Network Infrastructure - United States

United States

Revenue in the Network Infrastructure market is projected to reach US$42.87bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$29.81bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.55%, resulting in a market volume of US$55.25bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$253.70 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 States has been experiencing significant growth in recent years, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Network Infrastructure market in United States have been shifting towards higher bandwidth and faster internet speeds. With the increasing demand for online streaming, gaming, and cloud-based services, consumers are seeking reliable and high-performance network infrastructure solutions. This has led to a surge in the adoption of fiber optic cables, which offer faster and more stable connections compared to traditional copper cables. Additionally, there is a growing demand for wireless network infrastructure, as consumers and businesses seek greater mobility and flexibility in their connectivity options. Trends in the market indicate a strong focus on the deployment of 5G technology in the United States. 5G networks offer significantly higher data transfer speeds, lower latency, and increased capacity compared to previous generations of wireless technology. This has led to increased investments in network infrastructure upgrades and the development of new infrastructure to support the rollout of 5G networks. The deployment of 5G is expected to revolutionize various industries, including healthcare, transportation, and manufacturing, by enabling advanced applications such as autonomous vehicles, remote surgery, and smart cities. Local special circumstances in the United States, such as the increasing need for digital transformation and the rise of remote work, have also contributed to the growth of the Network Infrastructure market. The COVID-19 pandemic has accelerated the adoption of digital technologies and highlighted the importance of robust and reliable network infrastructure. As businesses and individuals increasingly rely on remote communication and collaboration tools, there is a greater demand for network infrastructure solutions that can support these digital workflows. Underlying macroeconomic factors, such as government initiatives and investments, have played a significant role in driving the growth of the Network Infrastructure market in the United States. The government has recognized the importance of network infrastructure for economic growth and competitiveness and has implemented policies to support its development. For example, the Federal Communications Commission (FCC) has allocated significant funding for the expansion of broadband networks in underserved areas. These investments have not only improved connectivity in rural areas but have also stimulated the overall demand for network infrastructure solutions. In conclusion, the Network Infrastructure market in the United States is experiencing significant growth due to customer preferences for higher bandwidth and faster internet speeds, the trend towards 5G deployment, local special circumstances such as digital transformation and remote work, and underlying macroeconomic factors including government initiatives and investments. As the demand for connectivity continues to increase, the Network Infrastructure market is expected to further expand in the coming years.

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.