Dell'Oro Group's latest report forecasts the High End Router market to grow at a 4% CAGR, reaching $12.7 billion by 2029, driven by increasing demand for 400 Gbps and 800 Gbps Ethernet ports. “Bandwidth demand continues to rise, with routers supporting denser, more efficient networks to bridge the future bandwidth gap,” said Jimmy Yu, Vice President at Dell'Oro Group. Despite a 20% decline in 2024, the market will rebound, with cloud service providers leading the growth in High End Router purchases.

According to a recently published report by Dell’Oro Group, 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. “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.”

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 multi-system operators. Cloud service provider direct purchases of High End Routers is 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.