Wireless Router Market by End-user, Type and Geography - Forecast and Analysis 2023-2027

Wireless Router Market Size 2022027

The wireless router market size is forecast to increase by USD 6.77 billion at a CAGR of 8.49% between 2022 and 2027. Market growth relies on several key factors, notably the surging adoption of smart connected home systems, driven by the desire for enhanced convenience and efficiency in residential settings. Additionally, the increased uptake of WLAN (Wireless Local Area Network) technologies contributes significantly to market expansion, facilitating seamless connectivity and communication within smart home ecosystems. Another driving force is the growing demand for distance learning solutions spurred by the proliferation of online education and remote work trends. As individuals seek flexible learning options and remote access to educational resources, the demand for technologies that support distance learning experiences continues to rise. Collectively, these factors propel the growth of the market for smart connected home systems, WLAN technologies, and distance learning solutions, shaping the future landscape of connected living and digital education.

 What will the Size of the Market be During the Forecast Period?

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Market Segmentation

In today's interconnected world, wireless routers play a crucial role in facilitating high-speed internet access and managing network traffic across various devices like laptops, smart home gadgets, and security cameras. With the advent of 5G Infrastructure and Wi-Fi 6E routers, users can enjoy enhanced connectivity and bandwidth for bandwidth-intensive apps and Internet of Things (IoT) gadgets. From private computer network to home office, the demand for wireless access points continues to grow, offering flexibility and reliability in M2M communication and mobile broadband connections.

This report extensively covers market segmentation by end-user (non-residential and residential), type (fixed and mobile), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By End-user

The market share growth by the non-residential segment will be significant during the forecast period. The non-residential wireless segment includes wireless routers used by commercial offices, enterprises, industries, transportation services, public utilities, educational institutions, and the hospitality sector.

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The non-residential segment showed a gradual increase in the market share of USD 7.52 billion in 2017. The deployment of extensive bandwidth applications, including supply chain management, enterprise resource planning, and data warehousing, has led to the increased requirement for networking infrastructures such as hubs, switches, and routers. Such operations propel the growth of the non-residential wireless router segment.

By Region

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North America is projected to contribute 34% of market growth by 2023. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.  The US and Canada are the major adopters of home Wi-Fi routers in North America. Home users in the US are early adopters of technologies, and the country is an attractive market for home wireless routers due to the increasing use of smart devices, online learning and banking, and OTT platforms. Also, factors such as the increasing use of smart appliances such as smart TVs, smartphones, smart refrigerators, and digital assistants (Google Assistant and Amazon Alexa); the presence of a mature end-user base; and early adoption of new technologies such as OTT platforms, online banking, and e-commerce platforms in North America drive the demand for high-speed Internet among home users in North America, which will propel the growth for the wireless router market in the region during the forecast period.

Market Dynamics and Customer Landscape

The market continues to evolve with options catering to diverse needs. From private computer network requiring wired local area network connections to home office seeking wireless-only LAN setups, there's a router for every scenario. Businesses benefit from routers supporting Point of Sale (POS) systems and Radio Frequency Identification systems, while consumers enjoy seamless connectivity with single-band wireless routers, dual-band wireless routers, and tri-band wireless routers. Additionally, features like built-in Speakers enhance functionality, reflecting the market's focus on versatility and innovation. Our researchers analyzed the data with 2022 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.

Key Market Driver 

The increasing adoption of smart connected home systems is the key factor driving market growth. A significant rise in the demand for smart home appliances, especially refrigerators, dishwashers, smart TV, voice assistants, and microwave ovens, has pushed the demand for wireless routers. Smart home devices can be connected to the cloud or some software component that lets them function on their own or based on a pattern or intelligence algorithm. These devices comprise wireless connecting devices and the IoT.

Further, countries such as the US, Canada, the UK, Germany, and France exhibit high adoption of smart home appliances. A major reason for the adoption of smart and innovative appliances is the use of smart home technologies, such as artificial intelligence-enabled smart home controllers and smart hubs that enable remote control of appliances. These devices require seamless Internet connectivity 24*7, which is enabled by wireless routers. Thus, the increasing use of smart connected devices in homes is driving the growth of the global wireless router market during the forecast period.

Significant Market Trend

The increasing use of wireless routers in the retail industry will fuel market growth. Retail is a highly competitive industry. The nature of this business is such that many consumers have access to stores and, therefore, the risks related to security, safety, communications, and building automation are numerous. Remote monitoring and security systems, such as machine-to-machine (M2M) security system, plays a vital role in the retail segment as their use prevents unaccounted and accidental losses of inventory. The system detects intrusion and shoplifting, deals with fire and explosion, and manages a wide variety of access authorizations.

Furthermore, retail store security devices such as security alarms and mechanical security are used to protect expensive merchandise. These are also cost-effective solutions. For instance, electronic article surveillance is a technology adopted by merchandisers wherein security tags are attached to the merchandise to prevent shoplifting. Retail security systems enhance traffic intelligence, inventory intelligence, labor efficiency, and on-floor and transaction visibility.

Major Market Challenge

The inferior communication network infrastructure in developing regions is a major challenge to market growth.  Strong network infrastructure is necessary to ensure minimum time lag during Internet communications and live streaming. This includes making calls through Voice over Internet Protocol (video and audio calling) and live streaming music and videos. Several developing countries such as Bangladesh, the Central African Republic, Nepal, and Haiti are not equipped with the required Internet network or telecom infrastructure to support high-speed Internet networks.

In many Asian countries, 4G technology has just begun to gain momentum. As 4G technology is an important component of error-free and uninterrupted telecom services, the lack of availability of 4G technology can hinder the adoption of wireless routers. Many rural areas in APAC and MEA are still not equipped with 4G connections. Such challenges will restrict the growth of the global wireless router market during the forecast period.

Market Customer Landscape

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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Players?

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 Inc. - The company offers wireless routers such as NetVanta series 3100, NetVanta series 3200, NetVanta series 3400, and NetVanta series 4000.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Amped Wireless
• ASUSTeK Computer Inc.
• Broadcom Inc.
• Buffalo Americas Inc.
• Cisco Systems Inc.
• D Link Corp
• DrayTek Corp.
• EDIMAX Technology Co. Ltd.
• Extreme Networks Inc.
• Hon Hai Precision Industry Co. Ltd.
• Huawei Technologies Co. Ltd.
• Juniper Networks Inc.
• MERCUSYS Technologies Co. Ltd. 
• Shenzhen Tenda Technology Co. Ltd.
• SIA Mikrotikls

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments

• End-user Outlook 
  • Non-Residential
  • Residential

• Type Outlook 
  • Fixed
  • Mobile

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing robust growth driven by the increasing demand for dependable internet access and secure products in high-density areas. With Wi-Fi technology advancements such as Wi-Fi 6 standards and mesh networking systems, consumers are experiencing superior performance and simultaneous connections across various connected devices. Industries like financial services, healthcare, and information technology are adopting high-speed internet connectivity to enhance patient-centric care delivery and secure data transfer. As smart homes become more prevalent, the need for reliable and interoperable wireless routers equipped with security features is rising. However, concerns regarding cybersecurity risks and privacy persist, driving the demand for AI-powered and secure Wi-Fi routers in both business settings and consumer electronics markets.

Further, the market is experiencing a surge in demand driven by factors such as reliable products and interoperability across various connected devices. With the advent of 5G networks and the need for higher bandwidths, industries like telecommunications and financial services are investing in AI-powered Wi-Fi routers to ensure secure connectivity for connected healthcare devices and smart city infrastructure. However, security worries regarding ransomware, malware, and unauthorized access persist, leading to the adoption of high-end wireless routers equipped with advanced security features such as beamforming and mesh networking. As internet penetration continues to rise, privacy concerns drive the demand for secure and reliable wireless routers in both industrial and consumer sectors, including online retail, offline retail, and entertainment.

Market Scope
Report Coverage	Details
Page number	159
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.49%
Market growth 2023-2027	USD 6.77 billion
Market structure	Concentrated
YoY growth (%)	8.23
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 34%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Adtran Inc., Amped Wireless, ASUSTeK Computer Inc., Broadcom Inc., Buffalo Americas Inc., Cisco Systems Inc., D Link Corp, DrayTek Corp., EDIMAX Technology Co. Ltd., Extreme Networks Inc., Hon Hai Precision Industry Co. Ltd., Huawei Technologies Co. Ltd., Juniper Networks Inc., MERCUSYS Technologies Co. Ltd., Shenzhen Tenda Technology Co. Ltd., SIA Mikrotikls, TP-Link Corp. Ltd., China Huaxin Post and Telecom Technologies Co. Ltd., Netgear Inc., and Xiaomi Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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