Switching and routing equipment market in Italy

Earlier Report Observations

Between 2018 and 2020, the market volume for switching and routing equipment in Italy fluctuated, declining in 2019 before recovering in 2020. The rebound in physical units during 2020 was partly influenced by the COVID-19 pandemic, which increased demand for communication devices supporting remote work and voice recognition technologies as more time was spent at home.

Technological advancements, such as the integration of real-time voice analytics and biometrics into cloud contact center platforms announced in 2021, spurred further market growth. The following year, sector dynamics including rising energy costs and 5G frequency fees exerted pressure, yet the market's value increased due to higher prices. In 2023, the Italian digital market recorded a contraction in the devices and systems segment, particularly for Home & Office equipment, leading to a notable drop in market volume. Concurrently, significant investments by over 70% of operators in 5G network infrastructure helped sustain demand for enterprise-grade networking equipment.

In 2024, market volume recovered, supported by the ongoing expansion of 5G networks and investments in enterprise communication infrastructure, bolstered by national recovery funds. This drove demand for equipment, although the total market value experienced a slight decrease.

Production switching and routing equipment in Italy

In value, 2017-2020, M $ US

The market showed significant fluctuations during this period. The lowest {context} {volume} was recorded in 2020, while the highest occurred in 2017, with a peak-to-trough ratio of 6.7 times. In 2020, Italy's output of switching and routing equipment was valued at 134.7 M $ US, marking a 26.2% year-over-year decline. The largest decline was recorded in 2018 at 80.3%, while the largest increase was in 2019 at 3.3%.

Annual dynamics of production in Italy in value, 2017-2020, M $ US

In kind, 2017-2020, K unit

Market behavior was volatile during these years. Volumes dropped to their minimum in 2019 and climbed to their maximum in 2017, representing a 7.8-fold shift. In 2020, Italy produced 637 K units of switching and routing equipment, reflecting a 13.0% rise compared to the previous year. The minimum value was recorded in 2019 at 564 K units, and the largest decline occurred in 2018 at 87.0%.

Annual dynamics of production in Italy in kind, 2017-2020, K unit

Exports switching and routing equipment from Italy

Exports in kind, K unit

In 2020, Italy's exports of switching and routing equipment reached 2 942 K units, showing a gradual rise of 7.7% compared to 2019. The minimum value was recorded in 2019 at 2 731 K units, with the largest decline that year at 5.7%. Over the period from 2017 to 2020, exports increased by 3.8%, equating to a compound annual growth rate of 1.2%.

Annual dynamics of product's exports from Italy in kind, 2017-2020, K unit

The partner structure of exports in kind from 2017 to 2020 was fragmented, with Spain accounting for 15.2% of exports in kind, the United States for 7.7%, and Switzerland for 7.2%. Together, these three countries represented only 30.1% of total flows, and no single country held a dominant share.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Italy in kind, 2017-2020

Exports in value, M $ US

Italy's exports of switching and routing equipment increased for the third consecutive year. In 2020, exports totaled 1 191 M $ US, which is 57.5% higher than the previous year. Between 2017 and 2020, exports rose by 129.2%, equating to an annualized rate of 31.8%.

Annual dynamics of product's exports from Italy in value, 2017-2020, M $ US

The analysis of exports in value terms from 2017 to 2020 reveals a broad distribution across many markets. Spain accounted for 24.2% of exports in value terms, the United States for 11.0%, and Switzerland for 10.5%. Together, these three countries represented only 45.7% of total flows, with a significant 54.3% falling on other partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Italy in value, 2017-2020

Imports switching and routing equipment to Italy

Imports in kind, K unit

In 2020, Italy's imports of switching and routing equipment totaled 18 066 K units, reflecting an 18.4% advance compared to the previous year. The minimum value was recorded in 2019 at 15 256 K units, while the maximum was in 2018 at 18 861 K units. The largest decline occurred in 2019 at 19.1%.

Annual dynamics of product's imports to Italy in kind, 2017-2020, K unit

From 2017 to 2020, China led the structure of imports in kind with 41.5%, followed by the Netherlands at 23.2%, and France at 8.2%. Together, these three countries accounted for 72.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Italy in kind, 2017-2020

Imports in value, M $ US

After a two-year rise, Italy's imports of switching and routing equipment declined. In 2020, import volume amounted to 3 012 M $ US, showing minimal change over the past year. The maximum value was recorded in 2019 at 3 015 M $ US, and the largest increase occurred in 2018 at 24.0%. Over the period from 2017 to 2020, imports increased by 45.3%, with a compound annual growth rate of 13.3%.

Annual dynamics of product's imports to Italy in value, 2017-2020, M $ US

From 2017 to 2020, the Netherlands remained the principal supplier of switching and routing equipment to Italy, accounting for 27.8% of imports in value terms, followed by China at 25.9%, and Germany at 9.0%. Together, these three countries jointly accounted for 62.7% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Italy in value, 2017-2020