Network Infrastructure - United Kingdom

United Kingdom

Revenue in the Network Infrastructure market is projected to reach US$8.69bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$6.25bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.63%, resulting in a market volume of US$11.66bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$244.80 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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Analyst Opinion

The Network Infrastructure market in United Kingdom has been experiencing significant growth in recent years.

Customer preferences: Customers in the United Kingdom have shown 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. Additionally, businesses in the United Kingdom are increasingly relying on digital technologies and are investing in network infrastructure to ensure seamless connectivity and communication.

Trends in the market: One of the key trends in the Network Infrastructure market in United Kingdom is the adoption of fiber optic technology. Fiber optic networks offer higher bandwidth and faster data transmission speeds compared to traditional copper-based networks. This trend is driven by the need for faster internet speeds and the growing demand for high-quality video streaming and online gaming. As a result, there has been a significant increase in the deployment of fiber optic networks across the country. Another trend in the market is the shift towards software-defined networking (SDN) and network function virtualization (NFV). SDN and NFV technologies enable network operators to virtualize network functions and manage them through software, providing greater flexibility and scalability. This trend is driven by the need for more agile and cost-effective network infrastructure solutions. As a result, there has been a growing adoption of SDN and NFV technologies in the United Kingdom.

Local special circumstances: The United Kingdom has a highly competitive telecommunications market, with several major players vying for market share. This competition has led to increased investments in network infrastructure to gain a competitive edge. Additionally, the government in the United Kingdom has been actively promoting the development of digital infrastructure and has set targets for nationwide coverage of high-speed broadband. These factors have contributed to the growth of the Network Infrastructure market in the country.

Underlying macroeconomic factors: The growth of the Network Infrastructure market in the United Kingdom can also be attributed to favorable macroeconomic factors. The United Kingdom has a strong economy and a high level of digitalization, which has created a conducive environment for the growth of the Network Infrastructure market. Additionally, the increasing demand for data-intensive applications and the need for reliable connectivity have driven investments in network infrastructure. In conclusion, the Network Infrastructure market in United Kingdom is experiencing significant growth due to customer preferences for high-speed and reliable connectivity, the adoption of fiber optic technology, the shift towards SDN and NFV, local special circumstances such as competition and government initiatives, and underlying macroeconomic factors. These factors are driving investments in network infrastructure and shaping the future of the market in the United Kingdom.

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.