Network Infrastructure - Africa

Africa

Revenue in the Network Infrastructure market is projected to reach US$3.32bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$2.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.16%, resulting in a market volume of US$4.07bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$6.43 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m in 2024).

Key regions: India, China, Brazil, Indonesia, Japan

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 the Data Center Market in Africa is experiencing subdued growth due to factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in accessing online health services. However, with increasing investment in Service Provider and Enterprise Network Infrastructure, the market is expected to witness significant growth in the coming years.

Customer preferences: With the rise of remote work and the increasing reliance on digital communication, there has been a growing demand for robust and reliable network infrastructure in the Data Center Market within Africa. This has led to a shift towards cloud-based solutions and the adoption of technologies such as Software-Defined Networking (SDN) and Network Function Virtualization (NFV). Additionally, the increasing use of mobile devices and the Internet of Things (IoT) has also driven the need for more advanced network infrastructure to support the growing data traffic.

Trends in the market: In Africa, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, as more businesses move towards digitalization and remote working. This has led to an increase in investment in data centers and fiber optic networks. Additionally, there is a growing trend of using renewable energy sources to power data centers, in line with the continent's push towards sustainability. These trends are significant as they drive the growth of the data center market in Africa and provide opportunities for industry stakeholders to expand their services and offerings. However, there may be challenges in terms of infrastructure limitations and regulatory frameworks, which stakeholders must address to fully capitalize on the potential of the market.

Local special circumstances: In Africa, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's unique geographical and cultural factors. With a diverse landscape and varying levels of technological development, the market dynamics in each country can differ significantly. Additionally, regulatory frameworks can also vary, affecting the availability and affordability of network infrastructure services. For example, in South Africa, the market is driven by the increasing demand for cloud services, while in Nigeria, the focus is on expanding internet connectivity to underserved areas. These factors play a crucial role in shaping the growth and development of the Network Infrastructure Market within the Data Center Market in Africa.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Africa is impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive policies and strong investments in network infrastructure are experiencing rapid market growth, while those with regulatory challenges and limited funding are struggling to keep pace. Furthermore, the increasing demand for data centers and connectivity in Africa, driven by the growing adoption of digital technologies and the expanding population, is propelling the growth of the Network Infrastructure Market within the Data Center Market in the region.

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.