Network Infrastructure - India

India

Revenue in the Network Infrastructure market is projected to reach US$5.20bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$4.03bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.79%, resulting in a market volume of US$6.27bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$9.89 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 India is experiencing significant growth and development, driven by various factors such as increasing internet penetration, rising demand for data services, and government initiatives to promote digital connectivity.

Customer preferences: Customers in India are increasingly relying on digital services and connectivity for various aspects of their daily lives, including communication, entertainment, and business activities. This has led to a growing demand for reliable and high-speed network infrastructure to support these services. Additionally, with the rise of e-commerce and online platforms, businesses are also seeking robust network infrastructure to ensure smooth operations and seamless customer experiences.

Trends in the market: One of the key trends in the Network Infrastructure market in India is the rapid expansion of 4G and upcoming 5G networks. Telecom operators are investing heavily in upgrading their networks to provide faster and more reliable internet connectivity to consumers. This trend is driven by the increasing demand for data services, particularly video streaming and online gaming, which require high bandwidth and low latency. Another trend is the increasing adoption of cloud computing and data centers in India. As businesses shift towards digitalization and remote working models, there is a growing need for scalable and secure network infrastructure to support cloud-based applications and data storage. This has led to the establishment of new data centers and the expansion of existing ones, driving the demand for network infrastructure solutions.

Local special circumstances: India is a vast and diverse country with varying levels of infrastructure development across different regions. While urban areas have relatively well-established network infrastructure, rural areas still face challenges in terms of connectivity. The government has recognized this disparity and has launched initiatives such as the BharatNet project to provide broadband connectivity to rural areas. This presents opportunities for network infrastructure providers to expand their reach and cater to the underserved markets.

Underlying macroeconomic factors: India's growing economy and increasing disposable income have contributed to the growth of the Network Infrastructure market. As more people gain access to smartphones and affordable internet plans, the demand for network infrastructure to support these devices and services has increased. Additionally, the government's Digital India campaign and initiatives such as Make in India have further accelerated the adoption of digital technologies and created a favorable environment for network infrastructure investments. In conclusion, the Network Infrastructure market in India is witnessing significant growth and development driven by increasing customer preferences for digital services, the expansion of 4G and upcoming 5G networks, the adoption of cloud computing and data centers, local special circumstances such as rural connectivity initiatives, and underlying macroeconomic factors such as a growing economy and government initiatives. These factors are expected to continue driving the growth of the market in the coming years.

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.