Enterprise Routers Market Analysis
Spend growth in this market has the potential to touch a value of over USD 1 billion between 2019-2024, with spend momentum accelerating at a CAGR of more than 4%. The large-scale adoption of cloud computing by enterprises in their regular operations will create the requirement of volumes of data and faster internet. This requirement is expected to favor the spend growth in the enterprise routers market. The recent increase in the demand for network virtualization solutions, that can combine multiple physical networks into a single virtual network, thereby optimizing the network, will contribute to the demand growth in the enterprise routers market. However, lack of infrastructures, such as servers and data centers, in many developing nations will slow this market growth during the forecast period.
Top Spending Regions in the Enterprise routers Market
In terms of regional spend, North America will claim the largest market-share. The enterprise router market in APAC has the potential to emerge as the fastest growing market through 2024.
North America
The harmony between the ratio of buyers and suppliers will favor the highest demand growth in the enterprise routers market in North America. Last year, the market share touched a figure nearing 45%. The high adoption of rate of software-defined and cloud-based network solutions will further contribute to the spend growth in the enterprise routers market in this region.
APAC
Enterprises in APAC are undergoing technological developments and are adopting IT infrastructure. This will favor the spend growth of the enterprise routers market in this region that posted an average annualized growth of about 8% last year and will continue growing during the forecast period. This growth in APAC is attributed mostly due to rising Internet use in Japan, followed by India and China. It is expected that enterprise routers suppliers capable of providing lower prices are likely to experience healthy growth in APAC, where many corporates seek to deploy economical enterprise router solutions.
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What are the Key Price Trends in this Market?
- Application of an enterprise router is a complex task. Owing to this complexity, these devices use high-end hardware and costly components. This will have an inflationary impact on the overall price structure in the enterprise routers market.
- Forecasts of volatility in the prices of raw materials such as steel, aluminum, and copper will result in a significant surge in enterprise routers' suppliers' manufacturing expenditure. This will impact the overall market price.
- R&D cost is expected to rise as enterprise routers suppliers need to invest heavily in advanced technology and more sophisticated hardware.
Download the free sample of this report to know what the key enterprise routers procurement best practices that you must adopt to address price dynamism in this market.
Insights into Enterprise Routers Supply Market
- Most of the enterprise routers suppliers are not only providing new routers but are also upgrading the old routers of their buyers, irrespective of the type of router. Many buyers prefer customized enterprise routers to suit specific requirements. Hence, suppliers offer a wide range of enterprise routers to buyers, based on their needs.
- The enterprise routers suppliers market is highly fragmented, with multiple regional and global players present. Global players operate on high profit margins, as they develop different types of enterprise routers for various end-users. Global suppliers, such as Cisco, Juniper, and HPE, make use of advanced virtual prototyping tools that allow them to customize their products to meet customer preferences.
- Enterprise routers suppliers are adopting automation and robotics in the production process. This offers an excellent cost-saving opportunity for suppliers, as the adoption of automation will aid in optimal plant utilization, reduce employee cost, and improve the product quality, thereby leading to more profits and long-term associations with buyers.
Insights into Some of the Leading Enterprise Routers Suppliers
Volatile enterprise routers price trends coupled with sub-optimal supplier partnership is resulting in declining ROI of a majority of buyers in this market. In view of this, the enterprise routers market procurement intelligence report has enlisted the top suppliers, best selection criteria, and negotiation strategies for such suppliers. These insights will aid buyers to take a collaborative approach with the enterprise routers suppliers to identify areas where they can optimize their procurement spend. The top enterprise routers suppliers highlighted in this report include:
- Cisco Systems Inc.
- Huawei Investment & Holding Co. Ltd.
- Hewlett Packard Enterprise Co.
- Juniper Networks Inc.
- ZTE Corp.
- Nokia Corp.
Criteria to select suppliers in this dynamic enterprise routers market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
