Network Infrastructure - South Korea

South Korea

Revenue in the Network Infrastructure market is projected to reach US$4.29bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$3.16bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.51%, resulting in a market volume of US$5.52bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$151.90 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 Korea is experiencing significant growth due to various factors.

Customer preferences: Customers in South Korea have a strong preference for high-speed and reliable network infrastructure. With the increasing demand for data-intensive applications such as video streaming, online gaming, and cloud computing, there is a growing need for robust network infrastructure that can support these activities without any interruptions or delays. Additionally, customers are also looking for network infrastructure solutions that are scalable and flexible, allowing them to easily adapt to changing business needs.

Trends in the market: One of the key trends in the Network Infrastructure market in South Korea is the adoption of 5G technology. With its faster speeds, lower latency, and higher capacity, 5G is expected to revolutionize the way people connect and communicate. This has led to a significant increase in the demand for network infrastructure equipment and services that can support 5G networks. Telecom operators in South Korea are investing heavily in upgrading their network infrastructure to support 5G, and this is driving the growth of the market. Another trend in the market is the increasing adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies. SDN and NFV offer several benefits such as improved network agility, reduced costs, and simplified network management. As a result, many organizations in South Korea are deploying SDN and NFV solutions to optimize their network infrastructure and improve operational efficiency.

Local special circumstances: South Korea has a highly developed telecommunications industry and is known for its advanced network infrastructure. The government has been actively promoting the development of the ICT sector, which has contributed to the growth of the Network Infrastructure market. Additionally, South Korea has a strong manufacturing base for network infrastructure equipment, which has helped in meeting the growing demand for such equipment in the country.

Underlying macroeconomic factors: The South Korean economy has been growing steadily over the years, which has led to increased investments in infrastructure development, including network infrastructure. The government's focus on digital transformation and the development of smart cities has also created opportunities for the Network Infrastructure market. Furthermore, South Korea has a high internet penetration rate and a tech-savvy population, which has further fueled the demand for network infrastructure. In conclusion, the Network Infrastructure market in South Korea is witnessing significant growth due to the increasing demand for high-speed and reliable network infrastructure. The adoption of 5G technology and the deployment of SDN and NFV solutions are key trends in the market. The government's support for the ICT sector and the country's strong manufacturing base for network infrastructure equipment are local special circumstances that are driving the growth of the market. The underlying macroeconomic factors, such as the steady economic growth and the government's focus on digital transformation, are also contributing to the development of the Network Infrastructure market in South Korea.

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.