Data Center Routers Market is Forecasted to Reach US$ 12.8 Billion in 2032, Says Stratview Research

The global data center routers market is projected to witness a growth rate of 16.8% annually from 2024 to 2032, with an anticipated size of US$ 12.8 billion by 2032, according to an analysis by Stratview Research.

Stratview Research, a global market research firm has launched a report on the global data center routers market which provides a comprehensive outlook of the global and regional industry forecast, current & emerging trends, segment analysis, competitive landscape, & more.

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Report Highlights

Segment Insights on the Data Center Routers Market:

The global data center routers market is segmented based on type, data center type, and region.

Based on the type - The market is segmented into top-of-rack routers, core routers, edge routers, aggregation routers, modular routers, and other types. Top-of-Rack (ToR) routers will lead the data center routers market in the next few years, fueled by their scalability and efficiency. By putting switches inside server racks, ToR architecture reduces cabling complexity and latency, resulting in better network performance. This configuration is especially beneficial for high-density applications since it enables easier scalability and maintenance. Additionally, the incorporation of sophisticated technologies like AI and machine learning into ToR switches further increases their ability to handle network traffic intelligently, responding to fluctuating workloads and optimizing data transmission. Such advantages make ToR routers the go-to solution for contemporary data centers seeking agility and high performance.

Based on the data center type - The market is segmented into enterprise, colocation, hyperscale, and edge. Hyperscale data centers are expected to dominate the data center router market as a result of high growth and growing capacity needs. As of early 2024, more than 1,000 hyperscale data centers are present globally, with around 120 to 130 new ones set to be deployed each year through the next ten years. This expansion is mainly spearheaded by the rising use of AI technology, which necessitates more sophisticated networking infrastructure. Consequently, hyperscale data centers are expected to make up a large share of the demand for high-performance network equipment.

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Which Region Shows the Most Promising Growth Forecast and Opportunity?

The analysis suggests that Asia-Pacific is expected to experience the fastest growth in the data center routers market over the forecast period. This growth outlook is majorly attributed to the following–

• Powerful mix of digital transformation and policy support.
• Countries like China, India, and Japan are rapidly advancing in digitalization, fueling a strong demand for secure and scalable data infrastructure. The widespread adoption of cloud computing, IoT, and AI technologies is further amplifying this need. On top of that, the rollout of 5G networks is boosting connectivity, making advanced networking solutions more critical than ever.
• Governments across the region are actively supporting this momentum through strategic investments and favorable policies. Meanwhile, data localization laws in countries such as Malaysia, Indonesia, and Vietnam are pushing for more local data storage, accelerating the development of new data centers. Together, these factors position Asia-Pacific as the fastest-growing and most dynamic market for data center routers.

Data Center Routers Market Drivers:

Some of the key drivers listed in the report are given below.

• Increasing adoption of cloud computing, AI, and machine learning
• Growing data traffic
• Fast digitalization, and the need for scalable
• Low-energy networking infrastructure
• The growth in hyperscale data centers and the introduction of cutting-edge technologies such as 5G and edge computing are propelling the demand for robust and high-performance networking solutions.

Top Companies in the Data Center Routers Market:

The market is consolidated, with around 50 players. Most of the major players compete in some of the governing factors, including price, product offerings, regional presence, etc. Stratview Research has identified the following companies as the top market players.

-          CISCO Systems

-          Arista Networks Inc.

-          Huawei Technologies Co., Ltd  

-          H3C Technologies Co., Ltd

-          Juniper Networks Inc.

-          Nokia

-          Mellanox Technologies (NVIDIA)

-          Lenovo

-          HP Enterprise

-          ODM Direct

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Related Reports:

• Data Center Networking Equipment Market
• Data Center Busway Market

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