Enterprise Network Equipment Market

Enterprise Network Equipment Market Outlook (2025 to 2035)

The global enterprise network equipment market is expected to reach USD 179.7 billion by 2035, up from USD 72.3 billion in 2024. During the forecast period (2025 - 2035), the industry is projected to expand at a CAGR of 8.5%. Enterprise network equipment is vital for seamless data exchange, operational scalability, and secure connectivity across modern organizations.

With the rise of cloud adoption, hybrid work, and IoT integration, demand for durable switches, routers, and wireless access points is accelerating. Strategic investment in advanced network infrastructure directly enhances business agility, cybersecurity posture, and digital transformation outcomes, making it a cornerstone of enterprise IT evolution.

The enterprise network equipment market encompasses solutions that facilitate the transportation, communication, and protection of information within corporate IT infrastructures. These are routers, switches, WLANs, network security equipment and management software. As enterprises become increasingly interconnected systems, there is a growing need for a robust, fast, and secure network infrastructure.

The market is playing an essential role in supporting digital transformation, remote work, and cloud computing, where enterprises are driven by the need for high-reliability, scalable, and automated solutions. Network equipment is vital to any industry, whether it is the telecom and IT sector, the healthcare industry, or the retail business, because it is necessary to ensure the smooth operation of these industries.

This situation significantly increases the prospects for the enterprise network equipment market, which is expected to continue growing over the next decade. The proliferation of cloud services, the hybrid workforce, and the rise in cyber threats are driving enterprises to upgrade their networks. Innovative technologies, such as SD-WAN, AI-enhanced network performance management, and edge computing, will enter the mainstream and disrupt traditional enterprise connection strategies.

What drives the growing demand for enterprise network equipment in global digital transformation initiatives?

The increased digitalization of businesses, the security of communication on data, and the proliferation of connected devices fuel the industry. With the migration of businesses to the cloud and the adoption of teleworking platforms, there is an increasing demand for high-performance network infrastructure. Cybersecurity has become a significant concern, and therefore, high-level network protection tools have been acquired.

The emergence of big data and the Internet of Things (IoT), as well as the application of artificial intelligence (AI), also underscores the need for faster and more reliable networks. The use of flexible and scalable solutions that support distributed teams, enable smart operations, and provide 24/7 connectivity has become a strategic necessity for enterprises, and network modernization is a critical component of this process.

What are the key market trends currently shaping the Enterprise Network Equipment Market in 2025?

A set of main trends is transforming the enterprise network equipment market. Software-defined networking (SDN) and network functions virtualization (NFV) will enable faster and more cost-efficient infrastructure development. AI and machine learning are now being applied more to predictive maintenance, automatic responses, and traffic management.

A significant shift to cloud networks, which enable central oversight and improved visibility, is also emerging. Wi-Fi 6 and 5G private wireless cover a growing number of devices and bandwidth. In addition, security is being incorporated at all network layers, and Zero Trust models and secure access service edge (SASE) are gaining momentum rapidly.

What hinders the growth of the enterprise network equipment market despite rising digital transformation demands?

There are various restraints in the enterprise network equipment market despite its growth. Small and medium-sized enterprises may struggle to afford the high start-up costs associated with deployment and upgrades. Technical issues arise from the complexities of integrating new technologies into legacy infrastructure.

A lack of competency in managing and operating modern networks may hinder the rate of adoption. The changes in technology also make equipment obsolete.

In addition, there might be different regulatory norms in different regions, which may complicate product development and deployment strategies for international players and can delay the project schedules and raise compliance expenses.

Which regions are driving enterprise network equipment market growth, and how do their trends differ?

In regional terms, the enterprise network equipment market is variable. North America remains in the lead in terms of market share because it is an early adopter of advanced networking technologies, has a high level of enterprise IT spending, and is influenced by key networking vendors.

The market, particularly in East Asia, with countries such as China, Japan, and South Korea, is experiencing rapid growth, driven by intense investments in smart cities, industrial automation, and 5G infrastructure. The region has been able to build strong local manufacturing and technology capabilities, thereby enhancing regional self-reliance and driving innovation in networking hardware.

Western Europe, in the meantime, indicates a stable and continuously expanding market, particularly as businesses enthusiastically intensify their activities to modernize legacy systems and comply with emerging cybersecurity and GDPR requirements. It primarily focuses on the integration of automation, infrastructure, and energy efficiency with hybrid cloud networking systems.

Country-wise Outlook

Redevelopment Push and Climate Resilience Boost U.S. Enterprise Network Equipment Market

Such a market in the United States is on the rise due to reparative investments in buildings and a strict code of safety, as well as the increasing intensity of climate change events. Therefore, the regulatory scope such as National Fire Protection Association (NFPA 780) dictates that a lightning protection system (LPS) be furnished in critical infrastructure facilities, data facilities, and industrial complex.

Coupled with the latter, the grounding protection and surge technology is equally experiencing an added demand because of the increased manufacturing of EVs and the expansion of the renewable energy sector, including wind farms and solar plants. Smart monitoring systems and IoT-enabled surge protectors with diagnostics and predictive maintenance capabilities in real-time are also integrated into the systems of U.S. manufacturers, enabling them to guarantee non-stop operation and safety.

Energy Codes and Smart Building Surge Devices Drive German Enterprise Network Equipment Market

As the nation focuses intensely on the use of energy-efficient structures, green infrastructure, and top production standards, the German enterprise network equipment industry is slowly evolving. Lightning protection systems have a wide range of applications in commercial buildings, factories, and energy facilities. They are subject to the standards EN 62305 and the national building safety codes of their respective countries.

The retrofitting of the LPS in eco-friendly power plants, such as wind turbines and solar energy facilities, in Germany is of utmost importance, which is currently being recognized with the clean energy leadership. In the case of smart buildings, Industry 4.0 creates new opportunities for intelligent surge protection devices that will communicate with the building management systems.

Smart Infrastructure and Policy Reforms Drive China’s Enterprise Network Equipment Market

The market for enterprise network equipment in China is experiencing a boom, driven by government-led urbanization projects, infrastructure development for high-speed railways and airports, and the gradual establishment of 5G and IoT networks. In connection with plans such as Made in China 2025 and new infrastructure, the primary application of lightning protection is planned for smart cities, data centers, and EV charging stations.

The LPS is being adopted in the country, especially in areas where there is the threat of thunderstorms, which is enabled by GB 50057 and local codes of compliance. Additionally, alliances between the public and private sectors are also enhancing R&D in the areas of nanomaterials and smart-grounding technology, thereby making the systems more resilient and responsive.

Category-Wise Market Outlook

Network Security Equipment Gains Momentum as Cyber Threats Intensify and Compliance Mandates Bolster Demand Across Digital Infrastructure

The network security equipment type is experiencing the highest growth rate among other types of products due to the increasing number of cyberattacks and growing government regulations, which are supported by the rising demand for data protection. Companies are investing a lot in next-generation firewalls, intrusion detection, and unified threat management (UTM) devices to protect their digital infrastructure.

Demand has been additionally increased by the growth of cloud computing and remote working practices, where companies look to meet the need for secure access and data transfer across multiprocessor networks.

In addition, the BFSI and healthcare sectors, which deal with highly sensitive information, are on a drive to demand it based on its compliance with various regulations, such as GDPR and HIPAA.

SMEs Accelerate Network Modernization Amid Cloud Adoption and Infrastructure Overhaul

The firmly growing segment in terms of enterprise size is the Small & Medium Enterprises (SMEs). This is driven by the fact that they are embracing digital transformation strategies and cloud-based IT solutions, which require scalable and cost-effective networking infrastructure. Less progressive SME are moving towards investing in enterprise-level routers, switches, and security appliances to sustain their remote operation and e-commerce.

SMEs are capable of developing their network, which is sometimes as simple as straightforward construction (considered as one big zero in a new area). Large enterprises will most likely already have a longstanding infrastructure, which is why switching to newer and more integrated solutions takes much longer to implement.

Cloud-Based Deployment Accelerates Network Modernization with Scalable Infrastructure and Intelligent Integrations

When it comes to the deployment models, the Cloud-Based deployment is expanding at the leading rate due to its scalability, flexibility, and cost-effectiveness. The transition to working from home and in a hybrid work environment has facilitated cloud infrastructure dependency.

Cloud-based networking solutions provide a centralized point of management, enable faster software updates, and facilitate integration with modern technologies such as SD-WAN and artificial intelligence-driven analytics.

Additionally, cloud models offer flexible pricing based on subscription, which saves companies, especially SMEs and startups, from an initial capital outlay.

IT & Telecom Propel Network Resilience as 5G, Edge Computing, and Data-Centric Demands Reshape Digital Infrastructure

The enterprise network equipment market is rapidly growing, with IT & Telecom being the related end-use industry. This leg is always stretched to maintain large data flows, real-time communications, and face-growing cloud services. The drive of 5G infrastructures, edge computing and growing investments into data centers are broad contributors.

The ultra-reliable low-latency (URLL) services, available to the industry in the form of VoIP, video conferencing, and IoT device management, among others, require state-of-the-art routers, switches, and network security devices. IT & Telecom is at the leading edge of this market expansion since it adopted next-gen technologies early.

Competitive Analysis

Competitive Outlook: Enterprise Network Equipment Market

The enterprise network equipment market is a growing market due to an increase in demand for secure, high-speed connectivity, especially in sensitive areas such as telecommunications, industrial automation, and data centers.

Competitive strategies are influenced by a high degree of orientation towards sustainability, energy efficiency and adherence to international standards. The companies are expanding their product portfolios to include eco-friendly hardware, zero-trust security, and edge-ready solutions.

Sector-specific application customization, internationalization through collaboration, and regulatory framework changes are factors that are important for growth. The market is highly dynamic to increase the level of enterprise digitization by integrating Wi-Fi 6, 5G, and cloud-native architecture.

Key players in the enterprise network equipment industry include Cisco Systems, Hewlett-Packard Enterprise (HPE), Huawei Technologies, Juniper Networks, Arista Networks, Broadcom, Dell Technologies, VMware, Extreme Networks, Ciena, Ubiquiti Inc., Accton Technology, NETGEAR, Tejas Networks, and Sterlite Technologies.

Recent Development

• In June 2024, Hewlett-Packard Enterprise (HPE) expanded its networking solutions by launching the HPE Aruba Networking Enterprise Private 5 G. This addition enhances HPE's comprehensive private 5G and Wi-Fi offerings, delivering secure, high-speed connectivity tailored for enterprise environments. The solution integrates with HPE's GreenLake cloud platform, facilitating seamless deployment and management.
• In February 2024, Huawei introduced the Net5.5G Converged WAN solution at MWC Barcelona. This innovation aims to accelerate intelligent transformation across industries by providing secure WANs with simplified architecture, differentiated experience assurance, and intelligent operations and maintenance. It lays a solid foundation for intelligent and converged IP metro networks.

Fact.MR has provided detailed information about the price points of key manufacturers in the enterprise network equipment market, positioned across regions, including sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

The 2025 global enterprise network equipment industry report by Fact.MR compiled insights from 9,000 stakeholders across 28 countries, ensuring a minimum of 250 respondents per market. Respondents included two-thirds of end users and buyers, such as IT infrastructure heads, data center operators, network architects, and CIOs, and one-third were industry professionals, including supply chain experts, procurement managers, systems integrators, and telecom engineers.

The data, gathered between June 2024 and May 2025, reflected real-time shifts in technology adoption, procurement strategies, vendor selection patterns, risk perceptions, and investment priorities across the enterprise networking value chain. All responses were weighted proportionally to reflect regional market sizes and professional demographics, ensuring greater analytical precision.

The report analyzed insights from over 225 credible sources, including technical whitepapers, patent filings, vendor financial statements, regulatory disclosures, and peer-reviewed journals. Advanced statistical techniques, including multivariate regression, cluster analysis, and time-series forecasting, were employed to derive actionable insights.

Since 2018, Fact.MR has tracked technology transformations, customer preferences, product efficacy benchmarks, and innovation trends across the enterprise networking domain. This long-term research foundation cements the 2025 edition as a definitive resource for executives, suppliers, policymakers, and investors in the global enterprise network infrastructure ecosystem.

Segmentation of Enterprise Network Equipment Market Research

• By Product Type :

  • Routers
  • Switches
  • WLAN Equipment
  • Network Security Equipment
  • Network Management Tools
  • Others

• By Enterprise Size :

  • Small & Medium Enterprises (SMEs)
  • Large Enterprises

• By Deployment Model :

  • On-Premise
  • Cloud-Based
  • Hybrid

• By End-Use Industry :

  • IT & Telecom
  • BFSI (Banking, Financial Services, and Insurance)
  • Retail & E-Commerce
  • Healthcare
  • Manufacturing
  • Government & Public Sector
  • Education
  • Energy & Utilities
  • Transportation & Logistics

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa