London-based technology markets analyst SpendEdge has been monitoring the global enterprise router market and reports that the market is poised to experience spending growth of more than USD $1 billion between 2019-2024 at a CAGR of over 4% during the forecast period. The analyst notes that cloud computing is gaining prominence in operations across a majority of enterprises, resulting in the generation of massive volumes of data and creating new requirements for high-speed internet. Such infrastructural requirements are propelling the demand for enterprise routers and are driving substantial investments into this market.
The recent increase in demand for network virtualization solutions is contributing to demand growth in the enterprise routers market, states SpendEdge. Nonetheless, despite predictions of spend growth, factors like lack of infrastructure, especially in servers and data centers, in many developing nations are shown taking a toll on spending in the market. Meanwhile, in North America, a balanced ratio of buyers and suppliers is favoring demand growth in the enterprise router market, says the researcher.
Per the new report's executive summary, "Last year, the market share in this region touched a figure of almost 45%. The high adoption rate of software-defined and cloud-based network solutions will continue contributing to spend growth in the enterprise router market in this region. Meanwhile, in APAC, technological developments and adoption of IT infrastructure by enterprises are favoring market spend growth that posted an average annualized growth of about 8% last year. It is expected that enterprise routers suppliers who can deliver at competitive rates are likely to experience healthy growth in APAC, where many corporates are seeking to deploy economical enterprise router solutions."
Commenting on the market report, a representative from SpendEdge stated, "The application of an enterprise router is a complex task and entails the usage of high end-hardware components. This is increasing the operating expenditure, which will have an inflationary impact on the overall price structure in the enterprise routers market. The prices of raw materials such as steel, aluminum, and copper are expected to surge which will result in a hike in the manufacturing expenditure of enterprise route suppliers," added the analyst. "This will impact the overall market price."
The new report seeks to provide insights into the supply market that will have potential impacts on readers' procurement strategies. "A section of the global supply pool is not only catering to the requirement for new routers but are also upgrading the old routers of their existing clients, irrespective of the router types," observes SpendEdge.
The analyst adds, "Such suppliers are also known to offer routers that are customized to the buyer’s organization requirements. Enterprise routers suppliers are adopting automation and robotics in their production process. This is offering an excellent cost-saving opportunity for suppliers, as the adoption of automation will aid in optimal plant utilization, reduce employee cost, and improve product quality. In the long run, this will translate into more profits and long-term associations with buyers."
Top enterprise router suppliers looked at in the report include:
Cisco Systems Inc.
Huawei Investment & Holding Co. Ltd.
Hewlett Packard Enterprise Co.
Juniper Networks Inc.
Download a free sample of the 133-page research report with TOC and LOE by SpendEdge, entitled, "The Global Enterprise Router Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”