Edge Routers and Gateways to Reach Revenues of $2.0 billion by 2025

Crozet, Virginia: We are on the edge of a revolution during which latency-sensitive traffic will become ubiquitous. Edge computing presents a way to deal with this latency, running such traffic on a dedicated network all its own. According to a newly issued report from industry analyst firm CIR, edge computing routers and gateways for such networks will generate $2.0 billion by 2025.

Edge routers are concerned with quality of service (QoS), security and access efficiency rather than the just the raw speed supplied by core routers.  The report describes several different kinds of edge router including subscriber edge routers, label edge routers, branch routers and inter-provider border routers. Edge gateways are a special kind of router dealing with the protocols of particular kinds of networks: IoT networks, etc.

About the Report 

The goal of CIR’s report is to identify the opportunities for edge routers and gateways and to quantify theses opportunities in terms of both revenues and volume shipments from 2021 to 2025. The report also discusses how the edge router and gateway market is distributed geographically.

Specifically, the new CIR report, “Router and Gateway Markets: 2020-2025” discusses how new applications are driving the need for edge routers and gateways.  Specifically, the market drivers discussed are Internet-of-Things, factory networks, autonomous vehicles, networked kiosks and AI.  This report also contains strategic profiles of leading vendors and startups active in edge computing space.  Among the companies profiled are Advantech, Cisco, Dell, HPE/DXC, InHand, Moxa, Juniper, Microsoft, Nokia and Ubiquiti.

This report is one of six market studies that CIR is producing in the edge computing space.  The other volumes in this series cover edge servers, edge computing software, edge network security, edge computing services and edge chips/processors. “These CIR’s reports will show our clients where the new edge networks can generate new business revenue for hardware firms, software companies and service providers,” says Lawrence Gasman, President of CIR.

From the Report

  • Edge gateway revenues will increase to $860 million by 2025 as standardized environments for latency-sensitive networking become dominant. We think that of particular importance will be industrial networks (including IIoT) used in automotive manufacturing, the oil and gas industry and even farming. In some cases low latency may be required to achieve effective levels of manufacturing or sufficient health and safety.  In a different context, edge computing networks be able support autonomous vehicles accessing remote databases in split seconds be able to exchange critical data on weather, road conditions, detours and hazards.  Good latency performance is therefore essential and, given the safety considerations implicit in vehicle control, good latency performance can be a matter of life and death
  • Edge networks were built for some time using conventional routing gear.  What has changed, however, is that many of the leading vendors in this space are designing and branding their routing and gateway products specifically for enterprise edge computing.  Meanwhile, service providers who worry primarily about the costs of gateways and can supply their own support opt for lower cost white box edge gateways and products. Also, because white boxes are less proprietary than branded routers, the white box approach may also be easier to customize.
  • Eventually router and gateway functionality will merge into a single box. Standard “edge routers” will embed popular gateway functionality—this being the result of the increasing capabilities of edge chips. Such hybrid products will become common for residential and small businesses. However, for carriers and hyperscale edge networks, edge gateways will remain as separate boxes with sophisticated processing, management and protocol conversion capabilities.

About CIR

Communications Industry Researchers (CIR) has published hype-free industry analysis for the optical networking and photonics networks for more than 25 years. Our reports provide informed and reasoned market forecasts and industry analysis to a global roster of companies.

Visit http://www.cir-inc.com for a full listing of CIR’s reports and other services.

Contact:

CIR Inc
info@cir-inc.com
(804) 972-1043

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