Network Infrastructure - Americas

Americas

Revenue in the Network Infrastructure market is projected to reach US$66.59bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$46.33bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.94%, resulting in a market volume of US$93.12bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$132.10 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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Analyst Opinion

The Network Infrastructure Market in the Data Center Market in the Americas is experiencing subdued growth due to factors such as slow adoption of digital technologies, limited awareness among consumers, and challenges in implementing online services for both Service Provider and Enterprise sub-markets. Despite this, the market is expected to grow, driven by the increasing demand for reliable and efficient network infrastructure in the region.

Customer preferences: As the demand for data storage and processing continues to grow, there is a noticeable trend towards edge computing solutions in the Network Infrastructure Market within the Data Center Market. This is driven by the need for low-latency and high-bandwidth connections, as well as the increasing adoption of Internet of Things (IoT) devices. Additionally, the rise of remote work and virtual events has led to a higher demand for reliable and robust network infrastructure to support these activities.

Trends in the market: In the Americas, the Network Infrastructure Market within the Data Center Market is experiencing an increase in demand for edge computing solutions. This trend is driven by the growing adoption of Internet of Things (IoT) devices and the need for real-time data processing. Additionally, there is a rising focus on energy efficiency and sustainability, leading to the development of more eco-friendly data centers. These trends have significant implications for industry stakeholders, as they seek to meet the evolving needs of their customers and stay competitive in the market.

Local special circumstances: In North America, the Network Infrastructure Market within the Data Center Market is heavily influenced by the advanced technological landscape and high demand for cloud services. The region also has strict data privacy laws, leading to the adoption of robust network security solutions. In South America, the market is driven by the growth of e-commerce and digital services, leading to the need for reliable and high-speed network connectivity. Additionally, the region's diverse topography and geographical challenges require specialized network infrastructure solutions to cater to different regions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Americas is impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in network infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Moreover, the increasing demand for data storage and management, driven by the growth of e-commerce and cloud computing, is also contributing to the growth of the Network Infrastructure 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.