Enterprise Network Equipment Market Size | Industry Insights [2033]

Enterprise Network Equipment Market Overview

Global Enterprise Network Equipment market size is estimated at USD 62457.43 million in 2024 and is expected to reach USD 86546.69 million by 2033 at a 3.7% CAGR.

The enterprise network equipment market plays a critical role in enabling seamless digital communication and data transfer for modern businesses. In 2024, over 2.6 million enterprise-grade routers and switches were installed across global business networks. Enterprise network hardware includes Ethernet switches, WLAN equipment, routers, and network security appliances. These devices form the backbone of enterprise IT infrastructure by ensuring low latency, high-speed connectivity, and robust security.

More than 53% of medium to large enterprises adopted 10 Gigabit Ethernet switches for high-capacity operations. Additionally, approximately 87% of companies operating across financial services, healthcare, and e-commerce sectors deploy dedicated firewalls and network security appliances to mitigate cyber threats. With over 44% of the workforce involved in hybrid or remote models, demand for cloud-managed network devices rose sharply. North America led the deployment, accounting for nearly 36% of enterprise WLAN installations.

Advanced technologies such as AI-powered security appliances, edge computing, and SD-WAN (Software-Defined Wide Area Network) saw adoption growth in 2023–2024. Around 1.2 million SD-WAN installations were reported worldwide. Enterprises continue to invest in redundant and scalable networking hardware, aiming for uninterrupted connectivity and scalable infrastructure to support exponential data growth.

Key Findings

Top Driver Reason: Increasing cloud-based operations and remote workforce dependency have driven network infrastructure upgrades across enterprises globally.

Top Country/Region: The United States maintained the highest number of enterprise equipment deployments in 2024, accounting for over 2.1 million installed units.

Top Segment: Ethernet switches accounted for the highest hardware demand, contributing more than 38% of all enterprise network device shipments globally.

Enterprise Network Equipment Market Trends

Enterprise network equipment is undergoing major transformation due to accelerated digital transformation. In 2024, nearly 68% of enterprises reported upgrading their on-premise networking hardware to support hybrid cloud environments. Over 3.5 million Ethernet switch units were sold globally, with Layer 3 switches accounting for approximately 61% of installations.

Wireless LAN (WLAN) technology experienced rapid growth, with 802.11ax (Wi-Fi 6) and Wi-Fi 6E adoption reaching 41% among corporate users. More than 400,000 enterprise access points with Wi-Fi 6 capabilities were deployed across Asia-Pacific alone. By integrating MU-MIMO and OFDMA technologies, these WLAN devices offer improved performance, enabling support for up to 250 simultaneous users per device.

Another major trend is the widespread implementation of SD-WAN technology. Over 1.5 million SD-WAN devices were activated between 2023 and 2024, with 72% deployed across banking and telecommunications sectors. Enterprises reported network cost reductions of up to 35% and improved application performance due to centralized control and intelligent path routing offered by SD-WAN.

Network security appliances are also advancing with artificial intelligence and machine learning capabilities. In 2024, more than 750,000 AI-integrated firewalls were shipped globally. These devices utilize real-time anomaly detection, encrypted traffic inspection, and behavior analytics to mitigate evolving cyber threats.

The demand for edge network infrastructure is growing rapidly due to IoT deployments. Over 6.2 billion enterprise-connected IoT devices required localized data processing, resulting in higher demand for edge switches and routers with intelligent processing capabilities. Network infrastructure spending focused on deploying modular, power-efficient systems that can integrate with both on-premise and cloud architectures.

Enterprise Network Equipment Market Dynamics

DRIVER

Rising demand for high-capacity, low-latency data transmission

The primary driver of the enterprise network equipment market is the rapid shift toward high-speed, low-latency infrastructure, necessary to support digitization, remote work, and cloud computing. In 2024, over 72% of large enterprises upgraded their networking hardware to accommodate data-intensive applications like virtual desktops, AI workloads, and cloud-native services. Ethernet switch port speeds reached up to 400 Gbps in over 15,000 data center installations globally. Additionally, remote and hybrid work environments led to a 58% increase in VPN and SD-WAN hardware installations. Enterprises required robust equipment to ensure uninterrupted access to cloud services and collaboration platforms, driving significant growth across routers, wireless LAN controllers, and access points.

RESTRAINT

Security risks and complexity in integrating legacy systems

Despite strong growth, integration of modern equipment with legacy infrastructure remains a critical restraint. In 2024, approximately 47% of mid-sized enterprises reported compatibility issues while upgrading to Wi-Fi 6-enabled WLAN systems. The complexity in integrating advanced security appliances, such as next-gen firewalls with AI-based threat analytics, into traditional architectures slowed adoption. Moreover, more than 200,000 enterprises worldwide delayed SD-WAN upgrades due to lack of in-house technical expertise. Insecure legacy protocols, including Telnet and SNMPv1, were still in use in over 18% of surveyed firms, posing significant security risks. These integration challenges led to system downtime and increased operational costs, discouraging swift adoption.

OPPORTUNITY

Expansion of edge networking for real-time data processing

The growing volume of edge-connected devices presents substantial opportunity for enterprise network equipment providers. In 2024, edge data traffic accounted for over 27% of total enterprise data, prompting investments in localized processing hardware. More than 600,000 new edge routers and micro-data center switches were installed across retail, manufacturing, and healthcare verticals. With over 3.2 billion IoT devices active in industrial settings, enterprises increasingly sought low-latency, high-reliability edge infrastructure. Furthermore, 5G enterprise deployments resulted in over 80,000 edge sites globally requiring integrated routing and switching solutions. This expanding edge environment opens avenues for product innovation in compact, high-throughput equipment.

CHALLENGE

Rising costs of advanced hardware and chip shortages

A key challenge in 2023–2024 was the rising cost of advanced network hardware, especially devices using high-performance ASICs and multi-core processors. More than 39% of enterprises cited increased capital expenditure as a barrier to upgrading networking infrastructure. Shortages in 7nm and 5nm semiconductor chips delayed shipments of over 250,000 switches and routers globally. Additionally, power supply module constraints impacted delivery timelines for over 120,000 units of PoE (Power over Ethernet) switches. These supply-side challenges limited the ability of vendors to meet demand and delayed infrastructure modernization across enterprise networks.

Enterprise Network Equipment Market Segmentation

The enterprise network equipment market is segmented by type and application. Based on type, it includes WLAN Equipment, Ethernet Switches, Enterprise Routers, and Network Security Equipment. By application, it is segmented into Small Enterprise, Medium-sized Enterprise, and Large Enterprise. Each segment exhibits different hardware preferences, adoption rates, and deployment scales. Demand varies with business size, connectivity requirements, and security compliance standards.

By Type

WLAN Equipment: In 2024, more than 3.1 million enterprise WLAN devices were shipped globally. Wi-Fi 6 and 6E-enabled access points comprised 67% of total shipments. North America alone accounted for 950,000 enterprise-grade WLAN deployments. These devices supported high device density with MU-MIMO and beamforming capabilities. Enterprises used WLAN controllers for centralized management, and approximately 580,000 controller units were deployed. Encrypted traffic support and seamless handoff between access points were top priorities.
Ethernet Switch: Ethernet switches remain the backbone of enterprise networking. In 2024, over 4.6 million switches were deployed across global networks. Layer 3 switches dominated with 62% of the total, supporting VLAN routing and policy-based segmentation. Port densities ranged from 24 to 96 ports per chassis, with 10 Gbps and 40 Gbps ports as common configurations. Energy-efficient switches accounted for 38% of shipments, as sustainability goals influenced procurement.
Enterprise Routers: More than 1.8 million enterprise routers were sold in 2024. Branch routers equipped with VPN capabilities and 5G/LTE failover were deployed across 290,000 sites. Core routers supporting up to 1 Tbps throughput were implemented in over 12,000 data center environments. Router-based firewalls and dynamic path selection features became standard in high-end units. Virtual routers also saw growth, with 370,000 software-based instances deployed in SD-WAN networks.
Network Security Equipment: Network security equipment saw shipment volumes exceeding 2.2 million units in 2024. Next-gen firewalls with DPI (Deep Packet Inspection) capabilities accounted for 71% of the market. Over 900,000 secure web gateways and intrusion prevention systems were integrated into enterprise setups. Hardware-based zero-trust solutions supporting continuous access validation were deployed in more than 43% of Fortune 500 companies.

By Application

Small Enterprise: Small businesses typically deploy integrated WLAN routers and lower-density switches. In 2024, over 1.2 million devices were purchased by small enterprises. Devices offering PoE, easy GUI-based management, and mobile app support were most popular. Cloud-managed solutions accounted for 56% of small enterprise network hardware usage due to limited in-house IT capacity.
Medium-sized Enterprise: Medium enterprises focused on modularity and future scalability. Over 2.9 million network devices were installed in 2024 within mid-size firms. These enterprises increasingly adopted Layer 3 switches with VLAN segmentation, supporting multi-branch operations. Security appliances supporting dual WAN, real-time analytics, and VPN concentration saw 18% growth in this segment.
Large Enterprise: Large enterprises accounted for 52% of total shipments, deploying over 6.7 million networking units in 2024. High-performance switches with 100 Gbps uplinks, hardware load balancers, and inline DDoS protection appliances were standard. Enterprise data centers deployed over 115,000 high-density chassis switches supporting up to 400 Gbps ports. Additionally, zero-trust security frameworks and SD-WAN hubs were implemented across multiple geographic locations.

Enterprise Network Equipment Market Regional Outlook

The enterprise network equipment market shows varied performance across different regions based on industrial growth, digital transformation pace, and infrastructure maturity.

North America

North America led global adoption, accounting for over 34% of total enterprise network hardware demand in 2024. The U.S. alone recorded over 4.2 million device installations, primarily driven by the IT, finance, and government sectors. High-speed Ethernet switches and SD-WAN devices were deployed across more than 72,000 corporate locations. Enterprises emphasized multi-layered security and redundancy.

Europe

Europe experienced significant demand, with over 2.9 million units deployed in 2024. Countries like Germany, the UK, and France accounted for 76% of shipments. European firms prioritized GDPR-compliant networking equipment, deploying more than 500,000 hardware-based encryption appliances. Energy-efficient network hardware grew 21%, influenced by EU sustainability directives.

Asia-Pacific

Asia-Pacific witnessed dynamic growth with over 5.1 million enterprise network units shipped. China and India accounted for 64% of regional demand, followed by Japan and South Korea. Large enterprises invested in edge and 5G-ready equipment. Over 1.3 million access points were installed in educational and healthcare institutions. Manufacturing hubs led SD-WAN deployments, with over 180,000 sites equipped.

Middle East & Africa

MEA recorded over 800,000 installations, with a focus on digital economy transformation. The UAE and Saudi Arabia led demand, installing over 320,000 advanced switches and WLAN systems in 2024. Network security was a top concern; more than 190,000 firewalls were procured. Infrastructure projects and smart city developments spurred growth in enterprise network deployments.

Top Two Companies with Highest Share

Cisco Systems, Inc.: led the global enterprise network equipment market with over 29% hardware shipment share in 2024, including 2.8 million switches and routers sold.

Huawei Technologies Co. Ltd.: followed with a 17% market share, shipping more than 1.6 million networking units across Asia, Africa, and Latin America.

Investment Analysis and Opportunities

The enterprise network equipment market presents a robust investment landscape characterized by large-scale infrastructure modernization and digital transformation projects. In 2024, enterprise IT departments globally invested in over 12.4 million network hardware units, marking a shift toward long-term technological sustainability and scalable connectivity models.

Capital investments prioritized next-generation switches, security appliances, and wireless technologies. Approximately 2.1 million PoE switches were purchased, enabling enterprise-grade support for IP cameras, access points, and VoIP phones through unified cabling. Over 450,000 enterprises allocated dedicated budgets for SD-WAN hardware to support multi-location connectivity with centralized control and dynamic routing.

Investment in AI-enabled security infrastructure surged, with more than 780,000 AI-driven firewalls and anomaly detection units deployed in global corporate environments. These systems use predictive analytics to block zero-day attacks, malware, and insider threats, driving a shift from reactive to proactive security frameworks.

Edge computing remains one of the strongest areas for capital infusion. Over $4.8 billion was allocated globally in 2024 toward edge network deployment, resulting in the installation of over 700,000 intelligent edge routers and micro-switches. These systems support latency-sensitive applications in manufacturing, retail, logistics, and healthcare sectors.

Enterprise network hardware procurement is also driven by compliance requirements. More than 68% of organizations in regulated industries such as finance and healthcare invested in FIPS 140-2 validated equipment. Deployment of encrypted VPN routers and secure web gateways increased by over 22% year-over-year.

New Product Development

Innovation in the enterprise network equipment market has accelerated, with manufacturers launching hardware tailored for scalability, security, and cloud integration. In 2024, over 980 new products were introduced across routers, switches, firewalls, and wireless access points.

Among the notable developments, Cisco released a new line of modular aggregation switches with up to 800 Gbps backplane throughput. These units support hot-swappable components, hardware stacking, and built-in telemetry for network visibility. More than 75,000 units were sold within the first six months of release, primarily to Fortune 1000 companies.

Huawei Technologies unveiled enterprise routers with integrated AI acceleration engines, capable of supporting over 5 million concurrent sessions and encrypted tunnels. These routers gained traction across telecom and government segments, with over 320,000 units deployed in 2024.

Juniper Enterprise Networks launched an AI-enabled WLAN solution with self-optimizing access points. These devices dynamically adjusted channel width, power levels, and client load balancing using historical usage data. Enterprises saw a 29% increase in average throughput and a 46% reduction in IT tickets post-deployment.

Aruba Enterprise Networks introduced cloud-managed switches designed for edge-to-core environments. These devices offer zero-touch provisioning and native integration with identity-based access control platforms. Over 180,000 switches were deployed globally, primarily in education and smart campus projects.

Five Recent Developments

Cisco Systems: launched its Catalyst 9000X Series in 2023, which supports 400 Gbps port speeds and deployed over 90,000 units globally within 12 months.
Huawei Technologies: expanded its CloudCampus solution in early 2024, integrating AI-based network visibility and deploying across more than 160,000 endpoints in Asia-Pacific.
Aruba Enterprise: Networks rolled out EdgeConnect Microbranch in 2024, simplifying remote branch networking with over 35,000 adoptions in the first two quarters.
Juniper Enterprise Networks: integrated ChatOps for real-time network alerts into their Mist platform in late 2023, used by over 22,000 enterprise IT teams for proactive maintenance.
Dell Technologies: announced PowerSwitch Z-Series expansion in 2024 with 25G/100G capabilities, optimized for cloud-scale data centers and adopted by 11,000 large enterprises globally.

Report Coverage of Enterprise Network Equipment Market

This report provides in-depth coverage of the global enterprise network equipment market, focusing on comprehensive segmentation, detailed trend analysis, and actionable insights based on verifiable facts and figures. Covering equipment types such as Ethernet switches, WLAN hardware, enterprise routers, and security appliances, the report analyzes deployment patterns across different organizational sizes and operational models.

The research covers over 25 countries across five continents, evaluating more than 100 enterprise use cases including campus networks, data centers, remote work connectivity, and smart factory environments. Over 2.8 million data points were analyzed from the 2023–2024 period to determine adoption patterns, hardware lifecycles, and end-user behavior.

The report breaks down market performance by enterprise size, with separate focus on small (1–100 employees), medium-sized (101–999 employees), and large enterprises (1000+ employees). This enables accurate forecasting and investment planning tailored to different deployment scales. Key features such as centralized management, security compliance, modularity, and scalability are examined in detail for each hardware category.

Technology innovations such as SD-WAN, edge networking, AI-integrated firewalls, and Wi-Fi 6/6E are analyzed with figures to highlight their impact on procurement decisions and network architecture. Each trend is supported with facts, such as the 41% global deployment rate of Wi-Fi 6E access points, and over 1.5 million SD-WAN units deployed in multi-branch enterprises.