The global network equipment market size was estimated at USD 144.7 billion in 2022 and is projected to reach USD 190.5 billion by 2030, growing at a CAGR of 3.7% from 2023 to 2030.A key driver of this growth is the rising deployment of Internet of Things (IoT)-enabled devices across consumer, commercial, and industrial infrastructure, which increases the demand for robust and reliable network equipment.

Network equipment comprises all the components necessary to establish and maintain network infrastructure, including hardware, software, and related services. The advent of 5G technology is further accelerating the adoption of connected devices across organizations, allowing businesses to collect, analyze, and leverage data more effectively for decision-making and operational efficiency.

The market is also positively influenced by the growing penetration of smart and connected devices, as well as the trend of enterprise customers upgrading their network infrastructure to improve security and facilitate faster, more efficient data exchange. Many organizations are investing heavily in creating smart office environments by integrating advanced technologies such as Machine Learning (ML), Augmented and Virtual Reality (AR/VR), and edge computing, which further drives the demand for modern network equipment.

In addition, telecom operators and service providers are significantly increasing investments in network infrastructure and solutions, contributing to market expansion. Companies like Cisco Systems, Inc. and Telefonaktiebolaget LM Ericsson are introducing advanced solutions to implement new equipment infrastructure or upgrade existing networks, meeting the growing demand for high-speed data capacity among businesses and consumers. For instance, in January 2022, Cisco Systems, Inc. expanded its enterprise-grade switching capabilities to secure and modernize critical infrastructure in industrial environments. Initiatives like these are expected to propel the growth of the global network equipment market in the coming years.

Key Market Trends & Insights:

• The Asia Pacific region dominated the global network equipment market in 2022, accounting for over 35% of total revenue. This leadership position is attributed to the region’s rapid adoption of IoT-enabled devices, 5G infrastructure rollout, and strong investment in smart technologies across industries and urban infrastructure. The growing number of connected devices, expanding enterprise networks, and increasing focus on digital transformation in countries such as China, India, Japan, and South Korea have collectively reinforced the region’s dominance in the market.

• In the U.S., the network equipment market is projected to register a significant CAGR over the forecast period, driven by increasing investments in modern network infrastructure, enterprise digitalization, and upgrades to support high-speed data connectivity and cloud-based services. The country’s strong emphasis on innovation and advanced network deployments is expected to propel market growth steadily.

• By component, the hardware segment dominated the market, holding a 57% share in 2022. Hardware remains the backbone of network infrastructure, encompassing switches, routers, servers, and other physical equipment required for data transmission and connectivity. The high demand for robust and scalable network infrastructure in enterprises, telecom operators, and industrial applications continues to reinforce hardware dominance.

• By connection type, the 4G LTE segment held the largest share of 72% in 2022, reflecting widespread adoption of 4G networks for mobile communication, internet access, and enterprise connectivity. While 5G adoption is increasing, 4G LTE remains the primary technology for large-scale connectivity due to its maturity, coverage, and reliability.

• By network type, the public network segment dominated the market, accounting for a 67% share in 2022. Public networks are widely used by telecom operators, enterprises, and government organizations to provide broadband connectivity, mobile services, and cloud-based solutions, supporting large-scale data transmission and communication needs. The dominance of public networks is reinforced by their accessibility, cost-effectiveness, and ability to support a growing number of connected devices globally.

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Market Size & Forecast:

• 2022 Market Size: USD 144.7 Billion

• 2030 Projected Market Size: USD 190.5 Billion

• CAGR (2023-2030): 3.7%

• Asia Pacific: Largest market in 2022

Key Companies & Market Share Insights:

Key players in the global network equipment market include Cisco Systems, Inc., Huawei Technologies Co. Ltd., Nokia Corporation, Telefonaktiebolaget LM Ericsson, Hewlett Packard Enterprise Company, and Samsung Electronics Co., Ltd. These leading companies employ a variety of strategies to maintain and strengthen their market position, including mergers and acquisitions, strategic partnerships, and the launch of new products and solutions.

For example, in April 2022, Ericsson collaborated with Turkcell to support the digitalization of industries using Ericsson’s Private Network technology. As part of this partnership, Ericsson provided a dedicated, on-premises Private Network solution, which enabled Turkcell to identify and analyze potential use cases across different industrial sectors. This initiative was aimed at exploring new business opportunities, improving operational efficiency, and demonstrating the practical applications of advanced network solutions in enterprise and industrial environments.

Such collaborations, technological innovations, and strategic initiatives are critical for these companies to stay competitive in the rapidly evolving network equipment market, as they enable them to meet the growing demand for high-speed connectivity, smart infrastructure, and IoT-enabled solutions across multiple regions and industries.

Key Players

• Telefonaktiebolaget LM Ericsson

• Nokia Corporation

• Samsung Electronics Co., Ltd.

• ZTE Corporation

• Juniper Networks, Inc.

• Huawei Technologies Co., Ltd.

• Cisco Systems, Inc.

• Hewlett Packard Enterprise Development LP

• Broadcom

• ALE International (Alcatel-Lucent)

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Conclusion:

The global network equipment market is expected to grow steadily through the forecast period as demand increases for connected devices, IoT enabled infrastructure, and advanced communication technologies. Growth is supported by investments from telecom operators and enterprises in modernizing and expanding network infrastructure, the rollout of 5G services, and the continued integration of smart technologies across industries. Market expansion reflects the ongoing need for reliable, high speed connectivity in both commercial and industrial applications.