Enterprise Network Equipment Market Size

Enterprise Network Equipment Market Analysis

The Enterprise Network Equipment Market size is estimated at USD 72.44 billion in 2024, and is expected to reach USD 124 billion by 2029, growing at a CAGR of 11.35% during the forecast period (2024-2029).

An enterprise network is an enterprise's communication backbone that helps connect computers and related devices across departments and workgroup networks, facilitating insight and data accessibility. It reduces communication protocols, promotes system and device interoperability, and improves internal and external enterprise data management.

• In an enterprise network, all systems should be able to communicate and provide and retrieve information. Therefore, physical systems and devices should be able to maintain and provide satisfactory performance, reliability, and security. Thus, components and technologies such as switches, routers, wireless networks, access points, network security and management, and WAN optimization assist in creating a secure, reliable, and scalable network at a lower cost.
• The significance of network infrastructure is rising along with digitalization. Consequently, there is a rising need for network infrastructure. Additionally, businesses are expanding their networks to accommodate the expanding bandwidth requirements of wireless networks. The market for enterprise network infrastructure is being driven by factors such as the expanding use of mobile devices, the rising need for bandwidth, and the transition to wireless technologies. Additionally, businesses are increasing their investments in network upgrades to increase speed, which would offer a reliable, energy-saving, and cost-effective solution.
• Moreover, enterprises are increasingly favoring advanced technologies and features such as 100G Ethernet switches and the adoption of 802.11 ac standards. For instance, the 802.11ac standard brings opportunities to deliver high-performance and end-device capacity over wireless networks. This enables the enterprise network to support the increasing range of wireless end devices such as smartphones, tablets, new generations of machine-to-machine (M2M) devices, and the Internet of Things (IoT).
• The market for corporate network devices is anticipated to grow in line with the trend of "bring your own device" (BYOD), which epitomizes the idea of any device used anywhere and is driving the demand for invasive wireless networks and mission-critical mobility applications.
• According to the Consumer Technology Association, worldwide spending on smart city developments is anticipated to reach USD 34.35 billion by 2020. This significantly drives the market. Further, the rise of China's middle class, a distinctly urban phenomenon, lifted around 500 million people out of poverty in less than 30 years. It is a testament to cities' power to elevate living standards. China has approximately 500 smart city pilot projects, the highest in the world, covering big and small cities. This potentially demands the rise of network equipment in the coming period.
• The network infrastructure market will be affected by the economic turbulence that has followed in the wake of Covid-19. The impact may be uneven across various sectors, geographies, and vertical industries across the market as the effects of the pandemic continues to play out.
• Telecom network vendors such as Huawei, Samsung, Ericsson, Nokia, and ZTE are facing supply chain issues in the wake of the COVID-19 pandemic. However, equipment installation services will remain in demand despite COVID-19-related challenges, such as rolling out personnel to sites to install new equipment amid the pandemic. Telecom operators still need to deploy small cells, predominantly in urban markets and public venues, that leverage high-band spectrum and additional macros in the field, primarily on existing sites.