Network Infrastructure - Japan

Japan

Revenue in the Network Infrastructure market is projected to reach US$12.53bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$9.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.72%, resulting in a market volume of US$16.87bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$186.60 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 Japan is experiencing significant growth and development. Customer preferences in the market are shifting towards faster and more reliable network connections. With the increasing reliance on digital technologies and the growing demand for data-intensive applications such as video streaming and cloud computing, customers are seeking network infrastructure solutions that can support high-speed and seamless connectivity. Additionally, there is a growing need for enhanced network security measures to protect against cyber threats and ensure the privacy of sensitive data. Trends in the market indicate a strong focus on the deployment of 5G networks. Japan is one of the leading countries in the adoption of 5G technology, driven by the government's initiatives to accelerate the deployment of high-speed networks and the growing demand for advanced mobile services. The implementation of 5G networks will not only provide faster and more reliable connectivity for consumers but also enable the development of innovative applications and services such as smart cities, autonomous vehicles, and Internet of Things (IoT) devices. Another trend in the market is the increasing investment in fiber-optic infrastructure. Fiber-optic networks offer higher bandwidth and lower latency compared to traditional copper-based networks, making them ideal for supporting the growing demand for high-speed internet access. The Japanese government has been actively promoting the expansion of fiber-optic networks across the country, aiming to achieve nationwide coverage by 2025. This investment in fiber-optic infrastructure will not only benefit consumers but also enable businesses to leverage advanced technologies and drive digital transformation. Local special circumstances in Japan's Network Infrastructure market include the country's dense population and highly urbanized areas. The concentration of population in major cities presents both opportunities and challenges for network infrastructure providers. On one hand, the high population density allows for a large customer base and potential market size. On the other hand, it also means that network infrastructure needs to be able to handle the high demand and traffic congestion in urban areas. This requires the implementation of advanced technologies and efficient network management strategies to ensure smooth and uninterrupted connectivity. Underlying macroeconomic factors driving the development of the Network Infrastructure market in Japan include the country's strong economy and technological advancements. Japan has a well-developed ICT sector and is known for its technological innovation and expertise. The government's focus on digital transformation and the promotion of advanced technologies such as 5G and fiber-optic networks provide a conducive environment for the growth of the Network Infrastructure market. Additionally, the increasing digitalization of various industries and the rise of remote work and online services further drive the demand for robust network infrastructure solutions in Japan.

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.