400 Gbps and 800 Gbps Ethernet Demand Drives Market Growth
REDWOOD CITY, Calif. – January 28, 2025 – According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, the High End Router market is forecast to grow at a 4 percent compounded annual growth rate (CAGR) for the next five years to $12.7 billion by 2029. The majority of market revenue will be driven by 400 Gbps and 800 Gbps Ethernet port shipments.
“Our long-term view of the routing market remains positive, especially for High End Routers,” stated Jimmy Yu, Vice President at Dell’Oro Group. “At the end of the day, bandwidth demand continues to increase. There are of course times when the market contracts when network supply exceeds current needs, like it did last year in 2024. But overall, demand for more bandwidth has always gone up and we do not see that changing any time soon. This brings greater need for denser, more efficient networks, especially routers that have 400 Gbps and 800 Gbps ports to fill the future bandwidth gap,” added Yu.
Additional highlights from the Service Provider Router and Switch 5-Year January 2025 Forecast Report:
- The Total Router market, composed of High End Routers and Aggregation Switches, is expected to decline nearly 20 percent in 2024, establishing a new baseline for future growth starting in 2025.
- Demand from cloud service providers is projected to grow at a higher rate than telecom and cable MSOs. Cloud service provider direct purchases of High End Routers are forecast to grow at a 9 percent CAGR.
- 400 Gbps and 800 Gbps Ethernet port shipments are forecast to grow at a 30 percent CAGR, contributing nearly 65 percent of the High End Router market revenue by 2029.
The Dell’Oro Group Service Provider Router & Switch 5-Year Forecast Report offers complete, in-depth coverage of the Service Provider Router and Switch market for future current and historical periods. The report includes qualitative analysis and detailed statistics for manufacturing revenue by region, customer type and use cases, average selling prices, and unit and port shipments. To purchase this report, please contact us by email at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.
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