Robust Adoption of Fiber Optic Cabling, and Focus on Deployment of 5G Technology Propelling the Demand for Networking Equipment in the Country

Press Release

Japan networking equipment market is projected to reach $7,396.3 million by 2024, progressing at a significant growth rate during the forecast period. Heavy requirement of high-speed internet in automotive, manufacturing, and media & entertainment, e-commerce and massive social media influence are some of the key factors driving the growth of the networking equipment market in the country.

In 2018, Tokyo metropolitan area comprised of 109 unique data center colocation facilities, while Osaka metropolitan area consisted of 29 unique data center colocation facilities. Thus, owing to rising number of data centers in the country, the market for switches category is expected to rise.

Based on type, router market held the largest share in the networking equipment market in Japan. However, the market potential for switches, access points, and security devices is projected to be significantly high during the forecast period. Of the types of switches, unmanaged switches held larger share in 2018.

However, the market for managed switches is expected to witness a rapid growth in Japan, during the forecast period. This is mainly attributed to the growing data center market, especially in Tokyo and Osaka.

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Wired modem accounted for a larger market share, when compared to wireless modems in 2018. This is attributed to the existing deployment of LAN cables in IT, BFSI, and government facilities. This has increased the requirement of strong internet connectivity, thereby forecasting a rapid growth in the networking equipment market in the coming years.

Networking Equipment Market Segmentation

Market Segmentation by Type

  • Router
    • By type
      • Wired
      • Wireless
    • By maximum speed
      • 150 Mbps
      • 300 Mbps
      • 450 Mbps
      • 600 Mbps
      • Above 600 Mbps