Network Infrastructure - Africa

Africa

Revenue in the Network Infrastructure market is projected to reach US$2.87bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$2.05bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.68%, resulting in a market volume of US$3.58bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$5.79 in 2024.
In global comparison, most revenue will be generated in China (US$45,690m in 2024).

Key regions: Europe, India, China, Japan, Germany

Definition:

The Network Infrastructure market focuses on hardware resources essential for service provider and enterprise networks. This market specifically focuses on solutions designed for the complex networking requirements of businesses and organizations, setting aside options like consumer-grade networking hardware products such as basic WIFI routers and network switches. These network infrastructure components are crucial in environments where reliable and secure connectivity, as well as efficient network operations, are paramount, establishing them as a fundamental part of the IT infrastructure in various industries.

Structure:

The Network Infrastructure market is structured in two markets based on the services model provided by the companies.

Service Provider Network Infrastructure covers the hardware resources of telecommunication service companies that enable wired and wireless network connectivity and communication to transfer voice and data.
Enterprise Network Infrastructure covers the hardware resources that enable wired and wireless network connectivity, communication, operations, and management of enterprises.

Additional Information:

The Network Infrastructure market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Network Infrastructure market include companies such as Huawei, HPE, Cisco, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure market in Africa is experiencing significant growth and development, driven by various factors such as increasing internet penetration, rising demand for mobile data, and government initiatives to improve connectivity across the continent. Customer preferences in the Network Infrastructure market in Africa are primarily focused on reliable and high-speed internet connectivity. With the increasing adoption of smartphones and other connected devices, consumers are demanding faster internet speeds and seamless connectivity. This has led to a growing demand for network infrastructure solutions that can support high-speed data transmission and provide reliable connectivity. Trends in the market indicate a shift towards the deployment of fiber optic networks in Africa. Fiber optic cables offer higher bandwidth and faster data transmission speeds compared to traditional copper cables. As a result, network operators and service providers are investing in the deployment of fiber optic networks to meet the growing demand for high-speed internet connectivity. This trend is particularly evident in urban areas where there is a higher concentration of internet users. Another trend in the market is the increasing adoption of 4G and 5G networks. As the demand for mobile data continues to rise, network operators are upgrading their infrastructure to support faster and more efficient data transmission. This includes the deployment of 4G and 5G networks, which offer higher data speeds and lower latency. The rollout of 5G networks in Africa is still in its early stages, but it is expected to gain momentum in the coming years as network operators and service providers invest in upgrading their infrastructure. Local special circumstances in Africa, such as the vast geographical landscape and the presence of remote and underserved areas, pose challenges to the development of network infrastructure. In many parts of Africa, especially in rural and remote areas, there is a lack of basic infrastructure such as electricity and road connectivity. This makes it difficult to deploy network infrastructure and provide internet connectivity to these areas. However, governments and organizations are working towards bridging this digital divide by implementing initiatives to improve connectivity in underserved areas. Underlying macroeconomic factors, such as population growth, urbanization, and increasing disposable income, are driving the demand for network infrastructure in Africa. The continent has a young and rapidly growing population, which is fueling the demand for internet services and digital technologies. Additionally, the increasing urbanization rate in Africa is leading to a higher concentration of internet users in cities, creating a need for robust network infrastructure. Rising disposable income levels are also enabling more people to afford internet services, further driving the demand for network infrastructure. In conclusion, the Network Infrastructure market in Africa is witnessing significant growth and development due to increasing internet penetration, rising demand for mobile data, and government initiatives to improve connectivity. Customer preferences are focused on reliable and high-speed internet connectivity, leading to the deployment of fiber optic networks and the adoption of 4G and 5G networks. However, local special circumstances such as the vast geographical landscape and the presence of remote areas pose challenges to the development of network infrastructure. Underlying macroeconomic factors, such as population growth and urbanization, are driving the demand for network infrastructure in Africa.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.