Network Infrastructure - Saudi Arabia

Saudi Arabia

Revenue in the Network Infrastructure market is projected to reach US$1.10bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.79bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.40%, resulting in a market volume of US$1.41bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$71.73 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 Saudi Arabia is experiencing significant growth and development due to various factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the current state of the market. Customer preferences in Saudi Arabia are driving the demand for network infrastructure. With the increasing adoption of digital technologies and the growing reliance on internet connectivity, customers are seeking reliable and high-speed network infrastructure solutions. They prioritize seamless connectivity, fast data transfer speeds, and secure networks to support their digital activities. This customer preference for advanced network infrastructure solutions is fueling the growth of the market in Saudi Arabia. Several trends in the market are shaping the development of the network infrastructure sector in Saudi Arabia. One key trend is the rapid expansion of 5G networks. Saudi Arabia has been actively investing in the deployment of 5G infrastructure to meet the increasing demand for high-speed connectivity. This trend is driven by the government's vision to transform the country into a digital hub and support the growth of emerging technologies such as Internet of Things (IoT), artificial intelligence (AI), and smart cities. The deployment of 5G networks is expected to revolutionize various industries and enable new applications and services. Another trend in the market is the increasing adoption of cloud computing and data centers. As businesses in Saudi Arabia embrace digital transformation, there is a growing need for scalable and efficient network infrastructure to support cloud-based applications and services. This trend is driven by the need for cost-effective and flexible IT solutions, as well as the desire to enhance data security and accessibility. The demand for network infrastructure to support cloud computing and data centers is expected to continue growing in the coming years. Local special circumstances also contribute to the development of the network infrastructure market in Saudi Arabia. The government's focus on diversifying the economy and reducing dependency on oil has led to increased investments in technology and digital infrastructure. Initiatives such as Saudi Vision 2030 and the National Transformation Program have created a favorable environment for the growth of the network infrastructure sector. The government is actively promoting public-private partnerships and providing incentives to attract investments in the sector, which is driving the development of the market. Underlying macroeconomic factors, such as population growth and urbanization, also play a role in the development of the network infrastructure market in Saudi Arabia. The country's young and tech-savvy population, coupled with rapid urbanization, is driving the demand for advanced network infrastructure solutions. As more people and businesses require internet connectivity, the need for robust network infrastructure becomes paramount. Additionally, the government's focus on improving the quality of life and enhancing the digital infrastructure in cities further boosts the demand for network infrastructure solutions. In conclusion, the Network Infrastructure market in Saudi Arabia is experiencing significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for reliable and high-speed network infrastructure, the rapid expansion of 5G networks, the increasing adoption of cloud computing and data centers, government initiatives, population growth, and urbanization all contribute to the positive outlook of the market in Saudi Arabia.

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.