Network Infrastructure - APAC

APAC

Revenue in the Network Infrastructure market is projected to reach US$101.60bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$73.42bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.93%, resulting in a market volume of US$135.50bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$50.65 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 APAC Data Center Network Infrastructure Market is experiencing moderate growth, driven by the increasing adoption of digital technologies and the growing awareness of the importance of network infrastructure in both service provider and enterprise sectors. However, the market growth is impacted by factors such as high installation costs, limited infrastructure availability, and the complex nature of network infrastructure management.

Customer preferences: With the rise of digital transformation and increasing adoption of cloud computing, there has been a growing demand for reliable and high-performance network infrastructure in the Data Center Market in APAC. This has been driven by the need for seamless connectivity and data transfer, as well as the desire for enhanced security and scalability. Additionally, with the emergence of new technologies such as 5G and edge computing, there is a growing trend towards decentralized data centers and distributed networks, catering to the diverse needs and preferences of consumers in the region.

Trends in the market: In APAC, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for edge computing solutions. This trend is driven by the increasing adoption of IoT devices and the need for real-time data processing. Additionally, there is a growing focus on sustainability and energy efficiency, leading to the implementation of green data centers. These trends are expected to continue in the coming years, presenting opportunities for industry players to offer innovative and eco-friendly solutions. However, the lack of skilled professionals and high initial costs may pose challenges for market growth.

Local special circumstances: In China, the demand for data center infrastructure is driven by the rapid growth of the internet and e-commerce industries. The country's large population and high adoption of technology have also led to a surge in cloud computing and big data analytics, driving the need for robust network infrastructure. Additionally, the Chinese government's support for digital transformation and investments in 5G technology have further fueled the growth of the data center market in the country.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in APAC is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with strong economic growth and supportive policies for data center development are experiencing a surge in demand for network infrastructure solutions. Additionally, the increasing adoption of cloud computing and the rise in data volumes are driving the need for robust network infrastructure to support data center operations.

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.