Network Infrastructure - Europe

Europe

Revenue in the Network Infrastructure market is projected to reach US$54.96bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$39.02bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.44%, resulting in a market volume of US$70.54bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$136.70 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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Analyst Opinion

The Network Infrastructure market in Europe is experiencing significant growth and development. With the increasing demand for high-speed internet and the growing adoption of new technologies, such as cloud computing and Internet of Things (IoT), the need for robust and reliable network infrastructure has become crucial. Customer preferences in the Network Infrastructure market in Europe are shifting towards faster and more efficient connectivity solutions. Businesses and consumers alike are demanding high-speed internet access to support their digital activities. This has led to a surge in the deployment of fiber optic networks and the upgrading of existing infrastructure to meet the growing demand for bandwidth. Additionally, there is a growing interest in wireless connectivity solutions, such as 5G, which offer faster speeds and lower latency. Trends in the market include the increasing investment in network infrastructure by telecommunications companies and internet service providers. These companies are expanding their networks to reach more customers and improve the quality of their services. There is also a trend towards network virtualization and software-defined networking, which allows for greater flexibility and scalability in managing network resources. This enables businesses to adapt to changing demands and optimize their network performance. Local special circumstances in the European market include the diversity of countries and regulatory frameworks. Each country has its own unique market dynamics, which can impact the development of network infrastructure. For example, some countries may have more advanced infrastructure and higher internet penetration rates, while others may still be in the early stages of development. Additionally, regulatory policies and government initiatives can influence the pace and direction of network infrastructure development. Underlying macroeconomic factors driving the development of the Network Infrastructure market in Europe include the increasing digitalization of industries and the need for connectivity in a globalized world. Businesses are increasingly relying on digital technologies to streamline their operations and reach a wider customer base. This requires a robust network infrastructure to support the transfer of data and enable seamless communication. Furthermore, the COVID-19 pandemic has accelerated the adoption of remote working and digital services, further driving the demand for network infrastructure. In conclusion, the Network Infrastructure market in Europe is experiencing rapid growth and development due to increasing customer preferences for faster and more efficient connectivity solutions. The market is characterized by trends such as the expansion of fiber optic networks, the adoption of wireless connectivity solutions, and the virtualization of network infrastructure. Local special circumstances, such as country-specific dynamics and regulatory frameworks, can impact the development of network infrastructure. The underlying macroeconomic factors driving the market include the digitalization of industries and the need for connectivity in a globalized world.

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.