and software development; they maintain limited production facilities to produce the initial versions of new products for in-house testing and development. Initial versions are built using standard components to verify design. During final development, some product functions may be converted to application specific integrated circuits (ASICs) to improve performance. Design and quality-control teams from the networking equipment company, located at the contract manufacturer's facilities, resolve manufacturing issues, ensure integration of design changes, and oversee testing and acceptance prior to shipment.
Since components, such as ASICs and circuit boards, may be manufactured in one location and shipped to the final assembly plant, manufacturing locations are chosen to minimize transportation and labor costs. Volume manufacture is highly automated, but requires skilled labor for final assembly, testing, and quality assurance. To minimize equipment failures at initial installation and operation, large complex equipment is operated at higher temperatures (a process known as "burn-in") during final test to eliminate marginal components.
The global enterprise network equipment market is valued at over $80 billion in 2025 and wis expected to reach about $138 billion in 2030, exhibiting a compound annual growth rate (CAGR) of 11.35% during the period, according to Mordor Intelligence. The demand is driven by the popularity of wireless equipment and strong demand for internet-enabled devices.
The US computer networking equipment manufacturing industry includes more than 200 establishments with combined annual revenue of about $5 billion.
COMPETITIVE LANDSCAPE
Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Large companies have advantages in economies of scale in broad product offerings and services. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The industry is highly concentrated: the 50 largest firms account for about 95% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of networking equipment manufacturers include switches, routers, and network control equipment. Major services of equipment suppliers include system and network design, software development, installation, monitoring, and maintenance. Other hardware and software products include intrusion prevention devices, remote termination equipment, firewalls, and network appliances.
Most major computer networking equipment companies have outsourced volume production of standard products to contract manufacturers. Equipment companies specialize in system design and software development; they maintain limited production facilities to produce the initial versions of new products for in-house testing and development. Initial versions are built using standard components to verify design. During final development, some product functions may be converted to application specific integrated circuits (ASICs) to improve performance. Design and quality-control teams from the networking equipment company, located at the contract manufacturer's facilities, resolve manufacturing issues, ensure integration of design changes, and oversee testing and acceptance prior to shipment.
Since components, such as ASICs and circuit boards, may be manufactured in one location and shipped to the final assembly plant, manufacturing locations are chosen to minimize transportation and labor costs. Volume manufacture is highly automated, but requires skilled labor for final assembly, testing, and quality assurance. To minimize equipment failures at initial installation and operation, large complex equipment is operated at higher temperatures (a process known as "burn-in") during final test to eliminate marginal components.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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