Network Infrastructure - China

China

Revenue in the Network Infrastructure market is projected to reach US$45.69bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$33.00bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.35%, resulting in a market volume of US$60.67bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$57.72 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 China is experiencing significant growth and development.

Customer preferences: Chinese customers are increasingly demanding faster and more reliable network infrastructure to support their growing digital needs. With the rise of e-commerce, online gaming, and video streaming, there is a higher demand for high-speed internet connections and efficient data transmission. Additionally, the increasing adoption of cloud computing and the Internet of Things (IoT) is driving the need for robust network infrastructure that can handle large amounts of data and provide seamless connectivity.

Trends in the market: One of the key trends in the Network Infrastructure market in China is the deployment of 5G technology. China has been at the forefront of 5G development and has made significant investments in building the necessary infrastructure. The rollout of 5G networks is expected to revolutionize the way people and businesses connect, enabling faster download and upload speeds, lower latency, and greater capacity. This will pave the way for the development of new technologies and applications such as autonomous vehicles, smart cities, and augmented reality. Another trend in the market is the increasing adoption of software-defined networking (SDN) and network function virtualization (NFV). SDN and NFV technologies offer greater flexibility, scalability, and cost-efficiency in managing network infrastructure. They allow for centralized control and management of network resources, making it easier to deploy new services and applications. As businesses in China seek to optimize their network infrastructure and reduce operational costs, the adoption of SDN and NFV is expected to increase.

Local special circumstances: China has a large population and a rapidly growing middle class, which is driving the demand for network infrastructure. The country has the largest number of internet users in the world, and this number continues to grow. As more people come online and access digital services, the need for robust network infrastructure becomes even more critical. Additionally, China has a highly competitive telecom market, with several major players vying for market share. This competition is driving innovation and investment in network infrastructure to gain a competitive edge.

Underlying macroeconomic factors: China's strong economic growth and government support for digital transformation are key drivers of the Network Infrastructure market. The Chinese government has made significant investments in building the necessary infrastructure to support the country's digital economy. Initiatives such as "Made in China 2025" and "Internet Plus" have provided incentives and support for the development of advanced network infrastructure. Additionally, China's growing middle class and increasing disposable income are fueling the demand for digital services, driving the need for better network infrastructure. In conclusion, the Network Infrastructure market in China is experiencing rapid growth and development driven by customer preferences for faster and more reliable connectivity. The deployment of 5G technology and the adoption of SDN and NFV are key trends in the market. China's large population, competitive telecom market, strong economic growth, and government support for digital transformation are underlying macroeconomic factors that contribute to the development of the market.

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.