Global Networking Equipment Market 2026–2035

Report Description

The market size of global networking equipment will be estimated at USD 168 billion in 2025 and is expected to grow to between USD 176 billion in 2026 and about USD 276 billion by 2035, with a current CAGR (compound annual growth rate) of 5.1% during the period of 2026 to 2035.

Networking equipment is a set of hardware devices that connect computers, servers, cell phones, and other devices together so that they may communicate and interact with each other. Examples of such equipment are routers, switches, hubs, modems, access points, network interface cards, gateways, firewalls and repeaters. These devices are used to execute certain activities such as routing, switching, accessing, connecting, distributing data, and securing connections.

For example, a router is usually used to link different networks, while a switch is used to link devices in a group or local network. Other equipment such as access points allows for wireless communication, modems provide access to the internet and firewalls provide protection to networks. Network devices are used in homes, businesses, data centers, telecommunication companies and enterprises for smooth data transmission.

Market Highlight

• In 2025, the Asia Pacific will dominate the global market with an estimated market share of 35%. The growth is due to the increasing investment in 5G networks.

• Europe is growing at the fastest rate, driven by the growing investment by the key market players.

• By device type, the router segment represented the highest revenue share in 2025 of 26.5%.

• By connectivity, the WiFi segment would have the highest share of the market in 2025 of 39%.

• By network, the public segment would have the highest share of the market in 2025 of 68%.

• By industry, the telecom segment would have the highest share of the market in 2025 of 62%.

Significant Growth Factors

• Rapid Growth of Data Centers and Cloud Computing: The growth of the data centers and cloud computing is one of the primary trends contributing to the development of the networking equipment market. The rising need for cloud-based applications, artificial intelligence (AI), big data, and digitalization leads to the expansion and updating of infrastructure by hyperscalers, enterprises, and data center constructors. The growing number of data centers, which are characterized by a large scale and high computation power, leads to the increased need for switches, routers, network equipment, and optical networking devices. The worldwide data center capacity is estimated to almost double by 2030 compared to 2026 and generate a significant amount of data that requires high-bandwidth, low-latency, and high-reliability networks. The rising demand for AI-related services is also driving the need for high-performance networking infrastructure in 2026. Moreover, Cisco’s revenue from orders for AI infrastructure reached $9.3 billion in fiscal 2026, which underscores the strong demand for networking infrastructure from hyperscalers and AI-centric data centers. Thus, the rising needs for cloud-based platforms, hyperscale data centers, and AI data centers will contribute to the increased need for networking infrastructure. drives the market growth.

• Increasing Data Traffic: Increasing data traffic is among the key factors driving the networking equipment market. The soaring adoption of cloud computing, video, IoT devices, online platforms, artificial intelligence, and other data-intensive technologies has prompted a need for enhanced data exchange and processing. As a result, many firms operating in the enterprise, telecom, data-center markets, and other markets are upgrading their network systems to improve bandwidth and speed, reduce latency, and ensure reliable data transmission. Moreover, the growing data load due to AI workloads requires a powerful transfer of information from servers to GPUs and other related data centers. This surge in traffic is raising demands for high-speed Ethernet switches, routers, fiber optics, and other equipment to support seamless traffic, promoting the networking equipment market growth. Hence, the augmentation in traffic is driving organizations to adopt high-bandwidth and high-capacity devices to replace traditional infrastructure, thus propelling the market.

What are the Major Advances Changing the Networking Equipment Market Today?

• AI-optimized Networking: AI optimized networking is set to become the key trend in the network equipment market in 2026 as the industry looks to meet the needs of generative AI, agentic AI, and large-scale GPU clusters. This requires networks that include extremely high bandwidth, low and predictable latency, intelligent congestion management and control, and robust communication infrastructure to host thousands of GPUs. The market is seeing an increase in the number of AI optimized switches, SuperNICs, DPUs, high bandwidth Ethernet, fiber, and network-management platforms. For example, NVIDIA’s Spectrum-X Ethernet platform which combines AI optimized Ethernet switches and SuperNICs, can deliver up to 1.6X higher AI network performance over traditional Ethernet solutions. Product innovation is also on the rise with NVIDIA’s Spectrum-6 Ethernet switch systems providing 102.4 Tb/s of switching capacity, double the capacity of the previous generation Spectrum-5 Ethernet switches, supporting hundreds of thousands of GPUs in large scale AI manufacturing facilities. In 2026, Cisco announced new Silicon One G300-based N9000 switches offering 102.4T switching capacity, with 1.6T scale out performance, 800G networking, direct-to-chip liquid cooling, advanced optics, AI optimized telemetry, and load balancing. The company is also set to introduce 1.6 Tb/s SuperNICs connectivity, DPUs, and co-packaged silicon photonics, allowing for much faster GPU-to-GPU communications in enterprise AI data centers while reducing bandwidth and power consumption in large AI clusters.

• Energy-efficient Networking: Energy-efficient networking is an increasing necessity in 2026 as AI, cloud and hyperscale demand more electricity. While networking normally consumes only up to ~5% of a data center’s electricity, performance per watt and bandwidth per watt will be significant measures. Network hardware vendors are stepping up with more efficient switch ASICs, silicon photonics and co-packaged optics, linear pluggable optics (LPOs), smart power management and liquid cooling to deliver higher bandwidth per watt of power used. Product innovations will accelerate in 2026. Cisco’s recently introduced Silicon One G300 has a switching capability of 102.4 Tbps and uses liquid cooling and state-of-the-art optics. Cisco says its new products will help data centers lower power usage by almost 70% for specific workloads. Marvell’s Teralynx T100 is a 3 nm data center switch ASIC that can enable 102.4 Tbps of switching and will likely see acceptance as it can lower power consumption by up to 25% over rival solutions while fulfilling the bandwidth needs of AI applications. Likewise, silicon photonics and co-packaged optics are being employed to take advantage of the capacity to transmit data over optical signals more effectively than electrical ones. The industry is aiming for increased bandwidths per watt including 800G, 1.6T, and beyond for high-performance interconnects while balancing power and cooling budgets.

Category Wise Insights

By Device Type

Why Routers Hold a Prominent Position in the Market?

The router’s segment represented the highest revenue share in 2025 of 26.5%. The revenue growth of routers is primarily driven by continuous cloud migration, expansion of data center infrastructure, higher internet and broadband traffic, 5G rollout, enterprise digitization and growth of software-defined wide area networks (SD-WAN) and edge computing.

There is also a growing demand for more powerful routers to handle the increasing amount of data and artificial intelligence traffic. Ultrahigh throughput routers with over 100 Gbps of data will grow quicker than their lower throughput equivalents. Cellular routers are also likely to gain from the growth of 5G private networks.

The switches segment is growing at the highest CAGR during the projected period. Most of its revenue comes from building hyperscale data centers for artificial intelligence, which link graphics processing units, servers, storage and other systems with high-speed switches. The growth in adoption of higher-speed Ethernet is another significant aspect. For example, 800G switches represented 35.8% of data center Ethernet switch revenue in the first quarter of 2026.

By Connectivity

Why WiFi Capture the Highest Market Share in the Networking Equipment Market?

The WiFi segment would have the highest share of the market in 2025, of 39%. Wi-Fi revenue growth drivers are Wi-Fi 7 adoption, enterprise infrastructure updates, more data usage, expansion in AI and IoT, high density access needs and the growing need for multi-gigabit wireless connections. The move also produces value for many networking corporations by permitting higher average selling prices (ASPs), as Wi-Fi 7 access points and supporting infrastructure generally offer more advanced functionality than their predecessors.

The cellular segment is growing at the fastest rate over the projected period. The rapid expansion of 5G networks and robust demand for fast, reliable connectivity are fueling revenue growth. Telecom companies are upgrading their networks to 5G technology to cope with the increasing demand for mobile data. At the same time companies are rolling out private 5G networks to enable manufacturing, logistics, energy, healthcare and other jail applications that require ultra-low latency and wireless connection.

By Network

Why Public Capture the Highest Market Share in the Networking Equipment Market?

The public segment would have the highest share of the market in 2025 of 68%. Revenue growth in public networks is driven by the expansion of broadband and fiber infrastructure and increased demand for internet access. Governments and operators are investing in the building of networks that enable broadband connection to rural regions, government, transport, healthcare, education and cities. Also, the BharatNet project has achieved tremendous results till March 2026, the number of linked Gram Panchayats has reached 218462, while the total length of deployed fiber optic cables is 7.22 lakh km.

The private segment is growing at the fastest rate over the projected period. The increasing adoption of private 5G networks by manufacturing, logistics, mining, energy and utilities, healthcare, and transportation industries is one of the major factors driving the growth of the private network market. This trend is because private 5G can enable more control over the coverage, latency, device access, data routing, and security policies of the network. Consequently, private 5G networks can be applied in industrial automation, robotics, IoT, autonomous vehicles, and other applications.

By Industry

What Factor Drive Telecom Industry in the Networking Equipment Market?

The telecom segment would have the highest share of the market in 2025, of 62%. The revenue growth is mainly driven by the continued rollout and densification of fifth-generation (5G) networks. The requirement to serve rising technological applications such as IoT, cloud, edge and real-time digital services is pushing the demand for faster data rates and capacity, leading to a high demand for radio access network equipment as network operators deploy new cellular sites to satisfy the surging demand.

Network upgrades are a big cash generator also. Telecom operators are updating their networks to 5G standalone and cloud native cores while using Open RAN, optical transport and network automation solutions. Another important driver is the growing need for optical transport solutions, driven by network operators’ desire to keep pace with the bandwidth expansion requirements of 5G and data center connections.

The retail & e-commerce segment is growing at the fastest rate over the projected period. The increasing trend of eCommerce and online purchasing of networking gear is a major factor contributing to the increase in income. Buyers are increasingly searching and comparing specifications, prices, reviews and performance of various items online before making a purchase decision, while at the same time direct sales from manufacturers and other platforms are providing more accessibility and convenience for buyers.

Report Scope

Regional Analysis

How Big is the Asia Pacific Networking Equipment Market Size?

Its market size, in terms of the Asia Pacific networking equipment, is projected to be USD 59 billion in 2025 with a growth of about USD 107 billion in 2035 with a CAGR of 6.2% between 2026 and 2035.

Why did the Asia Pacific Dominate the Networking Equipment Market in 2025?

In 2025, the Asia Pacific will dominate the global market with an estimated market share of 35%. A significant factor driving the rise in revenue is the boom in data centers and AI infrastructure in such regions as China, India, Japan, Singapore, South Korea, and Australia.

AI applications are typically connected through high-bandwidth and low-latency links between GPUs, servers, storage, and data centers via 800G and higher-speed Ethernet switches, high-performance routers, optical interconnects, and AI-optimized switches and routers, which leads to an increase in demand for such products. Moreover, Cisco’s $9.3 billion worth of AI infrastructure orders in fiscal 2026 show that the networking field is becoming an increasingly important part of data center investments in general and AI infrastructure in particular.

China Networking Equipment Market Trends

China captures the highest market share. One of the key causes for revenue growth is China’s rapid construction of next generation communications infrastructure. The government has highlighted the development of 5G, 5G-A, high-speed optical networks, satellites and future 6G communications.

In the next five years, the upstream and downstream industries of infrastructure construction are estimated to contribute about RMB 7 trillion in economic production. It offers excellent potential for networking equipment vendors. The government has also planned to build 500,000 new 5G-A base stations in the next five years, pushing network equipment improvements.

Why is Europe Growing at the Highest CAGR in the Networking Equipment Market?

Europe is growing at the highest CAGR over the projected period. European demand for data center capacity will outstrip supply in 2025, as AI and cloud workloads push infrastructure spending to a new level. Commercial colocation and hyperscale data centers are estimated to represent more than two-thirds (67%) of total IT power capacity in Europe. The increasing demand to host cloud and AI workloads is creating an increasing demand for high-capacity Ethernet switches, routers, optical interconnects, network security and data-center networking solutions.

UK Networking Equipment Market Trends

UK holds a prominent revenue share. The growth is driven by investment in full fibre broadband, 5G, cloud, data centres, AI infrastructure, and enterprise network renewal. The UK is seeing a broad-based upgrade of both fixed and mobile networks and a transition from copper to fibre and from 2G/3G to 4G/5G.

As of January 2026, 88% of the UK was covered by gigabit capable broadband, and 5G was available outside 98% of UK homes. Overall, the modernisation of the UK’s broadband and mobile networks is driving demand for routers, switches, optical transport, wireless infrastructure, gateways, and other communication equipment.

Why is North America is growing at a steady rate in the Networking Equipment Market?

North America is growing at a steady rate. The increase is majorly contributed by the increasing development of artificial intelligence infrastructure, hyperscale data centers, cloud computing, enterprise digital transformation, 5G and network modernization.

North America was the dominant region in the development of artificial intelligence infrastructure. In the first quarter of 2026, the number of data centers in the North American region expanded by 33% year-on-year. Demand for switches, routers, optical networking gear, wireless and other infrastructure is being driven by hyperscalers, AI start-ups and specialist cloud enablers.

US Networking Equipment Market Trends

US holds a prominent market share in 2025. Company presence is one of the critical success factors contributing to the United States market presence. Cisco Systems is a multinational American technology conglomerate headquartered in San Jose, California. The company offers a wide range of products, including switching, routing, wireless, data-center products, and AI infrastructure.

The company’s networking product sales rose 21 percent year over year to $8.662 billion in the first quarter ended January 2026. The growth was led by AI infrastructure, data-center switching, service-provider routing, enterprise routing, campus switching, and wireless. Arista Networks is a networking company with its headquarters in Santa Clara, California. This company is well-positioned to benefit from the demand for cloud and AI data-center networks.

The company’s revenue for Q1 2026 amounted to $2.709 billion, which increased by 35.1 percent compared to the same period last year. Furthermore, the company’s 7060XE7 1.6T product portfolio is designed to provide rack-scale AI infrastructure and develop high-density, power-efficient AI fabric networks.

Why is the Middle East & Africa Region is growing rapidly in the Networking Equipment?

MEA is growing at a steady rate. The digital transformation and smart city plans led by the government are fueling the region’s growth. Gulf governments are heavily investing in digital government, smart cities, cloud, AI and sovereign digital infrastructure. Investment in data centers, cloud and communication infrastructure is being driven by Saudi Vision 2030 and the UAE’s digital economy initiatives. The TMT industry in the Middle East is also seeing significant expenditures in AI, cloud, advanced communication and hyperscale infrastructure which in turn, is creating demand for networking equipment.

UAE Networking Equipment Market Trends

The UAE holds a prominent share in 2025. The growth is owing to the rapid deployment of 5G networks and growing government investment.

Top Players in the Networking Equipment Market and Their Offerings

• Telefonaktiebolaget LM Ericsson
• Nokia Corporation
• Samsung Electronics Co. Ltd.
• ZTE Corporation
• Juniper Networks Inc.
• Huawei Technologies Co. Ltd.
• Cisco Systems Inc.
• Hewlett Packard Enterprise Development LP
• Broadcom
• ALE International (Alcatel-Lucent)
• Hewlett Packard Enterprise Development LP
• Tejas Networks
• Extreme Networks
• Super Micro Computer Inc.
• NVIDIA Corporation
• Belden Inc.
• Others

Key Developments

The networking equipment market has experienced considerable changes in the last two years as the market players are trying to diversify their technological aspects and develop product portfolios using strategic approaches.

• In January 2025, Hewlett Packard Enterprise announced new capabilities to help retail customers improve customer experiences and operational efficiency with connectivity and high-performance edge computing required to modernize retail environments.

• In March 2025, ZTE Corporation, a leading global provider of integrated information and communication technology solutions, unveiled a new home network product portfolio at MWC Barcelona 2025. The portfolio includes the next-gen 4K AI soundbar, AI home media center, high-performance LinkPro Wi-Fi 7 BE6500/BE9400, the industry’s first AI screen-equipped FTTR RoomPON 6.0, and the ZENIC ONE management platform. These products address operators’ needs for networking, video, and AI cloud management in the smart home sector, boosting market competitiveness and enabling synergy.

These strategic measures have enabled the companies to reinforce their competitive positions, increase the product line, boost their technological competencies and also seize growth opportunities in the fast-growing networking equipment market.

The Networking Equipment Market is segmented as follows:

By Device Type

• Routers
• Gateway
• Switches
• Wireless Access Points (WLAN)
• Others

By Connectivity

• WiFi
• LoRa
• Cellular
• Others

By Network

• Public
• Private

By Industry

• Telecom
• Government & Defense
• Retail & eCommerce
• Healthcare
• BFSI
• Manufacturing
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America