Follow us on LinkedIn - As a core component of computer networks, routers enable efficient data traffic management and are used at every level in the Internet. For example, routers in access networks enable small businesses and homes to connect to an Internet service provider whereas routers in enterprise networks connect thousands of computers within an enterprise. In a backbone network, routers interconnect enterprise networks and ISPs with long distance trunks. Increasing network adoption, rapid growth of the Internet, and growing data traffic in key verticals such as information technology (IT), IT enabled services (ITES), and banking, financial services, and insurance (BFSI) remain the engines of growth for the worldwide router market. The ever-changing market dynamics and business needs are compelling enterprises to seek new router platforms to deliver multi-service applications along with voice, security, data services and optimization simultaneously.
World market for routers declined in the years 2008 & 2009 primarily due to the global economic downturn and associated market uncertainty, which resulted in reduced spending in global service provider, enterprise, and commercial markets. Fall in the business confidence index, bleeding corporate balance sheets, enterprise skepticism over infrastructure investments, tight liquidity/financial constraints, lack of credit availability, high borrowing rates and capital shortages to fund new investments in telecommunications, IT infrastructure, plants and equipment, have all sent ripples of unrest in the market between the period 2008 and 2009. Faced with uncertain and bleak future, the telecommunication sector, one of the principal end-use markets for router systems presented a tired outlook during 2007 through 2009 period. The effect of the economic slowdown was evident on the global telecommunications industry. This seriously hampered the demand for router systems with core and edge routers, mid-range, low-end, and high-end router product categories reporting declining sales. While steep decline in growth rates was witnessed in developed markets such as the North America and Europe, emerging Asian economies such as China and India posted relatively better performance.
Although flayed by the recent recession, the global router market is forecast to recover poise, driven by resurgence in networking, telecommunication functions and continuous data and network services, which will push the markets growth fundamentals back into fore. In fiscal 2010, the router industry staged a solid V-shaped recovery across geographies, product and customer markets exemplified by gradually recovering global economy and increased demand for mobile devices, video transmission, and new online services. Shipments and revenues of IP core and edge router in North America picked up significantly in the year 2010, as telecom and network operators reinstated capital expenditures to handle more traffic, especially video and video over broadband, as well as data and photos over mobile networks. Given the undeniable importance of networking systems in growing economies, developing markets are forecast to emerge to drive growth in the post recession period. Continuous investments in industry and telecommunications infrastructure by governments in these regions will additionally drive growth.
Rapid increase IP traffic, driven by increased usage of video and voice over IP, rising popularity of bandwidth-intensive devices, network-based businesses and applications, NAS devices, cloud computing, and virtualization will continue to drive market prospects for routers in the short to medium term period, as increase in IP traffic will compel network planners to install core, edge, and aggregation routers in complex hierarchies. Improvements in Internet speeds, and network bandwidth capacity coupled with rising popularity of 3D and HDTV, will propel market for routers in long-term. The need to upgrade legacy networks to address the bandwidth and scalability issues faced by network operators and service providers due to growing consumption of bandwidth-hungry video services across various networks and devices will also drive future market prospects for routers in the years to come. In order to transform legacy networks into more secure, scalable and open broadband frameworks, carrier networks are fast transitioning to packet-based Ethernet networks that enable lower cost, higher throughput, and uniform technology across access and metro networks. Going prominence of enterprise mobility and workforce virtualization in enterprises will also boost market prospects for routers over the next few years, as enterprise mobility pushes demand for mobile routers, which can even offer connectivity to multiple interfaces.
As stated by the new market research report on Routers, Asia-Pacific represents the fastest growing regional market for routers with revenue from the region waxing at a CAGR of about 16.4% over the analysis period. Growth in the market is especially driven by continuous investments made by governments in industry and telecommunications infrastructure in respective nations, and widespread availability of competitively priced products. Service Providers represents the fastest growing end-use segment for routers.
Major players in the marketplace include 2Wire Inc, ADTRAN Inc, Alcatel-Lucent, Allied Telesis Inc, ASUSTeK Computer Inc., Belkin International Inc, Brocade Communications Systems Inc, Buffalo Technology (USA), Inc., Ciena Corporation, Cisco Systems Inc, D-Link Systems Inc, Enterasys Networks Inc, Extreme Networks Inc, Hewlett-Packard Company, Huawei Technologies Co. Ltd, Intel Corp, Juniper Networks Inc, Motorola Inc, NETGEAR, Inc, Siemens AG, SMC Networks Inc, Telefonaktiebolaget LM Ericsson, TELLABS, INC., and ZyXel Communications Corporation.
The research report titled Routers: A Global Strategic Business Report announced by Global Industry Analysts Inc., provides a comprehensive review of current market trends, key growth drivers, recent industry activity, and profiles major companies worldwide. The report provides market estimates and projections for Routers across all major geographic markets including North America, Europe, Asia-Pacific, and Rest of World. The report analyses the market by key end-use segments Enterprises; Service Providers; and Research/Education & Others.
For more details about this comprehensive market research report, please visit http://www.strategyr.com/Routers_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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