Enterprise Routers & Switches Category Overview

The enterprise routers & switches category is anticipated to grow at a CAGR of 6.30% from 2023 to 2030. In 2022, the category size was estimated to be valued at USD 50.50 billion. The demand can be attributed to the growing digital transformation initiatives; a trend accelerated by the pandemic has led to the emergence of new network requirements. Router and switches provide the networking infrastructure required to connect and manage the diverse digital assets. The increasing number of remote and hybrid work models also fuels the demand for robust and scalable networking solutions. Handling of large data volumes, ensuring network security, IoT connectivity, meeting industry specific needs are the factors driving the category growth.

The introduction of Gigabit Ethernet switches is one of the most important developments in industrial ethernet switch technology. These switches represent a significant advance over the conventional 10/100 Mbps ethernet switches by handling data transmission at speeds of up to 1 Gigabit per second. Another revolutionary development is the fusion of switches and Internet of Things (IoT) technology. IoT-enabled switches can link a variety of equipment and sensors, enabling the collection and analysis of data in real time. This connectivity enables businesses to closely monitor their operations, spot potential problems earlier, and take data-driven decisions to increase operational effectiveness. Araknis Networks, a networking company, introduced new switches and routers for high-speed processing and communication. These devices are compatible with the OvrC cloud management platform. Industrial manufacturing giant, Siemens in February 2023 has launched a private industrial 5G router, a crucial part of the manufacturing sector's digital revolution.

Order your copy of the Enterprise Routers & Switches category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The category is highly fragmented in nature. The requirement for the products at an enterprise level is company-centric and specific. As such, the product needs to be tailored according to the customer’s specifications. The category is flooded with suppliers providing a variety of products with diverse specifications. Numerous technology vendors and manufacturers offer a wide range of options with different features, performance levels, and pricing structures. Rapid technological advancements such as software-defined networking (SDN), network virtualization, etc. result in a wide array of options enhancing competition. Innovative solutions by new entrants further diversify the category. Suppliers collaborate to offer integrated solutions. In April 2023, Huawei Technologies, a large multinational technology business, signed a partnership with TD Africa for Small and Medium Enterprises (SMEs) access to cutting-edge technology. The agreement covers smart storage and the newest networking technology.

Enterprise Routers & Switches Procurement Intelligence Report Scope

The Enterprise Routers & Switches category is expected to have pricing growth outlook of 3% - 5% (Annual) from 2023 to 2030, with below pricing models. 

• Cost-plus pricing model 
• Value-based pricing model 
• Fixed pricing model
• Competition pricing model

Supplier Selection Scope of Report

• Cost and pricing 
• Vendor evaluation 
• Integration capabilities 
• Security 
• Compliance 

Supplier Selection Criteria of Report

• Lean supply 
• service support 
• scalability 
• quality standard 
• technical specifications 
• operational capabilities 
• regulatory standards and mandates 
• category innovations 
• others 

Enterprise Routers & Switches Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape
• Market estimates and forecasts from 2023 to 2030
• Growth opportunities, trends, and driver analysis
• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
• Porter’s 5 forces
• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
• Engagement and operating models, KPI, and SLA elements
• LCC/BCC analysis and negotiation strategies
• Peer benchmarking and product analysis
• Market report in PDF, Excel, and PPT and online dashboard versions 

Enterprise Routers & Switches Procurement Cost and Supplier Intelligence

The major cost component of the category is hardware. The level of performance, processing power, and features offered by the products can significantly influence its cost. High-performance devices with advanced capabilities generally come at a higher price. The number and type of ports (ethernet, fiber-optic, etc.) also impacts the price. Modular routers and switches with features of expansion and scalability often have a base unit cost along with additional costs for expansion modules or line cards. It’s essential to consider other factors as well, such as ongoing support and maintenance, software licensing, scalability, and compatibility. Price of low-cost business-grade routers with strong VPN compatibility, improved security, and business application range from USD100 to USD200. Switch hardware typically costs between USD250 to USD450. The starting price for HPE Aruba, the HPE’s networking division, is USD79.99. Price of hardware from Juniper Network starts from USD2,300. The starting price for Netgear routers is USD55.99.

The category sourcing needs to involve a strategic approach for selecting and procuring networking equipment that aligns with the organization’s requirements, scalability, budget and integration with existing infrastructure. Evaluate the long-term costs, including hardware, software licenses, support, maintenance, and potential upgrade. Link speed is a crucial parameter when selecting switches. There are three different speed categories to take into account: 10/100 mbps a slower option, 1000 mbps (or 1 Gbps) a meeting point between speed requirements and cost effectiveness and 10 Gbps. In the Asia-Pacific region, a wide variety of businesses engaged in manufacturing and supplying these products can be found in nations including China, Taiwan, South Korea, and Japan.

List of Key Suppliers

• Cisco 
• Broadcom 
• Arista Networks 
• Palo Alto Networks 
• Juniper Networks 
• Dell 
• Hewlett Packard Enterprise 
• Huawei 
• Nokia 
• Extreme Networks  

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Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions