Network Infrastructure - Worldwide

Worldwide

Revenue in the Network Infrastructure market is projected to reach US$197.80bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$143.20bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.67%, resulting in a market volume of US$256.10bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$56.40 in 2024.
The global market share of Cisco was 0% in 2019.
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 is experiencing significant growth worldwide, driven by increasing demand for high-speed internet connectivity, advancements in technology, and the growing number of connected devices.

Customer preferences: Customers are increasingly demanding faster and more reliable internet connections to support their digital activities. With the rise of streaming services, online gaming, and remote working, there is a growing need for robust network infrastructure that can handle the increasing data traffic. Additionally, customers are looking for scalable and flexible solutions that can accommodate future growth and technological advancements.

Trends in the market: One of the key trends in the Network Infrastructure market is the deployment of 5G technology. 5G offers ultra-fast speeds, low latency, and the ability to connect a large number of devices simultaneously. This technology is expected to revolutionize various industries, such as autonomous vehicles, smart cities, and the Internet of Things (IoT). As a result, there is a growing demand for network infrastructure that can support the deployment of 5G networks. Another trend in the market is the adoption of cloud computing. Cloud computing allows businesses to store and access data and applications over the internet, eliminating the need for on-premises infrastructure. This trend is driving the demand for data centers and network infrastructure that can support the increased data storage and processing requirements.

Local special circumstances: In emerging markets, such as India and China, there is a significant need for network infrastructure development. These countries have large populations and a growing middle class, leading to increased internet penetration and demand for digital services. To meet this demand, network infrastructure providers are investing heavily in expanding their networks and improving connectivity. In developed markets, such as the United States and Western Europe, network infrastructure providers are focusing on upgrading their existing networks to support higher speeds and capacities. This includes the deployment of fiber optic cables and upgrading network equipment to handle higher data traffic.

Underlying macroeconomic factors: The growth of the Network Infrastructure market is also influenced by macroeconomic factors. Economic growth, population growth, and urbanization are key drivers of the market. As economies grow, there is an increased demand for digital services and connectivity, driving the need for network infrastructure. Government initiatives and regulations also play a significant role in the development of the Network Infrastructure market. Governments are investing in infrastructure development and implementing policies to promote digital connectivity. For example, the European Union has set ambitious targets for broadband connectivity, driving investment in network infrastructure. In conclusion, the Network Infrastructure market is experiencing significant growth worldwide due to increasing customer demand for high-speed internet connectivity, advancements in technology, and the growing number of connected devices. The deployment of 5G technology and the adoption of cloud computing are key trends in the market. Local special circumstances, such as the need for network infrastructure development in emerging markets and the upgrading of existing networks in developed markets, also contribute to the market's growth. Additionally, macroeconomic factors, such as economic growth and government initiatives, play a significant role in shaping the market.

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.