Network Infrastructure - Mexico

Mexico

Revenue in the Network Infrastructure market is projected to reach US$2.47bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.85bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.93%, resulting in a market volume of US$3.11bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$40.31 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 Mexico has been experiencing significant growth in recent years.

Customer preferences: Customers in Mexico are increasingly demanding faster and more reliable network infrastructure to support their growing digital needs. With the rise of e-commerce, online streaming, and remote working, there is a higher demand for high-speed internet connections and seamless connectivity. Additionally, the increasing adoption of Internet of Things (IoT) devices and the need for data centers to support cloud computing services are also driving the demand for network infrastructure in the country.

Trends in the market: One of the key trends in the Network Infrastructure market in Mexico is the deployment of 5G technology. As the fifth generation of wireless technology, 5G offers faster speeds, lower latency, and higher capacity compared to previous generations. This technology is expected to revolutionize various industries, including healthcare, transportation, and manufacturing. The deployment of 5G networks requires significant investments in network infrastructure, such as new base stations and fiber optic cables, which is driving the growth of the market. Another trend in the market is the increasing adoption of fiber optic networks. Fiber optic cables offer higher bandwidth and faster speeds compared to traditional copper cables. As a result, there is a growing demand for fiber optic infrastructure in Mexico to support the increasing data traffic. This trend is driven by the need for faster internet connections, especially in urban areas where the population density is higher.

Local special circumstances: Mexico has a large and growing population, which creates a significant demand for network infrastructure. The country is also experiencing urbanization, with more people moving to cities for better job opportunities and living standards. This urbanization trend further increases the demand for network infrastructure in urban areas. Additionally, Mexico has a strong manufacturing sector, which requires reliable network infrastructure for efficient operations. The country is a major exporter of automobiles, electronics, and other manufactured goods. To remain competitive in the global market, Mexican manufacturers need reliable and high-speed network infrastructure to support their operations and connect with global supply chains.

Underlying macroeconomic factors: The growth of the Network Infrastructure market in Mexico is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has led to increased investments in infrastructure development. The Mexican government has been implementing initiatives to improve the country's digital infrastructure, including the expansion of broadband coverage and the promotion of digital inclusion. Furthermore, Mexico has a young and tech-savvy population that is driving the demand for digital services. The increasing smartphone penetration and internet usage in the country are creating opportunities for network infrastructure providers to cater to the growing digital needs of the population. In conclusion, the Network Infrastructure market in Mexico is growing due to customer preferences for faster and more reliable connectivity, the deployment of 5G technology, the adoption of fiber optic networks, local special circumstances such as urbanization and a strong manufacturing sector, and underlying macroeconomic factors such as steady economic growth and a tech-savvy population.

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.