The High End Router and Aggregation Switch equipment market is projected to reach $19 billion in revenue by 2030, according to a newly published report by Dell’Oro Group. The primary growth driver over the next five years is the buildout of AI infrastructure.
“The market dynamics surrounding routers are changing. The biggest change is that router demand over the next five years will be increasingly influenced by data center connectivity and less by telecom infrastructure,” stated Jimmy Yu, Vice President at Dell’Oro Group.
“The outlook for the High End Router market has been revised upward, fueled by increased demand for capacity, cloud connectivity, and data center interconnect (DCI). The largest upward revision is for Core Routers, driven by their use in scale-across DCI. Additionally, demand for Edge Routers is anticipated to surpass initial estimates, supported by AI growth. However, challenges remain in the telecom sector as the 5G rollout winds down,” continued Yu.
Additional highlights from the Service Provider Router and Switch 5-Year July 2026 Forecast Report:
- Edge Router and Aggregation Switch revenue for mobile backhaul is expected to be relatively flat for the next four years due to the slowdown in 5G deployment. However, by 2030, demand is expected to increase as communication service providers begin deploying 6G radios and upgrading their networks to deliver higher speeds and enhanced services.
- The expansion of AI infrastructure is creating router demand across most regions, particularly in North America, which hosts the leading cloud providers and most new data center projects. Global spending on High End Routers by cloud providers is expected to increase at a 16 percent compounded annual growth rate (CAGR).
