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The wireless router market size is forecast to increase by USD 8.09 billion at a CAGR of 9.24% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Firstly, the increasing adoption of smart home systems that require a reliable and high-speed internet connection is driving demand for wireless routers. Secondly, the widespread use of WLAN (Wireless Local Area Network) technology in both residential and commercial settings is fueling market expansion. Lastly, the surge in demand for distance learning and remote work solutions, which necessitate robust and stable internet connections, is further boosting the market growth. These factors collectively contribute to the robust expansion of the market. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is experiencing significant growth due to the increasing demand for high-speed internet access in both residential and commercial applications. Wireless access points are essential components in creating private computer networks, enabling connected devices such as laptops, smart home devices, Smart TVs, Speakers, and Security cameras to access the internet. Bandwidth-intensive apps and Smart Home Gadgets are driving the need for high-capacity networks. The market landscape depends on the private computer network, wired local area network, wireless-only LAN, Internet of Things (IoT) gadgets, Point of sale (POS) systems, single-band wireless routers, dual-band wireless routers. The emergence of 5G Infrastructure and Wi-Fi 6 technology, including Wi-Fi 6E routers, is providing the necessary network traffic capacity to support these demands. Single-band, dual-band, and tri-band wireless routers cater to various network requirements. Mobile broadband and M2M communication are also contributing to the market's expansion, particularly in the home office sector. The development of advanced wireless technologies is expected to continue propelling the market forward. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing adoption of smart connected home systems drives the market growth. The market experiences continuous growth due to the increasing adoption of smart home appliances, such as refrigerators, dishwashers, smart TVs, voice assistance, and microwave ovens. These devices, which are part of the Internet of Things (IoT), require robust wireless connectivity to function optimally. Malware and unauthorized access pose security risks, necessitating the use of high-end wireless routers.
However, limited coverage may necessitate the use of range extenders. Technological fragmentation and the proliferation of wireless standards, including Wi-Fi 4 (802.11n), Wi-Fi 5 (802.11ac), and Wi-Fi 6 (802.11ax), add complexity to the market. Broadband connectivity is essential for digital services, including those in rural areas, and privacy concerns may influence consumer choices. Single Band routers operating on the 2.4 GHz frequency band and Dual Band routers using 5 GHz frequency bands cater to different needs. Tri-Band routers offer additional capacity for large households and commercial or industrial applications. Hence, such factors are driving the market during the forecast period.
Increasing use of wireless router in retail industry is a primary trend in the market. In the dynamic and competitive landscape of the retail industry, wireless connected solutions have emerged as essential tools to deliver an optimal customer experience while minimizing costs. Among these solutions, point-of-sale (POS) systems, vending machines, radio frequency identification systems, and kiosks have gained significant traction. POS systems, in particular, enable flexible payment methods and streamline queue management, enhancing the shopping experience.
However, the retail sector faces numerous risks, including malware attacks, unauthorized access, and security breaches. High-end wireless routers play a crucial role in mitigating these risks, offering broadband connectivity and securing digital services. In rural areas and regions with limited coverage, range extenders are indispensable for maintaining uninterrupted Wi-Fi connectivity. Hence, such factors are driving the market during the forecast period.
Inferior communication network infrastructure in developing regions is a major challenge hindering the market. The market encompasses high-end routers designed to provide broadband connectivity for digital services, including voice and video calls via Voice over Internet Protocol (VoIP) and live streaming of music and videos. However, challenges such as malware and unauthorized access pose security concerns, necessitating advanced security features. In rural areas with limited coverage, range extenders are utilized to expand wireless signals.
Technological fragmentation arises due to the proliferation of various wireless standards, such as Wi-Fi 4 (802.11n), Wi-Fi 5 (802.11ac), and Wi-Fi 6 (802.11ax). Privacy concerns persist, particularly in single-band routers operating on the 2.4 GHz frequency band, which are more susceptible to interference. Dual-band routers utilizing both 2.4 GHz and 5 GHz frequency bands offer improved performance and reduced congestion. Hence, such factors are hindering the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adtran Holdings Inc: The company offers fiber optic, copper and coaxial-based infrastructures and fixed wireless solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The non-residential segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing number of linked devices requiring High-Speed Internet for seamless connectivity. With the rise of Bandwidth-intensive apps, Smart Home Gadgets such as Smart TVs, Speakers, Security cameras, and Network traffic from Distant Work and Online Learning, the demand for wireless routers is escalating.
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The non-residential segment was the largest segment and was valued at USD 8.07 billion in 2018. The advent of 5G Infrastructure and Wi-Fi 6, Wi-Fi 6E routers, and 5G networks are enabling Higher bandwidths, thereby enhancing Internet Penetration and expanding the scope of Wi-Fi networks. Beamforming technology is a key feature in modern wireless routers, ensuring optimal signal strength and coverage in Residential and Business settings. Smart City Initiatives, including Intelligent surveillance networks, Public Wi-Fi hotspots, and Smart transportation systems, are also driving the Rising Sales of consumer electronics, Gaming consoles, Cellphones, Streaming devices, and Mesh Networking Trend. Mesh networking systems are becoming increasingly popular due to their ability to provide uninterrupted connectivity in larger areas. Hence, such factors are fuelling the growth of this segment during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing significant growth due to the increasing number of linked devices requiring High-Speed Internet for seamless connectivity. With the rise of Bandwidth-intensive apps, Smart Home Gadgets such as Smart TVs, Speakers, Security cameras, and Network traffic from Distant Work and Online Learning, the demand for wireless routers is escalating. The advent of 5G Infrastructure and Wi-Fi 6, Wi-Fi 6E routers, and 5G networks are enabling Higher bandwidths, thereby enhancing Internet Penetration and expanding the scope of Wi-Fi networks. Beamforming technology is a key feature in modern wireless routers, ensuring optimal signal strength and coverage in Residential and Business settings. Smart City Initiatives, including Intelligent surveillance networks, Public Wi-Fi hotspots, and Smart transportation systems, are also driving the Rising Sales of consumer electronics, Gaming consoles, Cellphones, Streaming devices, and Mesh Networking Trend. Mesh networking systems are becoming increasingly popular due to their ability to provide uninterrupted connectivity in larger areas. Hence, such factors are driving the market in North America during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is a significant segment in the technology industry, driven by the increasing demand for seamless connectivity and high-speed internet access. Wireless routers enable users to establish wireless networks in their homes and offices, facilitating the use of multiple devices simultaneously. The market is witnessing growth due to the proliferation of the Internet of Things (IoT) and the increasing adoption of smart devices. Wireless routers come in various forms and specifications, including single-band, dual-band, and tri-band models. The latest routers support advanced features such as MU-MIMO technology, beamforming, and QoS, ensuring optimal network performance and coverage. The market is expected to grow further due to the increasing popularity of remote work and online learning, which require reliable and high-speed internet connections. Additionally, the ongoing development of 5G technology is expected to drive the demand for advanced wireless routers capable of supporting faster data transfer rates and lower latency. Manufacturers are focusing on enhancing the security features of wireless routers to address the growing concerns around data privacy and cybersecurity. The market is highly competitive, with several key players offering a wide range of products catering to different customer segments and requirements. Some of the notable players in the market include leading technology companies and specialized networking equipment manufacturers.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.24% |
Market growth 2024-2028 |
USD 8.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.53 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adtran Holdings Inc., Amped Wireless, ASUSTeK Computer Inc., Broadcom Inc., Buffalo Americas Inc., China Huaxin Post and Telecom Technologies Co. Ltd., Cisco Systems Inc., D Link Corp., DrayTek Corp., EDIMAX Technology Co. Ltd., Extreme Networks Inc., Hon Hai Precision Industry Co. Ltd., Huawei Investment & Holding Co., Ltd., Juniper Networks Inc., MERCUSYS Technologies Co. Ltd. , Netgear Inc., Shenzhen Tenda Technology Co. Ltd., SIA Mikrotikls, TP Link Corp. Ltd., and Xiaomi Communications Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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