Network Infrastructure - South Africa

South Africa

Revenue in the Network Infrastructure market is projected to reach US$0.64bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 4.04%, resulting in a market volume of US$0.75bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$25.79 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 South Africa has been experiencing significant growth in recent years.

Customer preferences: Customers in South Africa are increasingly demanding faster and more reliable network infrastructure to support their growing digital needs. With the rapid adoption of cloud computing, big data analytics, and Internet of Things (IoT) technologies, businesses and individuals alike require robust and efficient networks to connect and communicate. Additionally, the increasing popularity of online streaming services and e-commerce platforms has further fueled the demand for high-speed internet connections.

Trends in the market: One of the key trends in the Network Infrastructure market in South Africa is the deployment of 5G technology. As the demand for faster and more reliable connectivity grows, telecommunication companies are investing in the development and implementation of 5G networks. This technology promises significantly higher data transfer speeds, lower latency, and increased capacity, making it ideal for supporting the growing digital ecosystem in the country. Another trend in the market is the expansion of fiber optic networks. Fiber optic cables offer higher bandwidth and faster data transmission compared to traditional copper cables. With the increasing demand for high-speed internet and the need for reliable connectivity, telecommunication companies are investing in the deployment of fiber optic networks across the country. This trend is expected to continue as more areas are connected and the demand for faster internet access grows.

Local special circumstances: South Africa has a unique set of circumstances that contribute to the development of the Network Infrastructure market. The country has a large and diverse population, with urban and rural areas requiring different network infrastructure solutions. While urban areas have a higher population density and demand for high-speed internet, rural areas often lack basic connectivity. This presents an opportunity for telecommunication companies to expand their network coverage and bridge the digital divide in the country. Furthermore, South Africa has a competitive telecommunication market, with multiple service providers vying for market share. This competition has led to continuous innovation and investment in network infrastructure to attract and retain customers. As a result, customers in South Africa have access to a wide range of network options and services, driving the growth of the market.

Underlying macroeconomic factors: The growth of the Network Infrastructure market in South Africa is also influenced by underlying macroeconomic factors. The country has a growing economy and a rising middle class, which has increased the demand for digital services and connectivity. Additionally, government initiatives to promote digital inclusion and improve internet access have further stimulated the market. In conclusion, the Network Infrastructure market in South Africa is experiencing significant growth due to customer preferences for faster and more reliable connectivity. The deployment of 5G technology and the expansion of fiber optic networks are key trends in the market. The unique circumstances of the country, such as the urban-rural divide and competitive telecommunication market, contribute to the development of the market. Furthermore, underlying macroeconomic factors, such as a growing economy and government initiatives, are driving the growth of the Network Infrastructure market in South Africa.

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.