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Add to CartEnterprise Network Equipment Market
By Component;
Hardware, Software, and ServicesBy Connectivity;
2G/3G, 4G LTE, and 5GBy Equipment;
Routers, Ethernet Switches, and WLAN ControllersBy Vertical;
BFSI, Healthcare & Lifesciences, Communication, Media & Services, Retail, Manufacturing, Energy & Utility, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Enterprise Network Equipment Market Overview
Enterprise Network Equipment Market (USD Million)
Enterprise Network Equipment Market was valued at USD 13,161.43 million in the year 2024. The size of this market is expected to increase to USD 21,978.05 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.6%.
Enterprise Network Equipment Market
*Market size in USD million
CAGR 7.6 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 7.6 % |
| Market Size (2024) | USD 13,161.43 Million |
| Market Size (2031) | USD 21,978.05 Million |
| Market Concentration | Medium |
| Report Pages | 313 |
Major Players
- 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
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Enterprise Network Equipment Market
Fragmented - Highly competitive market without dominant players
The Enterprise Network Equipment Market is steadily growing as companies seek faster, more reliable connectivity to handle expanding digital operations. With around 65% of organizations prioritizing network upgrades, the push for modern, high-performance systems is reshaping enterprise IT strategies. This trend highlights the essential role of network equipment in enabling business continuity.
Cloud and Virtual Network Integration Accelerating Demand
An increasing number of enterprises are adopting cloud platforms and virtualized environments, reshaping traditional IT infrastructure. About 58% of businesses now rely on software-defined networking components, accelerating the demand for adaptive and programmable network gear. This evolution is crucial for supporting dynamic, service-driven IT ecosystems.
Security-Centric Hardware Gains Traction
Security remains a top consideration in network planning, with over 50% of new deployments emphasizing hardware-embedded protection. Enterprises are turning to integrated systems that include encrypted traffic handling, advanced threat detection, and seamless access controls. This movement is shaping a more resilient and secure digital environment.
Automation and 5G Driving Future Readiness
The shift toward automated operations and 5G adoption is setting the stage for the next growth phase. With nearly 40% of enterprises deploying automation for network configuration and performance tuning, modern equipment is becoming essential. Integrating 5G support is also a strategic focus to ensure long-term competitiveness.
Enterprise Network Equipment Market Recent Developments
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Key technological advancements include the rise of Software,Defined Networking (SDN), which enhances network efficiency by decoupling control and data planes, making networks more adaptable. This shift enables more effective management of complex network systems.
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The collaboration between PLDT and Cisco in 2022 to deploy a 5G standalone service platform is a notable development. This initiative enhances enterprise network capabilities by providing a network sandbox for businesses to develop digital use cases.
Enterprise Network Equipment Market Segment Analysis
In this report, the Enterprise Network Equipment Market has been segmented by Component, Connectivity, Equipment, Vertical, and Geography.
Enterprise Network Equipment Market, Segmentation by Component
The Enterprise Network Equipment Market has been segmented by Component into Hardware, Software, and Services.
Hardware
The hardware segment dominates the enterprise network equipment market, contributing to over 45% of the total share. It includes essential components like routers, switches, and access points that form the backbone of network infrastructure in enterprise environments.
Software
The software segment accounts for approximately 30% of the market, driven by the growing adoption of network management and virtualization solutions. It plays a crucial role in ensuring network performance, security, and scalability.
Services
Comprising nearly 25% of the market, the services segment includes installation, maintenance, consulting, and support. As enterprises seek to streamline operations, demand for managed and professional services continues to grow steadily.
Enterprise Network Equipment Market, Segmentation by Connectivity
The Enterprise Network Equipment Market has been segmented by Connectivity into 2G/3G, 4G LTE, and 5G
2G/3G
The 2G/3G segment holds a declining share of around 10% in the enterprise network equipment market. Although still used in legacy systems, its relevance is fading with the shift toward more advanced and high-speed networks.
4G LTE
Accounting for approximately 40% of the market, 4G LTE remains a widely adopted connectivity option. It offers reliable and high-bandwidth communication, supporting a range of enterprise applications across diverse sectors.
5G
The 5G segment is experiencing rapid growth and currently captures over 50% of the market share. Its ultra-low latency and high-speed data transmission make it ideal for supporting modern enterprise demands like IoT, AI-driven analytics, and cloud computing.
Enterprise Network Equipment Market, Segmentation by Equipment
The Enterprise Network Equipment Market has been segmented by Equipment into Routers, Ethernet Switches, and WLAN Controllers
Routers
Routers make up nearly 35% of the enterprise network equipment market, playing a vital role in directing data traffic between networks. They are essential for enabling secure and efficient communication within enterprise infrastructures.
Ethernet Switches
Ethernet switches hold the largest share at around 45%, serving as the core of LAN connectivity. These devices facilitate seamless data transfer between multiple devices, ensuring network speed and reliability.
WLAN Controllers
WLAN controllers contribute approximately 20% to the market. They help enterprises manage multiple wireless access points, optimizing network performance, security, and scalability in wireless environments.
Enterprise Network Equipment Market, Segmentation by Vertical
The Enterprise Network Equipment Market has been segmented by Vertical into BFSI, Healthcare & Lifesciences, Communication, Media & Services, Retail, Manufacturing, Energy & Utility, and Others
BFSI
The BFSI sector accounts for around 20% of the enterprise network equipment market, driven by the need for secure, high-speed, and uninterrupted connectivity. Financial institutions heavily invest in network security and data infrastructure.
Healthcare & Lifesciences
This vertical holds close to 15% of the market, fueled by increasing demand for digital health systems, telemedicine, and connected medical devices. Robust network equipment ensures reliable data exchange and patient care.
Communication
The communication vertical captures nearly 10% of the enterprise network equipment market. It demands high-capacity and low-latency networks to support real-time data exchange, unified communications, and collaboration platforms.
Media & Services
The media & services segment accounts for approximately 8% of the enterprise network equipment market. This vertical relies on high-speed, scalable networks to enable content delivery, cloud services, and media streaming with minimal disruption.
Retail
The retail segment makes up about 12% of the market. Growing adoption of POS systems, digital signage, and connected inventory management drives demand for reliable and scalable networking solutions.
Manufacturing
Manufacturing contributes roughly 10%, as smart factories and Industry 4.0 adoption rely on high-performance networks to ensure automation, monitoring, and machine-to-machine communication.
Energy & Utility
Holding around 8% of the market, this segment depends on real-time data collection and remote monitoring. Network equipment enables efficient grid management and field operations.
Others
The remaining 17% includes various sectors like education, logistics, and public services. These industries are gradually adopting advanced network infrastructure for digital transformation.
Enterprise Network Equipment Market, Segmentation by Geography
In this report, the Enterprise Network Equipment Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Regions and Countries Analyzed in this Report
Enterprise Network Equipment Market Share (%), by Geographical Region
North America
North America holds the largest share at around 35% of the enterprise network equipment market. The region benefits from strong digital infrastructure, early technology adoption, and high investment in cloud and cybersecurity solutions.
Europe
Europe accounts for nearly 25% of the market, with increasing focus on data compliance, enterprise digitization, and robust demand for secure network solutions across industries.
Asia Pacific
Asia Pacific is a rapidly growing region with over 20% market share. The rise of smart cities, manufacturing hubs, and digital enterprises drives adoption of advanced network equipment.
Middle East and Africa
This region contributes approximately 10%, with growing initiatives in infrastructure development and digital transformation supporting network upgrades across enterprises.
Latin America
Latin America holds about 10% of the market. Efforts to modernize IT infrastructure in sectors like banking, telecom, and retail are steadily boosting demand for enterprise networking solutions.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Enterprise Network Equipment Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
| Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
|---|---|---|---|---|---|
| Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
| Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
| Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Growing demand for secure connectivity infrastructure
- Rapid expansion of cloud-based enterprise services
- Increasing number of connected IoT devices
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Rising emphasis on unified communication systems - The increasing reliance on unified communication systems is driving a transformative shift in enterprise networking. Organizations are integrating tools such as VoIP, video conferencing, and real-time messaging to streamline operations. This demand creates an urgent need for network equipment that supports high bandwidth, low latency, and seamless interoperability.
With the rise of hybrid and remote workforces, businesses seek centralized communication infrastructures to maintain productivity across locations. These solutions reduce communication delays, improve collaboration, and facilitate real-time decision-making. As a result, companies are investing in advanced routers, switches, and network controllers optimized for voice and video traffic.
unified communication platforms require robust network infrastructure that supports dynamic scalability and end-to-end encryption. Vendors in the enterprise network equipment space are responding by offering all-in-one integrated solutions with enhanced QoS features, advanced traffic routing, and automated network configuration.
Such systems not only enhance productivity but also reduce operational costs by eliminating communication silos. The growing acceptance of cloud-based UCaaS platforms further accelerates hardware upgrades, positioning unified communications as a core driver in network modernization strategies.
Restraints
- High cost of advanced network hardware
- Complex integration with legacy systems
- Short lifecycle of networking technologies
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Vulnerabilities to evolving cyber threats - The enterprise network equipment market is increasingly challenged by rising cybersecurity risks. As businesses expand digital footprints and adopt connected devices, the attack surface widens, exposing infrastructure to malware, phishing, and zero-day exploits. Outdated or misconfigured network devices become critical entry points for attackers.
Modern threats target firmware and routing protocols within network switches, routers, and firewalls, leading to data breaches and operational disruptions. Enterprises hesitate to upgrade or expand infrastructure due to concerns over device vulnerabilities and compliance lapses, especially in highly regulated sectors like banking and healthcare.
Despite advancements in security protocols, network hardware remains susceptible to backdoors and firmware flaws. The cost of implementing consistent threat detection, response systems, and firmware patch management across distributed infrastructure limits adoption of new systems in many small and mid-sized enterprises.
These challenges hinder aggressive network modernization strategies, forcing enterprises to retain older equipment or deploy expensive, security-hardened alternatives. The persistent nature of advanced persistent threats (APTs) and state-sponsored cyberattacks places added pressure on vendors to integrate proactive security features into network hardware design.
Opportunities
- Adoption of AI in network management
- 5G and edge computing enablement
- Growth in remote work infrastructure
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Expansion of SD-WAN and virtualization solutions - The rapid adoption of Software-Defined Wide Area Networks (SD-WAN) and virtualization technologies is creating new opportunities in the enterprise network equipment market. These solutions allow businesses to optimize bandwidth, route traffic intelligently, and achieve centralized network visibility at reduced costs.
SD-WAN eliminates reliance on expensive MPLS networks by leveraging commodity internet with secure overlays. As organizations pursue digital transformation, they demand agile, scalable, and application-aware networks that support cloud-based workloads, remote work, and edge computing. This trend accelerates the need for SD-WAN-ready hardware and software platforms.
Network virtualization, including network function virtualization (NFV) and virtual routers, reduces dependency on proprietary hardware. Enterprises are replacing traditional appliances with virtual equivalents hosted on COTS servers. This approach improves flexibility and enables rapid deployment of services across global locations.
The convergence of SD-WAN with other emerging technologies such as AI-driven network management and zero trust architectures unlocks further innovation in enterprise infrastructure. Vendors who offer programmable, cloud-native, and secure-by-design hardware stand to benefit significantly from this evolution in networking strategies.
Competitive Landscape Analysis
Key players in Enterprise Network Equipment Market include:
- 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
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Connectivity
- Market Snapshot, By Equipment
- Market Snapshot, By Vertical
- Market Snapshot, By Region
- Enterprise Network Equipment Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Growing demand for secure connectivity infrastructure
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Rapid expansion of cloud-based enterprise services
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Increasing number of connected IoT devices
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Rising emphasis on unified communication systems
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- Restraints
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High cost of advanced network hardware
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Complex integration with legacy systems
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Short lifecycle of networking technologies
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Vulnerabilities to evolving cyber threats
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- Opportunities
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Adoption of AI in network management
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5G and edge computing enablement
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Growth in remote work infrastructure
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Expansion of SD-WAN and virtualization solution
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Enterprise Network Equipment Market, By Component, 2021 - 2031 (USD Million)
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Hardware
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Software
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Services
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- Enterprise Network Equipment Market, By Connectivity, 2021 - 2031 (USD Million)
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2G/3G
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4G LTE
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5G
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- Enterprise Network Equipment Market, By Equipment, 2021 - 2031 (USD Million)
- Routers
- Ethernet Switches
- WLAN Controllers
- Enterprise Network Equipment Market, By Vertical, 2021 - 2031 (USD Million)
- BFSI
- Healthcare & Lifesciences
- Communication
- Media & Services
- Retail
- Manufacturing
- Energy & Utility
- Others
- Enterprise Network Equipment Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Enterprise Network Equipment Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- 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
- Company Profiles
- Analyst Views
- Future Outlook of the Market