GLOBAL WIRELESS ROUTER MARKET
Wireless routers, also known as WiFi routers, are hardwares used usually at homes and workplaces to get access to the internet/WiFi. It connects the local area network to the wide area network.
This technology has seen improvement since its inception and today provides more bandwidth than ever before and reduces the need for extensive wiring which was required in the past. It also helps several users access the internet through one point which earlier was not feasible. It allows flexibility and mobility during work which is much needed in the modern times.
GLOBAL WIRELESS ROUTER MARKET DRIVERS
In today’s world of technology, the following factors are helping the wireless router market to grow.
- The demand for faster internet due to which standards of routers are changing at a fast pace.
- The increase in the range of wireless networks provided by network providers.
- The rise in the number of connected devices due to higher demand for connectivity and innovation being brought about by the different players in the market. The concept of the Internet of things being implemented is also giving a boost to this sector.
- Smartphones have become increasingly affordable, especially in developing nations and the price at which the internet is accessible makes many people take advantage of this technology.
- Government bodies in different parts of the world have recognized that WiFi has become a necessity and are trying to build good infrastructure facilities to provide uninterrupted network connection to users. “Development of Digital Convergence Programme” in Taiwan, “The Next Generation Broadband Network” by Singapore and “Broadband China” are a few government initiatives which have helped the market grow.
- The growth of the telecommunication industry is also driving the market.
GLOBAL WIRELESS ROUTER MARKETCHALLENGES
A few barriers to growth for this market are:
- There is a shortage of human labour which is required to maintain the quality of the internet services.
- Cyber security is another major concern for the end users since access to the internet is easy and instances of hacking are not uncommon.
GLOBAL WIRELESS ROUTER MARKET SEGMENTATION
Wireless Router Market – By Standard
Wireless Router Market – By Band
- Single Band
- Dual band
- Tri Band
Out of the three, the most commonly used these days is Dual band. Tri band is yet to gain popularity in many parts of the world.
Wireless Router Market – By Application
The different places where WiFi is used are:
Commercial applications of wireless routers are projected to grow in the forecasted period owing to the increase in commercial infrastructure, especially in developing nations. Different places such as shopping malls, hotels, restaurants, recreation places as well as offices offer Wifi services. While most of these places use an Open Wifi system, in some places a price may be charged for these services.
During the coronavirus pandemic, the household segment was the most dominant as work from home and online education model was adopted. Cisco is one such company that has taken advantage of this situation and made every move keeping in mind the needs of the customer.
The difference between the household and commercial segment is that their preferences while choosing a router are different. While for households the main factor is speed, cost of the service and quality of the service, the commercial segment looks at more factors. The commercial segment looks at security, scalability and the support that these internet routers can provide with.
Wireless Router Market – By End-user
The types of end users are:
The indoor market has more potential than the outdoor market due to the need for internet in every house and office, adoption of more connected devices with higher capabilities and many machine to machine applications such as video surveillance, health monitoring,etc.
Wireless Router Market – By Geography
The regional segmentation for the market is as follows:
- North America
- Asia-Pacific (APAC)
- Middle East & Africa
- . Saudi Arabia
- South Africa
- South America
North America is the most prominent market for wireless internet routers. This is mainly due to the presence of key players such as Cisco and D Link in the region and people being technologically advanced. The adoption of the concept of smart homes where all devices are connected is appealing for the consumers in North America and that’s why high speed wireless routers may be demanded to make this happen. However, most households in North America already have wireless routers due to which the growth might be limited in this region.
The Asia Pacific Region can also be expected to witness growth at a good pace due to the improvement in the technological infrastructure in the developing countries of this region. The Internet is to become more accessible and affordable for everyone. The Government is also expected to help in higher internet penetration.
The market is highly competitive and there are a few dominant players.Some of the players in the market are:
- Cisco Systems, Inc
- Shenzhen Tenda Technology Co. Ltd
- TP-Link Technologies Co. Ltd
- Belkin International, Inc
- D-Link Corporation
- Edimax Technology Co., Ltd
- Huawei Technologies Co., Ltd
- Netgear Inc
- ASUSTeK Computer Inc
The companies are adopting different tactics to grow in the market such as acquisitions and research and development. Some noteworthy developments by the above companies in the past are –
- D link’s ultra Wifi services for faster internet for more devices at home
- Netgear came up with security features to detect viruses and spyware and ASUS developed a powerful router for gaming purposes.
The Institute of Electrical and Electronics Engineers set the standards for the bytes and encryption. Though it is not mandatory to comply by these standards, companies do follow these standards for a better share in the market.
The standards that have been set by them in the past are:
- 802.11a – This is an old standard. However, this is still being used in a few devices.
- 802.11g- This is the most well known and commonly used standard today as it is compatible with most networks. This standard prescribes a speed of 54 Mbps and a frequency of 2.4 GHz.
- 802.11n- This is the fastest prescribed standard. The speed range for this is 100-600 mbps with a frequency of 2.4 GHz and 5 GHz.