IndexBox forecasts 5.8% annual growth for global core network equipment through 2035

IndexBox projects that the global core network equipment market will grow at a 5.8% compound annual rate from 2026 to 2035 in its base-case outlook. On the firm’s index basis, with 2025 equal to 100, the market would reach 176 by 2035.

Cloud and hyperscale providers are identified as the largest and fastest-growing customer segment, with an estimated 35% share of demand for core network equipment. IndexBox links hyperscale data-center expansion to rising demand for high-capacity switches and routers. Telecom operators’ 5G investment is also cited as a structural source of demand.

For cloud and hyperscale environments, the report highlights adoption of 400G and 800G Ethernet, open network operating systems and custom ASICs as key technology trends. This points to continued requirements for higher-throughput network fabrics supporting AI workloads, cloud services and distributed computing.

Asia-Pacific is expected to retain market leadership, according to the outlook, supported by large-scale data-center construction in China and the expansion of cloud services in Southeast Asia.

The growth case carries material supply-chain and execution constraints. IndexBox identifies shortages of advanced ASICs and programmable chips, price pressure, lengthy certification requirements and geopolitical supply-chain disruption as risks. Certification cycles for core network equipment can take 18 to 36 months, potentially slowing the adoption of new platforms.

For data-center operators and infrastructure investors, the forecast could indicate that network capacity and qualification timelines will remain important considerations alongside server deployment. For equipment suppliers, the projected expansion represents a growth opportunity, although the extent of value capture could be constrained by advanced-chip availability, competitive pricing and long equipment-validation cycles.