Network processors are estimated to depict a considerable demand over the coming years. The surge could be attributed to an increase in the bandwidth applications and a considerable upsurge in video traffic.
According to Business Research Insights, the global network processor market size was USD 5.318 billion in 2022. The market is anticipated to reach USD 11.610 billion in 2028, exhibiting a CAGR of 13.9% over the forecast period. The rise is driven by the growing use of wireless connections and an escalation in bandwidth application across various regions.
Leading players across the industry are focused on the adoption of a series of initiatives for the consolidation of their business positions. These include partnerships, merger agreements, acquisitions, and the rollout of new solutions.
Some of the key companies in the market comprise:
- Cisco (U.S.)
- Ericsson (Sweden)
- Qualcomm (U.S.)
- ARM (U.K.)
- Broadcom (U.S.)
- Applied Market Circuit (U.S.)
- Cavium (U.S.)
- Fortinet (U.S.)
- Marvell (U.S.)
- Mellanox (EZchip) (Israel)
Some of the vital initiatives undertaken by these companies have been enlisted below:
- Cisco: Cisco, a digital communications technology conglomerate is based in San Jose, California, U.S. In February 2023, the company shared plans of collaborating with V.tal for enhancing the capacity of its Brazil-based fiber-optic multi-tenant neutral network. The move was aimed at enabling the Internet for the Future and boosting the delivery of 5G services, increasing connectivity across the country.
As stated by V.tal, it is committed to a neutral network strategy for the expansion of beyond 20 million homes passed, delivery related service innovations, and accelerating the deployment of 5G for customers throughout Brazil.
- Ericsson: In February 2023, Ericsson along with Microsoft and Intel raised the network slicing bar via the successful demonstration of 5G standalone (end-to-end) network slicing capabilities on a Windows laptop. The trial depicts the technology’s applicability on devices beyond smartphones, preparing the groundwork for new business opportunities for cellular-connected laptops.
Furthermore, the company also entered a new 5G private network partnership with MUGLER, European system integrator and telco network provider. The collaboration is expected to benefit an extensive range of industries. The Ericsson Private 5G will power new private networks by providing agile, secure, and reliable connectivity for supporting the usage, adoption, and scaling of emerging and new data-driven technologies.
In October 2022, an industry-first solution from NETSCOUT, Swisscom, and Ericsson provided automatic packet data access and the ability for analyzing raw packet data. The solution enabled network function monitoring and data processing in the cloud.
- ARM: In April 2022, Arm Holdings introduced its latest micro controller design for the provision of high-performance computing at the edge. Furthermore, it provided two new platforms for decreasing the development time of IoT devices.
The Cortex-M line controller line is deployed in small low-power devices such as smart watches. However, the Cortex-M85 performs better compared to the rest of the line. The solution has been designed for the enhancement of AI operations such as voice recognition on edge devices including drones and smart-home products.
- Fortinet: Cybersecurity company Fortinet is based in Sunnyvale, California. The company sells and develops security solutions such as antivirus programs, firewalls, or intrusion detection systems. In February 2023, Fortinet announced the latest breakthrough in ASIC technology. The FortiSP5 solution provides considerable secure power advantages. These include the ability to enable new secure infrastructure and low power consumption and cost.
In addition to such initiatives, major companies are participating in trade fairs and undertaking research activities for the launch of superior solutions. Besides, rising digitalization and favorable regulatory policies are enabling the development of better products.
Furthermore, the growing popularity of 5G technology is expected to propel the adoption of network processors in the coming years. Therefore, market players are constantly striving for new developments for keeping up with new technologies.
A Look at the Regional Landscape
The Asia Pacific market for network processors is expected to register appreciable expansion over the forecast period. The industry expansion can be credited to the rising number of manufacturing units and favorable government initiatives in various countries across the region.
Way Forward
The forthcoming years are expected to register a substantial adoption of network processors considering the upsurge in the demand for networking technologies. The evolution in the healthcare industry during the pandemic period led to increased product demand. However, the network processor demand could be hampered by the shortage of high programmability network processors.