Enterprise Networking Market Size was valued at USD 361.4 Billion in 2022. The Enterprise Networking Market industry is projected to grow from USD 426.2 Billion in 2023 to USD 778.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.98% during the forecast period (2023 - 2032). The expanding adoption of wireless devices, the growing penetration of virtualization technologies and the Internet of Things (IoT), and the rising focus on network security and privacy are expected to be a significant market driver for the Enterprise Networking Market.
Figure 1: Enterprise Networking Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for enterprise networking is being driven by the Increasing adoption of digital technologies and worldwide spending on smart city developments. The growing importance of network infrastructure is closely tied to the process of digitalization, resulting in an increased demand for such infrastructure. Businesses are expanding their networks to meet the growing bandwidth needs of wireless networks. Key drivers of the enterprise network infrastructure market include the widespread use of mobile devices, the escalating demand for greater bandwidth, and the shift toward wireless technologies. Companies are also making substantial investments in network upgrades to enhance speed, providing a reliable, energy-efficient, and cost-effective solution. Additionally, enterprises are increasingly embracing advanced technologies like 100G Ethernet switches and adopting standards such as 802.11ac, which facilitates high-performance wireless networks capable of supporting a diverse range of devices, including smartphones, tablets, M2M devices, and IoT devices.
As per the Consumer Technology Association, global spending on smart city developments is expected to reach USD 34.35 billion by 2020, significantly influencing the market. Moreover, the rapid rise of China's middle class, predominantly an urban phenomenon, has lifted around 500 million people out of poverty in less than 30 years, showcasing cities' transformative power on living standards. China, with approximately 500 smart city pilot projects, the highest globally, covering cities of varying sizes, is poised to drive the demand for network equipment in the foreseeable future. As a result, it is anticipated that throughout the projection period, demand for the Enterprise Networking Market will increase due to the Increasing adoption of digital technologies and worldwide spending on smart city developments. Thus, driving the Enterprise Networking Market revenue.
The Enterprise Networking Market segmentation, based on Equipment includes Ethernet Switch, Enterprise Routers, WLAN, and Network Security. The network security segment dominated the market, accounting for 58% of market revenue (232.1 Billion). As digital organizations experience rapid growth, IT professionals perceive the lack of visibility as a significant challenge in dealing with network threats. Recognizing the critical importance of continuous monitoring across all users, applications, and devices, organizations are fostering closer collaboration between networking and security teams. This collaboration aims to leverage network infrastructure for comprehensive visibility, mitigating the risks of data breaches and cybersecurity threats.
The Enterprise Networking Market segmentation, based on Infrastructure Type includes In-house and Outsourced. The outsourced segment dominated the market, accounting for 58% of market revenue. Outsourcing enables organizations to concentrate on their core strengths by entrusting the management and upkeep of their networks to external providers. This approach liberates internal resources, enabling them to concentrate on strategic initiatives that foster business growth and innovation.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Enterprise Networking market in North America can be attributed to several key factors. The adoption of emerging technologies like cloud networking, SaaS-based applications, network analytics, DevOps, and virtualization has prompted users and businesses in North America to embrace enterprise network equipment products. Additionally, the increasing demand for cloud adoption, digital content, and compliance with new data sovereignty laws will contribute to the growth of the network equipment market in the North American region. The substantial investment by the United States Department of Defense in infrastructure modernization, including the upgrade of the Defense Information Systems Network (DISN) to 100 Gbps packet-optical transport systems from 10 Gbps transport speeds, is expected to further drive the market.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Europe Enterprise Networking Market accounts for the second-largest market share as the primary factor contributing to the regional growth of the market is the technology-driven foundation of economies. This growth is propelled by significant investments in network infrastructure modernization, digitalization initiatives, and the adoption of emerging networking technologies. European organizations place a high priority on aspects such as network security, compliance with data protection regulations, and ensuring seamless connectivity across distributed locations. The prevalence of ransomware, with more than 10 terabytes of data stolen monthly, stands out as a major cyber threat in the EU, with phishing identified as the most common initial vector for such attacks. The annual cost of cybercrime to the global economy is estimated to have reached €5.5 trillion by the end of 2020, doubling the figure from 2015. Further, the German Enterprise Networking Market held the largest market share, and the UK Enterprise Networking Market was the fastest-growing market in the European region
The Asia-Pacific Enterprise Networking Market is expected to grow at the fastest CAGR from 2023 to 2032. The industry is anticipated to witness expansion driven by factors such as increasing internet penetration, the growth of IT infrastructure, a thriving digital economy, a focus on digital transformation, widespread cloud adoption, and the rise of the Internet of Things (IoT). Additionally, the adoption of networking solutions by a growing number of small and medium-sized enterprises (SMEs) to enhance business operations and competitiveness is expected to contribute to market growth. According to data from the Ministry of Micro, Small & Medium Enterprises, as of May 18, 2023, the Udyam Registration portal recorded the registration of 16,215,785 MSMEs, replacing the previous Udyog Aadhaar Memorandum (UAM) filing process. Among the registered entities, micro-enterprises accounted for 95.88% (15,548,986), followed by small enterprises at 3.36% (546,471), and mid-sized enterprises at 0.32% (52,078). Moreover, China’s Enterprise Networking Market held the largest market share, and the Indian Enterprise Networking Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Enterprise Networking market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Enterprise Networking industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Enterprise Networking industry to benefit clients and increase the market sector. In recent years, the Enterprise Networking industry has offered some of the most significant advantages to the corporate sector. Major players in the Enterprise Networking Market, including A10 Networks Alation Inc.; ALE International; Broadcom Inc.; Cisco Systems, Inc.; Dell Inc.; Hewlett Packard Enterprise Development LP; Huawei Technologies Co., Ltd.; Juniper Networks; Riverbed Technology, Inc.; ZTE Corporation are attempting to increase market demand by investing in research and development operations.
Alcatel Lucent Enterprise SA (ALE International) is a leading provider of communications infrastructure solutions and services. The company's product offerings encompass communication systems, switches, contact centers and attendants, ecosystems integration, wireless local area network (LAN), phones, softphones and devices, communications management, and security, as well as network management and security. ALE International specializes in digital-age networking, business continuity, and digital-age communications solutions. The company's services include professional, support, training, customization, customer, and location services. ALE International caters to various sectors such as healthcare, hospitality, education, energy and utilities, digital government, transportation, and small and medium-sized businesses. With a global presence spanning Europe, the Middle East, Africa, Asia Pacific, and the Americas, ALE International is headquartered in Paris, Ile-de-France, France. In December 2022, ALE International entered into a collaboration with Auroz, a distributor providing solutions and services to systems integrators and technology resellers. Under this partnership, Auroz will extend its services to ALE's channel partners across Australia, offering the complete ALE portfolio of communication, networking, and cloud solutions.
May 2023: In May 2023, Cisco Systems Inc. revealed plans to establish core manufacturing capabilities in India, encompassing testing, development, and logistics, while also expanding in-house repair operations.
May 2023: In May 2023, Broadcom Inc. and Apple Inc. announced a significant partnership with a focus on the development and production of crucial 5G radio frequency components in the United States
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 361.4 Billion |
| Market Size 2023 | USD 426.2 Billion |
| Market Size 2032 | USD 778.9 Billion |
| Compound Annual Growth Rate (CAGR) | 7.98% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Equipment, Infrastructure Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | A10 Networks Alation Inc.; ALE International; Broadcom Inc.; Cisco Systems, Inc.; Dell Inc.; Hewlett Packard Enterprise Development LP; Huawei Technologies Co., Ltd.; Juniper Networks; Riverbed Technology, Inc.; ZTE Corporation |
| Key Market Opportunities | ·      Adoption of Next-Generation Networking Technologies |
| Key Market Dynamics | ·      Growing adoption of wireless devices |
Frequently Asked Questions (FAQ) :
The Enterprise Networking Market size was valued at USD 361.4 Billion in 2022.
The Enterprise Networking Market is projected to grow at a CAGR of 7.98% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are A10 Networks Alation Inc.; ALE International; Broadcom Inc.; Cisco Systems, Inc.; Dell Inc.; Hewlett Packard Enterprise Development LP; Huawei Technologies Co., Ltd.; Juniper Networks; Riverbed Technology, Inc.; ZTE Corporation
The Network Security segment dominated the market in 2022.
The Outsourced segment had the largest share of the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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