Global network equipment market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Global Network Equipment Market Overview

• The Global Network Equipment Market is valued at USD 145 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-speed internet connectivity, the proliferation of IoT devices, and the expansion of cloud computing services. The need for robust network infrastructure to support these technologies has led to significant investments in network equipment across various sectors. The rise of cloud-based solutions, rapid adoption of 5G, and the expansion of edge computing are further accelerating market growth.
• Key players in this market include the United States, China, and Germany, which dominate due to their advanced technological capabilities, substantial investments in research and development, and a strong presence of major telecommunications companies. The United States leads in innovation and product development, while China benefits from a vast manufacturing base and growing domestic demand. Germany, as a leader in industrial automation and smart manufacturing, continues to drive demand for advanced networking solutions.
• In 2023, the European Union implemented the Digital Markets Act (Regulation (EU) 2022/1925) issued by the European Parliament and the Council. This regulation mandates that large tech companies designated as "gatekeepers" provide interoperability and access to their core platform services, including network and data sharing interfaces. Compliance with these standards is expected to drive demand for network equipment that supports enhanced interoperability, security, and fair competition across the digital sector.

Global Network Equipment Market Segmentation

By Type:The market is segmented into various types of network equipment, including routers, switches, firewalls, access points, network management software, gateways, fiber optic equipment, and others. Each of these subsegments plays a crucial role in the overall network infrastructure, catering to different needs such as data transmission, security, and management. Hardware remains the largest segment, with routers and switches leading due to their foundational role in connectivity and data management.

By End-User:The end-user segmentation includes telecommunications service providers, data centers, enterprises (both SMEs and large enterprises), government and defense, healthcare, retail and e-commerce, manufacturing, and others. Each end-user category has unique requirements for network equipment, influencing purchasing decisions and market dynamics. Telecommunications service providers and data centers remain the largest consumers, driven by ongoing investments in 5G, cloud, and hyperscale infrastructure.

Global Network Equipment Market Competitive Landscape

The Global Network Equipment Market is characterized by a dynamic mix of regional and international players. Leading participants such as Cisco Systems, Inc., Juniper Networks, Inc., Arista Networks, Inc., Hewlett Packard Enterprise, Huawei Technologies Co., Ltd., Nokia Corporation, Extreme Networks, Inc., Dell Technologies Inc., Netgear, Inc., TP-Link Technologies Co., Ltd., Brocade Communications Systems, Inc., Mellanox Technologies, Ltd., Ciena Corporation, ZTE Corporation, Fortinet, Inc., Ericsson AB, Alcatel-Lucent Enterprise, Ubiquiti Inc., CommScope Holding Company, Inc., H3C Technologies Co., Ltd. contribute to innovation, geographic expansion, and service delivery in this space.

Global Network Equipment Market Industry Analysis

Growth Drivers

• Increasing Demand for High-Speed Internet:The global demand for high-speed internet is projected to reach 1.8 billion broadband subscriptions in future, driven by a surge in remote work and online services. According to the International Telecommunication Union, global internet usage increased by 12% in future, highlighting the necessity for robust network infrastructure. This demand is particularly pronounced in urban areas, where over 85% of the population relies on high-speed connectivity for daily activities, thus propelling the network equipment market forward.
• Expansion of Cloud Computing Services:The global cloud computing market is expected to grow to $1 trillion in future, with a significant portion attributed to increased enterprise adoption. As organizations migrate to cloud-based solutions, the need for advanced network equipment to support these services intensifies. A report from Gartner indicates that 75% of enterprises will have adopted a cloud-first strategy in future, necessitating investments in scalable and efficient network infrastructure to accommodate this shift.
• Rise in IoT Devices and Applications:The number of connected IoT devices is projected to exceed 35 billion in future, creating a substantial demand for network equipment capable of handling increased data traffic. According to Statista, the global IoT market is expected to reach $2 trillion in future, driven by applications in smart homes, healthcare, and industrial automation. This proliferation of devices necessitates enhanced network capabilities, thereby fueling growth in the network equipment sector.

Market Challenges

• High Initial Investment Costs:The initial capital expenditure for deploying advanced network equipment can be substantial, often exceeding $1.5 million for mid-sized enterprises. This financial barrier can deter smaller companies from upgrading their infrastructure. According to a report by Deloitte, 65% of small businesses cite cost as a primary obstacle to adopting new technologies, which can hinder overall market growth and innovation in the network equipment sector.
• Rapid Technological Changes:The network equipment industry faces constant pressure to innovate, with new technologies emerging at an unprecedented pace. For instance, the shift from traditional networking to software-defined networking (SDN) requires companies to frequently update their equipment. A study by IDC indicates that 45% of IT budgets are now allocated to new technology adoption, which can strain resources and complicate long-term planning for network infrastructure investments.

Global Network Equipment Market Future Outlook

The future of the network equipment market is poised for significant transformation, driven by technological advancements and evolving consumer needs. As 5G technology becomes more widespread, it will enable faster data transmission and support a greater number of connected devices. Additionally, the emphasis on energy-efficient solutions will likely lead to innovations that reduce operational costs while enhancing performance. Companies that adapt to these trends will be well-positioned to capitalize on emerging opportunities in the market.

Market Opportunities

• Adoption of 5G Technology:The rollout of 5G networks is expected to create a $1 trillion market opportunity in future. This technology will enhance connectivity and enable new applications, such as autonomous vehicles and smart cities, driving demand for advanced network equipment. Companies investing in 5G infrastructure will likely see substantial returns as they cater to this burgeoning market.
• Increased Focus on Smart Cities:The global smart city market is projected to reach $3 trillion in future, with significant investments in network infrastructure. As cities adopt IoT solutions for traffic management, energy efficiency, and public safety, the demand for reliable network equipment will surge. This presents a lucrative opportunity for companies to develop tailored solutions that meet the unique needs of urban environments.