Residential Routers Market

Global Residential Routers Market Size (2024 to 2032)

The global residential routers market was worth USD 11.36 billion in 2023. The global market is predicted to reach USD 12.39 billion in 2024 and 24.80 billion in 2032, with a CAGR of 9.06% during the forecast period.

A residential gateway is a small, consumer-grade router providing access between hosts on the local area network (LAN) to a vast area network (WAN) through a modem. The modem may or may not be integrated into the hardware of the residential gateway. The benefits of wired routers, such as more stable connection than wireless routers, are foreseen to promote this market demand.

Gigabit Ethernet was introduced in 1999 but gained popularity in 2010. With the increasing use of Wi-Fi-enabled devices and devices in homes, the need for networking is likely to expand beyond the capacity of the primary Wi-Fi router. Additionally, with an increase in the number of devices, bandwidth, and traffic will increase, which, if left unattended, can overload the router. Gigabit routers have become the most viable solution to solve this problem. To have a Gigabit Ethernet connection, the router and cable must support Gigabit Ethernet. The Gigabit Ethernet limit is 1 Gbit/s, but the speed ranges from 45 to 100 Mbit/s. Actual speed varies due to a few factors, such as cable quality, number of terminals, and amount of traffic.

MARKET DRIVERS

The growing attraction for home connectivity and offices will help drive the global residential router market during the forecast period.

A residential router is a type of network device. A small, high-power router provides access between hosts from the local area network (LAN) to the wide area network (WAN) through a modem. The growing adoption of the Internet and the high demand for connected devices are the main drivers of the global residential router market.

In recent years, there has been a significant increase in demand for connected devices, such as smartphones, smartwatches, and tablets. The residential router market will grow as these devices need to be connected to the internet for most of their functions. Also, in smart homes, all devices require an internet connection to function correctly. In the future, the demand for home connectivity will only increase, thus boosting the router market. Increased digitization will also help the market as the concept of digitization will not be successful without the Internet, and to connect all devices to the Internet, the router is a must. The new COVID-19 pandemic has crippled the world, affecting critical operations and causing industrial disasters.

There is a significant increase in demand for connected devices like smartphones, smartwatches, and tablets. Since these devices operate with the Internet for most of their functions, the residential router market is set to grow. Additionally, all devices will require an internet connection to function properly in smart homes. In addition, the demand for home connectivity will also increase, thus boosting the router market. The market for wired routers is also expected to grow, owing to the growing number of fixed broadband subscribers. The Broadband Commission for Sustainable Development said that the number of fixed broadband subscribers increased from 884 million in 2016 to 1 billion in 2017.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Residential Routers Market Analysis By Wi-Fi Band Type

The growing rate of smart home adoption, with 30 million homes in the US, is also helping the wireless router market. Several state governments are boosting the smart home adoption rate. In 2016, the US government launched a program, "ConnectALL," to help Americans of all income levels use online tools and services to get the most out of the Internet. Thus, this initiative promotes market penetration of fixed broadband services.

Altice Group, a European telecommunications giant, acquired Suddenlink Communications to enter the US market and rebranded Altice USA. Additionally, Frontier acquired Verizon's Wireline assets in three western states for nearly USD 10.5 billion.

REGIONAL ANALYSIS

The global residential routers market is divided based on geography into North America, South America, Europe, Latin America, the Middle East, and Africa. North America and Europe are the crucial regions in this business, which are supposed to contribute a prominent portion in the coming years. Asia-Pacific will hold the most substantial growth rate over the outlook period. The region has a high population density with an increase in the disposable income of the population. Developing economies like India and China are expected to drive the region's market. The purchasing power of the people living in these countries has increased in recent years. Also, with the arrival of smart cities and homes in these countries, the market for residential routers will increase.

KEY PARTICIPANTS IN THE GLOBAL RESIDENTIAL ROUTERS MARKET

Netgear Inc. (US), D-Link Corporation (Taiwan), TP-Link Technologies Co. Ltd (China), Linksys Group (US), TRENDnet, Inc. (US), Synology Inc. (Taiwan), AsusTek Computer Inc. (Taiwan), Google Inc. (United States), Nokia Networks (Finland), Xiaomi Inc. (China) and Tenda (United States), FAST (US) and Buffalo (US) are some of the leading players in the global market.

RECENT HAPPENINGS IN THE GLOBAL RESIDENTIAL ROUTERS MARKET

• In March 2019, Netgear launched a new router for gamers, showing that the network company covers all the bases for all gamers. In particular, the new Nighthawk Pro Gaming XR300 WiFi Router aims to reduce lag for console gamers. The router allows the user to reduce the lag through geographic filtering. Users can improve performance by allocating bandwidth to specific applications, such as shows or games.

• In January 2019, D-Link announced that a new 5G NR router will hit the market at the end of 2019, which will only need electricity and a SIM card and eliminate the cable. Instead of connecting the D-Link DWR-2010 5G NR router to a prehistoric coaxial cable, it will simply absorb broadband internet from frequencies below 6GHz and mmWave, which 5G will depend on, and distribute it to all connected devices. Use the proven and already designed local Wi-Fi network at home to connect.

• In February 2018, Nokia implemented several developments to its home Wi-Fi solution that improved its performance and simplified networks. The new Wi-Fi solution has expanded Nokia's portfolio with beacons and mesh gateways, offering service providers a new home Wi-Fi portal.

• In March 2018, Nokia completed the purchase of Unium, a software company based in Seattle that specializes in addressing wireless network issues for residential and mission-critical Wi-Fi applications.

DETAILED SEGMENTATION OF THE GLOBAL RESIDENTIAL ROUTERS MARKET INCLUDED IN THIS REPORT

This research report on the global residential routers market is segmented and sub-segmented based on the type of connectivity, type of port, wi-fi band type, and region.

By Type of Connectivity

• Wired
• Wireless

By Type of Port

• Gigabit
• Fast Ethernet

By Wi-Fi Band Type

• Single band
• Dual band
• Tri band

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus