Ethernet Switch and Routers Market Size & Forecast [2033]

Ethernet Switch and Routers Market Overview

The Ethernet Switch and Routers Market size was valued at USD 73938.6 million in 2024 and is expected to reach USD 99028.94 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The global Ethernet switch and routers market is experiencing significant infrastructure transformation driven by data traffic expansion, cloud computing growth, and the widespread adoption of 5G. In 2024, over 750 million Ethernet switch ports were shipped globally, with 100GbE and 400GbE ports witnessing the fastest port deployment rates in hyperscale data centers. The average switch port speed has increased from 1 Gbps in 2015 to 25 Gbps in 2024, reflecting higher bandwidth demands. Additionally, the installed base of routers worldwide has surpassed 150 million units, including more than 65 million enterprise-grade routers. Data center applications dominate the market, accounting for over 65% of Ethernet switch deployments due to the increasing demand for low-latency and high-throughput connectivity. Meanwhile, edge computing infrastructure has accelerated the deployment of compact, high-density switches, particularly in regions like Asia-Pacific and North America. The uptake of software-defined networking (SDN) and network function virtualization (NFV) is pushing vendors to enhance switch and router programmability.

Key Findings

Driver: Rising data traffic from cloud computing, IoT, and 5G networks is accelerating the demand for high-bandwidth Ethernet switching and routing equipment.

Top Country/Region: China leads global Ethernet switch and router demand, with over 35% of total switch port shipments in 2023, driven by hyperscale data center expansions and 5G rollouts.

Top Segment: Data centers dominate the market, accounting for more than 65% of total Ethernet switch deployment in 2024 due to surging cloud workloads and virtualization trends.

Ethernet Switch and Routers Market Trends

The Ethernet switch and routers market is evolving rapidly due to the increasing bandwidth needs of modern networks, with trends showing a clear migration toward higher-speed ports and intelligent traffic management. In 2023, over 300 million 1GbE ports were shipped, but the demand is shifting toward 25GbE, 100GbE, and 400GbE ports. Hyperscale data centers now account for more than 70% of 100GbE port consumption, with tech giants like Meta, Google, and Amazon deploying spine-leaf topologies to enhance scalability and reduce latency. A significant trend in the Ethernet switch and routers market is the adoption of disaggregated network infrastructure. Vendors are increasingly offering bare-metal switches coupled with open-source NOS (Network Operating Systems). In 2024, disaggregated switch adoption surpassed 20 million units, reflecting growing preference for vendor-neutral, programmable solutions. AI-driven network optimization is another notable trend. Ethernet switches equipped with embedded AI chips are enhancing QoS (Quality of Service), enabling real-time traffic prioritization and energy-efficient routing. Over 35% of newly deployed enterprise-grade switches in 2024 included AI-assisted management features.

The rapid deployment of Wi-Fi 6, Wi-Fi 6E, and Wi-Fi 7 routers is also influencing the consumer and SOHO (Small Office/Home Office) segments. In 2023, more than 72 million Wi-Fi 6E routers were sold globally. By mid-2024, over 12 million Wi-Fi 7 units had already entered the market, highlighting the aggressive pace of wireless innovation. Another rising trend in the Ethernet switch and routers market is the emphasis on Power over Ethernet (PoE) solutions. In 2023, over 60 million PoE-enabled ports were shipped, supporting smart devices like surveillance systems, access points, and IP phones. As enterprises adopt more IoT devices, PoE-based switching infrastructure is becoming foundational. The transition to IPv6 is also reshaping routing practices, with over 45% of global internet traffic now routed via IPv6 as of late 2024. This has pushed demand for advanced edge and core routers capable of seamless IPv4/IPv6 packet handling. Green networking is another emerging trend. Vendors are pushing for low-power idle (LPI) modes and advanced energy monitoring. In 2024, over 25% of switches and routers shipped met strict IEEE 802.3az energy-efficient standards.

Ethernet Switch and Routers Market Dynamics

DRIVER

Rising demand for high-speed network infrastructure across data centers and enterprise campuses.

Global IP traffic is expected to reach 500 exabytes per month in 2025, up from 438 exabytes per month in 2024, driving exponential data switching and routing requirements. The proliferation of AI workloads, edge computing, and cloud-native applications is compelling enterprises to upgrade from traditional 1GbE to 10GbE, 25GbE, and 100GbE Ethernet switches. Over 80% of enterprise networks have now adopted at least partial virtualization, requiring programmable routers and SDN-compatible switches to ensure flexible network provisioning.

RESTRAINT

Demand for refurbished and low-cost networking equipment in price-sensitive markets.

While innovation drives premium demand, budget-constrained regions in Latin America, Africa, and Southeast Asia are showing a preference for refurbished Ethernet switches and routers, accounting for over 15% of total units sold in 2024. Legacy systems, such as 100Mbps and 1GbE switches, continue to be deployed in these regions to reduce operational expenditure. This has slowed the adoption of next-generation equipment like 100GbE and 400GbE switches, especially in small and medium-sized enterprises.

OPPORTUNITY

Expansion of edge computing and private 5G networks in industrial and campus environments.

With over 30,000 edge data centers estimated globally by end-2024, Ethernet switches and routers are crucial to manage localized, high-volume data with minimal latency. The surge in private 5G deployments—over 1,200 enterprise 5G networks launched in 2023—has further increased demand for secure, low-latency routers integrated with MEC (Multi-access Edge Computing). Industrial applications like factory automation, predictive maintenance, and autonomous logistics are heavily reliant on deterministic Ethernet and ruggedized switching gear.

CHALLENGE

Rising costs and supply chain disruptions in semiconductor components.

The Ethernet switch and routers market continues to face component shortages due to global semiconductor supply chain bottlenecks. Lead times for network ASICs, transceivers, and FPGAs extended up to 52 weeks in early 2024, affecting timely production and delivery of high-performance switches and routers. Moreover, the rising cost of critical components has increased the ASP (Average Selling Price) of 100GbE and 400GbE switches by 8% year-over-year. These disruptions are forcing OEMs to adjust inventory strategies and sometimes delay launches of next-gen platforms, creating bottlenecks across hyperscale and enterprise network upgrades.

Ethernet Switch and Routers Market Segmentation

The Ethernet switch and routers market is segmented based on type and application, reflecting diverse deployment needs from data centers to residential households. In 2024, more than 750 million switch ports and over 180 million routers were shipped globally across these segments. Each segment experiences different growth rates depending on data intensity, network complexity, and end-user bandwidth requirements.

By Type

10GbE Switching Port: switches are heavily used in enterprises and midsize data centers. Over 150 million 10GbE ports were shipped in 2023, offering cost-effective scaling compared to higher-speed options. Their popularity stems from legacy compatibility and improved affordability. They are ideal for top-of-rack (ToR) switching in non-hyperscale deployments. In 2024, nearly 45% of new campus deployments still relied on 10GbE switches due to compatibility with existing CAT6 cabling.
100ME and 1GbE Switching Port: Despite being legacy technologies, 100ME and 1GbE switches remain relevant in SMB and residential setups. In 2023, over 300 million ports in this category were sold globally, primarily due to their low cost. Wi-Fi 5 and older routers often include 1GbE uplinks, sustaining demand. These switches still dominate in emerging markets and educational institutions with low bandwidth needs.
40GbE Switching Port: ports serve as aggregation layers in traditional 3-tier architectures. Around 25 million 40GbE ports were shipped in 2023, although their market share is declining as 100GbE becomes more affordable. They remain relevant for specific enterprise backhaul use cases and in mid-tier data centers. Many spine switches still support 40GbE as breakout options.
100GbE Switching Port: The adoption of 100GbE has grown rapidly, with over 110 million 100GbE ports deployed by 2024. These switches are integral to hyperscale data centers and AI-intensive environments. Around 70% of cloud service providers use 100GbE as the primary uplink speed. Switches with 100GbE ports support high-density, low-latency applications, especially for east-west traffic in data centers.

By Application

Data Centers: remain the largest application segment, consuming more than 65% of Ethernet switch ports in 2024. High-density switching with 25/100/400GbE configurations is dominant. Over 85% of hyperscale facilities in North America and Asia use spine-leaf switch topologies with layer-3 routing capabilities for scale-out deployments.
Campuses: networks are increasingly modernized, with nearly 30% of university and corporate campuses globally upgrading to multi-gig switches (2.5/5/10GbE). In 2023, over 45 million ports were deployed in educational and commercial campuses, emphasizing Wi-Fi 6 integration and network segmentation.
Enterprises: networks are evolving towards hybrid IT environments. In 2024, over 60 million switches and routers were shipped to enterprise customers for internal IT, VPN, SD-WAN, and firewall-integrated routing. Multi-gig PoE switches are also gaining momentum in smart building applications.
Households: Residential networking saw shipments of over 180 million routers in 2023, driven by increased broadband penetration. Wi-Fi 6/6E routers accounted for more than 40% of this demand. Smart homes increasingly require integrated routers with mesh networking and up to 2.5GbE WAN ports.
Other: applications include telecom backhaul, industrial automation, and retail networks. In 2023, over 8 million rugged Ethernet switches were deployed in smart transportation and oil & gas. Telecom providers used over 1 million carrier-grade routers for 5G and fiber rollout.

Ethernet Switch and Routers Market Regional Outlook

The Ethernet switch and routers market exhibits varying growth patterns across global regions, influenced by data infrastructure maturity, government policies, telecom expansion, and digital transformation strategies. In 2024, over 70% of high-speed Ethernet switch demand originated from North America and Asia-Pacific, while emerging deployments accelerated in the Middle East and Africa. Regional investment in 5G, IoT, and cloud infrastructure is fueling massive router and switch deployments across both developed and developing economies.

North America

continues to lead in advanced Ethernet switch and routers market penetration, driven by large-scale data center expansion, edge computing, and 5G infrastructure. In 2023, over 250 million switch ports and 60 million routers were shipped across the U.S. and Canada. More than 80% of North American data centers adopted 25GbE or higher switches. The rollout of Wi-Fi 6E and Wi-Fi 7 in the U.S. boosted consumer-grade routers, with over 28 million Wi-Fi 6E routers sold in 2023 alone.

Europe

shows steady growth in the Ethernet switch and routers market due to its commitment to digitalization and sustainability in networking. In 2023, over 160 million Ethernet switch ports and 35 million routers were deployed across the continent. Germany, the UK, and France led the switch upgrade race, with 100GbE ports making up 30% of all new data center switch deployments. The EU’s focus on IPv6 adoption and energy-efficient networking has also encouraged sales of IEEE 802.3az-compliant switches.

Asia-Pacific

is the fastest-growing region in the Ethernet switch and routers market, with China, Japan, India, and South Korea leading in switch port consumption. In 2024, the region accounted for over 300 million switch ports, representing 40% of global shipments. China alone deployed over 120 million ports, backed by aggressive 5G backhaul and hyperscale data center expansion. India’s digital infrastructure push led to shipment of over 20 million enterprise routers, especially in Tier II and III cities.

Middle East & Africa

region is witnessing accelerated adoption of Ethernet switch and routers driven by smart city initiatives and fiber broadband penetration. In 2023, over 50 million switch ports and 12 million routers were sold across the region. The UAE and Saudi Arabia are key markets, with ongoing investments in campus-wide Wi-Fi 6 deployments and 100GbE data center switches. African nations like Nigeria and Kenya are embracing low-cost 1GbE routers, with over 5 million units shipped to support mobile offloading and community broadband.

List of Top Ethernet Switch and Routers Companies

Arista Networks
Broadcom
Cisco
Ericsson
Huawei Technologies
Juniper Networks
NETGEAR
ZTE
HP
TP-Link
Alcatel-Lucent
D-Link

Cisco: remains the global leader in the Ethernet switch and routers market, with a dominant share of over 37% of global switch port shipments in 2023. The company shipped more than 270 million switch ports and 55 million routers, driven by its Catalyst, Nexus, and Meraki series. Cisco also leads in SD-WAN adoption, commanding over 50% market penetration in enterprise-grade routing.

Huawei Technologies: holds the second-largest share, with over 22% of global switch and router shipments in 2023. The company delivered more than 150 million switch ports and 40 million routers, primarily within Asia-Pacific and emerging markets. Huawei’s CloudEngine and NetEngine product lines are widely deployed in carrier and campus networks, with a significant presence in 5G transport and optical-electrical hybrid switches.

Investment Analysis and Opportunities

The Ethernet switch and routers market presents robust investment opportunities across hyperscale data centers, telecom infrastructure, enterprise digitization, and smart home networking. In 2024, over $40 billion equivalent in network infrastructure investments globally were directed toward switching and routing upgrades—focusing primarily on bandwidth expansion, energy efficiency, and intelligent management. One of the most promising investment areas is hyperscale data centers, where over 600 facilities globally are scaling from 25GbE/40GbE to 100GbE and 400GbE switch infrastructures. Companies like Arista and Cisco are reporting deployment orders of over 5 million high-speed ports per quarter. This migration opens opportunities for next-generation ASICs, fiber optics, and scalable network topologies. Modular switch chassis and programmable routing engines are being rapidly adopted for increased agility.

Another critical investment trend is the expansion of 5G and edge infrastructure. Telecom operators in North America, China, South Korea, and India are investing in cell site routers and aggregation switches capable of handling 25Gbps–100Gbps uplinks. More than 400 mobile operators deployed new IP/MPLS routing infrastructure in 2023 alone. Vendors offering compact, carrier-grade routers with SDN/NFV compatibility are receiving large-scale capital inflows from both public and private investment sources. In enterprise IT, the surge in hybrid workplaces and digital transformation initiatives is triggering demand for secure, multi-gig PoE switches and SD-WAN routers. Over 70% of Fortune 1000 companies upgraded part of their LAN or branch network infrastructure between 2023 and 2024. Investments in cloud-managed networking (e.g., intent-based networking and automation tools) are expected to continue as businesses scale up remote access and IoT deployments.

New Product Development

Product innovation remains a core strategy in the Ethernet switch and routers market, with major manufacturers focusing on high-speed port integration, AI-driven management, energy efficiency, and SDN-ready architectures. In 2024, over 50 new high-speed switch and router platforms were launched globally, aimed at enterprise, data center, telecom, and consumer segments. One of the most significant developments is the emergence of 800GbE switches, driven by AI/ML workloads and hyperscale data center demands. Arista Networks launched its 7800R3 and 7130 Series, capable of 800Gbps per port throughput, designed for high-frequency trading and real-time analytics. Similarly, Cisco introduced Nexus 9800 switches supporting line-rate 400GbE and 800GbE, with integrated analytics and real-time telemetry capabilities. These platforms are optimized for layer-3 spine-leaf architectures, now adopted by over 70% of hyperscale facilities.

In the routing space, Juniper Networks unveiled its ACX7000 router family, purpose-built for 5G transport and edge cloud environments, featuring multi-service capabilities over a single platform. These routers support 100Gbps to 400Gbps uplinks with integrated timing, VPNs, and telemetry, aligning with operators deploying over 1,000 new 5G base station backhaul connections per month. On the enterprise side, there’s a growing focus on multi-gigabit switches with integrated PoE++ and AI-based QoS features. HP (Aruba) released its CX 6200 and CX 8360 series targeting smart buildings and campus networks. These platforms offer up to 60W per port PoE and AI-based automation tools to reduce operational overhead. NETGEAR and TP-Link have also developed new Wi-Fi 6/6E and Wi-Fi 7-ready routers, shipping more than 8 million mesh-capable units in 2023–2024.

Five Recent Developments

Cisco Launches Nexus 9800 Series with 800GbE Support (2024): introduced the Nexus 9800 switch platform in early 2024, offering line-rate 800GbE and 400GbE ports targeted at AI-scale data centers. The platform integrates real-time telemetry, zero-trust security features, and supports 100Tbps total switching capacity per chassis. It is now being deployed in over 30 hyperscale facilities worldwide.
Huawei Unveils NetEngine 8000 F8 Core Router for 5G Backhaul (2023): launched the NetEngine 8000 F8, a carrier-class core router with 19.2Tbps switching capacity and advanced IPv6+ routing. This platform is already in use across six national 5G backbone networks in Asia and Africa, enhancing low-latency service delivery for over 200 million users.
Arista Launches 7130 Series Switches for High-Frequency Trading (2024): Networks expanded its ultra-low latency portfolio with the 7130 Series Layer-1 switches, designed for financial services networks requiring sub-microsecond switching. These switches offer 96 1/10GbE ports with latency as low as 5 nanoseconds, and were deployed in over 12 major stock exchanges by Q1 2024.
Juniper Networks Expands ACX7000 Series for Metro Edge (2023): introduced new models in its ACX7000 router series in late 2023, supporting 400GbE interfaces with integrated timing for 5G transport. The platform is now active in over 400 telecom networks for metro aggregation, supporting both SRv6 and MPLS protocols.
TP-Link Ships Over 10 Million Wi-Fi 6E and Wi-Fi 7 Routers (2023–2024): became the first company to ship over 10 million units of combined Wi-Fi 6E and early Wi-Fi 7 routers globally. These devices support 2.5GbE WAN ports, tri-band connectivity, and intelligent mesh networking. By mid-2024, Wi-Fi 7 routers had been launched in more than 25 countries, with sales accelerating in the U.S., India, and Germany.

Report Coverage of Ethernet Switch and Routers Market

The report on the Ethernet switch and routers market offers a comprehensive and in-depth analysis of the global industry, covering technology adoption, regional trends, competitive landscape, key segments, and product innovation. The report covers data for 2023 and 2024, with a focus on Ethernet switching port shipments, router unit sales, application breakdowns, and emerging network infrastructure deployments across all major continents. The scope of the report includes detailed segmentation of the Ethernet switch and routers market by type, such as 10GbE, 100ME and 1GbE, 40GbE, and 100GbE switching ports, with individual analysis based on shipment volumes, port utilization trends, and deployment environments. More than 750 million switch ports were shipped globally in 2024, with 100GbE representing one of the fastest growing segments, especially in hyperscale and AI-focused data centers.

The report also segments the market by application, including data centers, campuses, enterprises, households, and other specialized environments. In 2023–2024, over 65% of switches were deployed in data centers, while enterprise and campus networks accounted for a significant portion of multi-gigabit PoE switch shipments. The report includes usage metrics, deployment scales, and infrastructure modernization statistics across all segments. In terms of geographic coverage, the report presents market dynamics in North America, Europe, Asia-Pacific, and the Middle East & Africa. It provides shipment data, technology adoption rates, and infrastructure deployment trends in each region. For instance, Asia-Pacific accounted for over 300 million switch port shipments in 2024, making it the largest regional market. North America leads in Wi-Fi 6E and Wi-Fi 7 router penetration, with over 28 million units sold in 2023 alone. The competitive landscape section provides a detailed analysis of leading players such as Cisco, Huawei, Arista Networks, Juniper, and TP-Link, examining their market strategies, product launches, and shipment statistics.