Investments In Smart Cities Will Aid The Bridges, Gateways, And Routers Market Growth
The bridges, gateways and routers market is expected to be aided by rapid growth in investments in smart city projects in many countries globally. Smart city technologies use information and communication technologies to efficiently manage and operate urban services including transportation systems, water supply, and law and order. These technologies are enabled through Cyber-Physical Systems (CPS), Internet of Things (IoT), Wireless Sensor Networks (WSNs), Cloud Computing, and Unmanned Aerial Vehicles (UAVs). Efficient networking and communication protocol is required for the proper functioning of all these technologies, and for these, bridges, gateways and routers are involved. Smart city technologies are integrated with electrical and electronic components, thereby benefitting the companies operating in this market. In 2018, APG Algemene Pensioen Groep N.V. announced an investment of €250 million in “Smart City Infrastructure Fund,” for the development of smart city projects across North America, Europe, Australia, and other major urban areas in the world. The concept of smart cities is becoming more popular in developing nations too. For instance, more than 1,000 smart city pilot projects are either ready for or are under construction globally and around 500 of these projects are in China.
The global bridges, gateways and routers market was worth $153.55 billion in 2019. It is expected to grow at a compound annual growth rate (CAGR) of 7.28% and reach $203.36 billion by 2023.
The bridges, gateways and routers market consists of sales of bridges, gateways and routers and related services for networking purposes. Bridges, gateways and routers establishments produce the devices which are used for networking and manage the amount of traffic, allow data to flow from one discrete network to another, and connect two different networks, sort incoming data, and distribute it to the correct destination. The bridges, gateways and routers market is segmented by application into household, commercial, industry, and transportation, and by end-use it is segmented into indoor and outdoor.
The impact of digitization across all industries is driving the use of wireless technologies and equipment in developed and developing countries. Rising data traffic, growth in public WiFi, and emerging 4G and 5G technologies are driving the growth of wireless equipment that involves bridges, gateways and routers to transfer data over a network. Moreover, many companies are shifting from traditional communications systems such as fixed line technologies to wireless and mobile technologies. For instance, according to a report by the US Health Department, 50.8% of American households were wireless by the end of 2016, thereby indicating a decrease in wireline usage.