Network Infrastructure - Indonesia

Indonesia

Revenue in the Network Infrastructure market is projected to reach US$2.01bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.51bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.03%, resulting in a market volume of US$2.54bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$13.98 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 Indonesia is experiencing significant growth and development.

Customer preferences: Customers in Indonesia are increasingly demanding faster and more reliable network infrastructure to support their growing digital needs. With the rise of e-commerce, social media, and online streaming services, there is a greater need for high-speed internet connections and seamless connectivity. Additionally, the increasing adoption of cloud computing and big data analytics has further driven the demand for robust network infrastructure.

Trends in the market: One of the key trends in the Network Infrastructure market in Indonesia is the rapid expansion of 4G and 5G networks. Mobile operators are investing heavily in upgrading their infrastructure to provide faster and more reliable mobile internet services. This is driven by the increasing smartphone penetration in the country and the growing demand for mobile data. Another trend in the market is the deployment of fiber optic networks. Fiber optic technology offers higher bandwidth and faster internet speeds compared to traditional copper-based networks. As a result, there is a growing demand for fiber optic infrastructure in Indonesia, especially in urban areas where the demand for high-speed internet is highest.

Local special circumstances: Indonesia is an archipelago with thousands of islands, which presents unique challenges for network infrastructure deployment. The geographical landscape of the country makes it difficult and costly to lay cables and establish connectivity across all regions. As a result, there are still many areas in Indonesia that lack access to reliable internet services. However, the government is taking initiatives to improve connectivity in remote areas through various infrastructure development programs.

Underlying macroeconomic factors: The rapid development of the Network Infrastructure market in Indonesia can be attributed to several underlying macroeconomic factors. Firstly, the country's strong economic growth has led to an increase in disposable income and a growing middle class. This has resulted in higher demand for digital services and connectivity. Secondly, the Indonesian government has recognized the importance of digital infrastructure for economic development and has implemented policies to promote investment in the sector. This includes providing incentives for network infrastructure providers and streamlining the regulatory framework. Lastly, the COVID-19 pandemic has further accelerated the growth of the Network Infrastructure market in Indonesia. With the shift towards remote work and online learning, there has been a surge in demand for reliable internet connections. This has prompted both individuals and businesses to invest in upgrading their network infrastructure to meet the increased demand. In conclusion, the Network Infrastructure market in Indonesia is experiencing significant growth and development driven by customer preferences for faster and more reliable connectivity. The deployment of 4G and 5G networks, as well as fiber optic infrastructure, are key trends in the market. However, the unique geographical landscape of Indonesia and the need to improve connectivity in remote areas present challenges. Nonetheless, underlying macroeconomic factors such as strong economic growth, government support, and the impact of the COVID-19 pandemic are driving the growth 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.