According to the market research analysts at Technavio, the commercial router market will witness steady growth and will post a moderate CAGR of close to 7% during the forecast period. With the increasing deployment of local area network (LANs) and home area networks such as Wi-Fi and WLAN, the market for commercial router is anticipated to have a positive outlook in the coming years. The augmented adoption of LAN network is primarily because of the availability of high-speed mobile broadband networks and decreasing deployment costs. Moreover, most business organizations and university campuses are adopting virtual private networks for their data security and providing a seamless connection to their employees and students. The adoption of virtual private networks by business organizations and universities enables them to provide indoor location-based service (LBS) on their premises. Furthermore, most airport authorities in developed countries like the US and Singapore use indoor LBS to track and monitor assets used in the airport, which will directly impact the commercial router market over the next four years.
One of the recent trends gaining traction in the market is the increasing use of commercial routers in the retail industry. Since retail is a highly competitive industry, it becomes imperative to provide the best customer experience in the most cost-effective manner. With the introduction of several wirelessly connected solutions such as point of sale (POS) systems, vending machines, radio frequency identification (RFID) systems, and kiosks, the overall shopping experience of customers has improved and has also helped in reducing costs, automating manual processes, and expanding product portfolios into new markets. For instance, POS systems allow enterprise staff to provide a better customer experience by enabling flexible payment process and enhancing queue management. Moreover, most retailers these days are installing security cameras in their retail stores due to the decline in prices of M2M communication devices, which will boost this market’s growth until the end of 2021.
Competitive landscape and key vendors
The global commercial router market is characterized by the presence of high competition among the well-established vendors in the market. Vendors in the market are shifting rapidly to optimize the Internet of Things (IoT) revolution. A large amount of data collected from connected devices enables vendors to improve customer and partner assistance and support. Wi-Fi wireless technology dominates the connected devices market. However, the emergence of low-power wireless technologies such as ZigBee and Z-Wave will intensify the competition for Wi-Fi. The increasing popularity of IoT has a significant impact on the global commercial router market.
Key vendors in this market are -
Brocade Communication Systems
Other prominent vendors in the market are ADTRAN, Aerohive, Alcatel-Lucent Enterprise (Nokia), ASUSTeK Computer, Avaya, Belkin International (Linksys), Buffalo Technology, D-Link, DrayTek, Juniper Networks, MikroTik, NETGEAR, OneAccess Networks, TP-Link Technologies, and ZTE.
Segmentation by enterprise level ad analysis of the commercial router market
During 2016, the mid-level enterprise segment accounted for the majority of market shares and will continue to lead the market in the coming years. Optimization of processes and enhanced workforce productivity are some of the key factors driving the adoption of commercial routers in mid-level enterprises. Therefore, enterprises have increased their spending on hardware equipment in tandem with their business expansion activities. Moreover, the deployment of extensive bandwidth applications, including supply chain management (SCM), enterprise resource planning (ERP), and data warehousing, has led to the increased requirement of networking infrastructures such as hubs, switches, and routers.
Geographical segmentation and analysis of the commercial router market
In terms of geography, the Americas led the global commercial router market during 2016 and will likely to lead the market over the next four years. Nearly 80% of the enterprises in the US have been using connected products and services with the support of cloud platforms and data analytics to improve their business efficiency. With the introduction of IoT, there is an augmented demand for efficient and reliable communication networks to process business operations across industries. Moreover, the Federal Communications Commission in the US has approved $1.5 billion E-Rate funding program, which is aimed at providing access to disadvantaged schools with high-speed Internet. This is also expected to significantly contribute to this market’s growth in the region.
Key questions answered in the report include
What will the market size and the growth rate be in 2021?
What are the key factors driving the global commercial router market?
What are the key market trends impacting the growth of the global commercial router market?
What are the challenges to market growth?
Who are the key vendors in the global commercial router market?
What are the market opportunities and threats faced by the vendors in the global commercial router market?
What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
What are the key outcomes of the five forces analysis of the global commercial router market?
Technavio also offers customization on reports based on specific client requirement.