Network Infrastructure - Nigeria

Nigeria

Revenue in the Network Infrastructure market is projected to reach US$509.70m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$363.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.98%, resulting in a market volume of US$692.80m by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$7.53 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 Nigeria has been experiencing significant growth in recent years, driven by increasing demand for internet connectivity and the expansion of digital services across the country.

Customer preferences: As more Nigerians gain access to smartphones and other connected devices, there is a growing need for reliable and high-speed internet connections. This has led to a surge in demand for network infrastructure solutions that can support the increasing data traffic and provide seamless connectivity. Customers in Nigeria are increasingly looking for network infrastructure solutions that offer high bandwidth capacity, low latency, and wide coverage.

Trends in the market: One of the key trends in the Network Infrastructure market in Nigeria is the deployment of 4G and 5G networks. Telecommunication companies in the country are investing heavily in upgrading their networks to provide faster and more reliable internet connections. This is driven by the increasing demand for data-intensive applications such as video streaming, online gaming, and cloud services. The deployment of 5G networks is expected to further accelerate the growth of the Network Infrastructure market in Nigeria, as it promises even higher speeds and lower latency. Another trend in the market is the increasing adoption of fiber optic technology. Fiber optic cables offer higher bandwidth capacity and faster data transmission speeds compared to traditional copper cables. This has led to a growing demand for fiber optic network infrastructure in Nigeria, particularly in urban areas where there is a high concentration of businesses and residential buildings.

Local special circumstances: Nigeria is the most populous country in Africa, with a large and rapidly growing population. This presents both opportunities and challenges for the Network Infrastructure market. On one hand, the large population provides a significant customer base for network infrastructure solutions. On the other hand, the rapid population growth puts pressure on the existing network infrastructure, leading to congestion and slower internet speeds in some areas. This creates a need for continuous investment in network infrastructure to meet the growing demand for internet connectivity.

Underlying macroeconomic factors: The Network Infrastructure market in Nigeria is also influenced by macroeconomic factors such as government policies and regulations, infrastructure development, and foreign investment. The Nigerian government has recognized the importance of internet connectivity for economic development and has implemented policies to promote the expansion of network infrastructure across the country. Additionally, the government has attracted foreign investment in the telecommunications sector, which has contributed to the growth of the Network Infrastructure market. In conclusion, the Network Infrastructure market in Nigeria is experiencing significant growth due to increasing demand for internet connectivity and the expansion of digital services. Customer preferences are shifting towards network infrastructure solutions that offer high bandwidth capacity, low latency, and wide coverage. The deployment of 4G and 5G networks, as well as the adoption of fiber optic technology, are key trends in the market. The large and rapidly growing population in Nigeria presents both opportunities and challenges for the Network Infrastructure market, and government policies and foreign investment play a crucial role in driving the market growth.

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.