Networking Hardware Market Report: Trends, Forecast and Competitive Analysis to 2031

Networking Hardware Market Trends and Forecast

The future of the global networking hardware market looks promising with opportunities in the telecom operator, internet service provider, cable operator, business & government, and personal user markets. The global networking hardware market is expected to grow with a CAGR of 4.5% from 2025 to 2031. The major drivers for this market are the increasing internet penetration, the growing demand for faster & reliable connectivity, and the rising adoption of IoT devices & smart technologies.

Lucintel forecasts that, within the type category, switches are expected to witness higher growth over the forecast period. Within the application category, internet service providers are expected to witness the higher growth. In terms of region, APAC is expected to witness the highest growth over the forecast period. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.

Emerging Trends in the Networking Hardware Market

With several key emerging trends, including the adoption of 5G, Wi-Fi 6, and a direction toward software-defined networking (SDN) along with edge computing transforming how networks should be designed, built, and later managed, networks are being radically transformed. Along with the increasing desire for faster as well as much more reliable connections in the future, networking hardware too needs to evolve along with the technology.

• 5G Deployment: This is among the most recent trends in networking hardware. 5G promises better speeds and latency, pushing demand for novel hardware solutions in a market already growing. Companies have taken the direction of developing new 5G-compatible devices, base stations, and antennas that are expected to handle increased connectivity between different industries and other businesses.
• Wi-Fi 6 Adoption: The adoption of Wi-Fi 6 technology is increasing since wireless connectivity is essential and becomes indispensable in most applications. Wi-Fi 6 provides faster speeds, greater capacity, and better performance in congested environments. Companies for networking hardware focus on making sure that these new devices, including routers and access points, meet high requirements for seamless, high-speed wireless connectivity.
• Software-Defined Networking (SDN): SDN is gaining momentum as companies are looking for more flexible and programmable networking solutions. This technology enables centralized control of networks, thus allowing for better resource utilization and easier management of complex networks. The shift towards SDN is creating an increased demand for hardware that supports this model, such as SDN-enabled switches and routers.
• Edge Computing: The need for real-time data processing is the primary driver for edge computing. It helps reduce latency and improves network efficiency by processing data closer to the source. Networking hardware manufacturers are investing in edge solutions that enable faster processing and lower reliance on centralized cloud data centers, which can lead to more efficient, scalable networks.
• Increased Cybersecurity Focus: The rise in data breaches and cyber-attacks has led to a growing demand for networking equipment that incorporates high-security features. From hardware firewalls to intrusion detection systems, companies are focusing on developing secure networking solutions. This trend is pushing networking hardware companies to prioritize security in their product development to protect sensitive data.

With the advent of 5G, Wi-Fi 6, SDN, edge computing, and cybersecurity, emerging trends are reshaping the networking hardware market. While these developments continue to push the boundaries of what companies can deliver and create a new demand for complex solutions, companies are compelled to innovate and keep pace with new technological and consumer requirements. This will ensure rapid changes in the market as these trends spread globally.

Recent Developments in the Networking Hardware Market

The recent developments across the networking hardware market across different regions are remarkably noted. These would include actual progress in 5G deployment, the rollout of Wi-Fi 6, and the integration of SDN technologies. Companies are indeed trying to meet the climbing demand for faster, reliable connectivity with innovative hardware solutions. The progresses change the network infrastructure.

• 5G Infrastructure Investment: Significant investments in 5G infrastructure drive the networking hardware market. Network providers are installing new hardware, which includes base stations, antennas, and routers, to support faster speeds and lower latency promised by 5G technology. The expansion is supposed to accelerate global connectivity for industries like healthcare, automotive, and manufacturing that can utilize next-gen technologies.
• Wi-Fi 6 Expansion: Wi-Fi 6 technology has been widely expanding, especially with the increasing demand for wireless connectivity. The new generation of Wi-Fi technology provides faster speeds, better ranges, and greater capacities, making it suitable for crowded offices or public spaces. Hardware manufacturers are coming up with more Wi-Fi 6-enabled devices, such as routers, access points, or network adapters, to expand further into this increasing demand.
• SDN Solutions: Adoption of SDN has created a niche in more programmable, more flexible networks that are changing the rules and standards for the networking hardware market. This will allow businesses to centralize control over the network and improve its efficiency and scalability. The increasing complexity of modern network infrastructures will require more sophisticated hardware development for switches and routers compatible with SDN.
• Edge Computing Integration: The requirement for real-time data processing is driving the growth of edge computing solutions. Companies are integrating edge computing capabilities into networking hardware to process data closer to its source, reducing latency and increasing overall efficiency. This is particularly important for applications such as IoT, autonomous vehicles, and smart cities, which rely on quick data processing.
• Cybersecurity Hardware Solutions: The more the threats of cyberattacks, the more the companies are concerned about the development of secure networking hardware. This includes products with built-in encryption, firewalls, and advanced intrusion detection systems. The demand for cybersecurity hardware will increase as businesses seek to protect sensitive data from breaches and ensure the integrity of their networks.

In fact, recent changes in the market, including the launch of 5G, Wi-Fi 6 expansion, and cybersecurity trends, are transforming the landscape. In turn, with further acceleration in technological advancement, networking hardware companies are introducing increasingly complex, secure, and efficient solutions that better serve businesses and consumers.

Strategic Growth Opportunities in the Networking Hardware Market

The networking hardware market is full of strategic growth opportunities through various applications due to demands for faster connectivity, real-time data processing, and increasing network security. Opportunities are majorly found in consumer, business, telecommunications, IoT, and cloud computing as innovations in networking hardware are supporting the next-generation technologies.

• Consumer Connectivity: Consumers want higher and faster speeds of the internet. In a wireless technology space, there are various ways this will evolve and advance with 5G. There will be many networking hardware opportunities here. High-speed internet, Wi-Fi 6, and 5G connectivity can enable seamless and reliable streaming, gaming, and smart home devices.
• Business Networks and SDN: Networking hardware companies stand to benefit immensely from the software-defined networking revolution. SDN makes it easier for businesses to develop flexible, scalable networks with low cost and high efficiency in management. Organizations increasingly look for compatible SDN devices like switches and routers that would make the network operate with improved operational efficiency and help scale growth.
• Telecommunications Infrastructure: The largest growth driver for the networking hardware market is the telecommunication sector, which is investing significantly in 5G and fiber-optic infrastructure. Networking hardware companies can take advantage of this expansion by offering high-performance hardware solutions that facilitate faster, more reliable communication networks for consumers and businesses.
• Internet of Things (IoT): As the IoT market grows, there is a need for networking hardware that can handle the massive volume of connected devices. Opportunities exist in developing specialized hardware to support IoT networks, including routers, gateways, and sensors that ensure fast, secure, and reliable communication between devices.
• Cloud Computing: Cloud computing is an opportunity for networking hardware companies as the companies are moving towards the cloud to store data and offer services. High-performance networking hardware is critical for ensuring speed and reliability in cloud networks. The trend can be exploited by manufacturers to develop hardware solutions that can support the increasing demand for cloud services.

The networking hardware market is offering a large number of strategic growth opportunities, primarily in the consumer, business, telecommunications, IoT, and cloud computing segments. Innovating companies and those that could fulfill the ever-changing needs of these industries by SDN, 5G, and IoT solutions are very likely to do well in this fast-changing market.

Networking Hardware Market Driver and Challenges

The drivers for the networking hardware market are technological advancements, the rise of IoT and 5G, and increasing demand for faster connectivity. However, companies face challenges such as regulatory hurdles, cybersecurity concerns, and the need for continued investment in R&D to stay competitive in a fast-evolving industry.

The factors responsible for driving the networking hardware market include:

1. Technological Advancements: The areas of 5G and Wi-Fi 6, as well as SDN, are driving the growth of networking hardware. It helps the consumers reach faster speeds, lower latency, and more reliable connections that have been a need across the industry where networking equipment has been a need.

2. Expanding Demand for IoT Devices: The growth in IoT devices is fueling the demand for networking hardware to cater to massive networks of connected devices. Manufacturers are coming up with hardware solutions like routers and gateways that ensure secure as well as reliable communication between IoT devices, which is further growing in the market.

3. 5G Rollout: The rollout of 5G networks around the world is a significant growth driver for the networking hardware market. The requirement for more advanced infrastructure, such as base stations, antennas, and routers, is fueling demand for next-gen networking hardware solutions. It promises to revolutionize connectivity, and this is likely to lead to huge growth in the market.

4. Cloud Computing Growth: Scalable and on-demand growth in cloud computing services has increased the demand for networking equipment that ensures fast, reliable connectivity of data across cloud applications. Companies are investing in hardware to handle this new traffic and to provide high availability, which is driving innovation in the networking hardware industry.

5. Growing Demand for Secure Networking Hardware: With increased sophistication in cyber threats, there is an increasing need for secure networking hardware. Companies are designing devices with more advanced security features such as encryption, firewalls, and intrusion detection systems to protect sensitive data and maintain the integrity of networks.

Challenges in the networking hardware market are:

1. Regulatory challenges: The networking hardware market faces complex regulatory requirements, especially in regions with strong data privacy regulations. Companies must work through these regulations when designing and deploying networking hardware, which adds costs and slows down product development.

2. Cybersecurity Threats: As networks become more complex and interconnected, the risk of cyber threats increases. Companies have to invest in cybersecurity features and ensure that their hardware solutions are resilient against attacks, which can be costly and time-consuming.

3. High R&D Costs: This is the biggest area of expense where research and development in creating advanced networking hardware solutions take most of the company's investment. Since innovation needs constant updating, innovation is bound by cost control while keeping pace with the speed required in this industry.

The networking hardware market is an area where massive advances in technologies, or evolutions of IoT and 5G connectivity, and developing cloud computing create a significant opportunity space. However, regulatory hurdles, cybersecurity concerns, and high R&D costs will have to be addressed for companies to be more competitive while capitalizing on new opportunities.

List of Networking Hardware Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies, networking hardware companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the networking hardware companies profiled in this report include-

• Arris
• Belkin
• Cisco
• D-Link
• Netgear

Networking Hardware Market by Segment

The study includes a forecast for the global networking hardware market by type, application, and region.

Networking Hardware Market by Type [Value from 2019 to 2031]:

• Switches
• Routers
• Networking WLAN Equipment
• Set-Top Boxes
• Network Servers
• Gateway
• Others

Networking Hardware Market by Application [Value from 2019 to 2031]:

• Telecom Operators
• Internet Service Providers
• Cable Operators
• Business & Government
• Personal User

Networking Hardware Market by Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Networking Hardware Market

With increased and constantly improved technology, major global markets show rapid changes and progression in networking hardware. Growing requirements for higher internet speeds and exponentially increasing data are the key growth promoters. Among others, the most significant contributors and players are from the United States, China, Germany, India, and Japan, respectively. In their respective markets, such countries show an individualistic path of trend changes with different innovations.

• United States: It is the hub of innovation where great leaps in networking hardware have been seen. The main factors driving this are increased demand for faster internet speeds, greater connectivity, and innovation in 5G, Wi-Fi 6, and software-defined networking (SDN). Companies are focusing on upgrading infrastructure to support increased data traffic from cloud services, AI, and the Internet of Things.
• China: China is investing heavily in next-gen networking infrastructure, especially in the deployment of 5G networks. The country is at the forefront of developing low-cost networking hardware, which will expand connectivity in rural and remote areas. China is also focusing on the development of 6G technology, which will set the stage for future networking hardware innovations.
• Germany: The networking hardware market in Germany is driven by a strong industrial base and demand for high-performance solutions. The focus will be on the integration of networking hardware with Industry 4.0, which requires robust, secure, and high-speed connections. There will be a drive for greater automation in networking and a move to next-generation wireless technologies like 5G for industrial applications.
• India: India's networking hardware market is booming, backed by the increasing penetration of the internet and the growth of digitally enabled services. With regards to 5G adoption by the country, there is a great demand for cheap networking hardware which can support this growing consumption of data. The diversification of the Indian tech sector into expansion is also leading to more locally produced hardware.
• Japan: Japan is putting emphasis on 5G infrastructure by promoting various hardware manufacturing companies to gain momentum on the newly formed wireless technology. Smart city initiatives in the country are also investments in advanced networking hardware to help IoT deployments, and the country's already robust tech sector continues using AI and cloud computing innovations to enhance networking capabilities.

Features of the Global Networking Hardware Market

Market Size Estimates: Networking hardware market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.

Segmentation Analysis: Networking hardware market size by type, application, and region in terms of value ($B).

Regional Analysis: Networking hardware market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the networking hardware market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the networking hardware market.

Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers the following 11 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the networking hardware market by type (switches, routers, networking WLAN equipment, set-top boxes, network servers, gateway, and others), application (telecom operators, internet service providers, cable operators, business & government, and personal user), and region (North America, Europe, Asia Pacific, and the Rest of the World)?

Q.2. Which segments will grow at a faster pace and why?

Q.3. Which region will grow at a faster pace and why?

Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?

Q.5. What are the business risks and competitive threats in this market?

Q.6. What are the emerging trends in this market and the reasons behind them?

Q.7. What are some of the changing demands of customers in the market?

Q.8. What are the new developments in the market? Which companies are leading these developments?

Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?

Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?

Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

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