Network Infrastructure - ASEAN

ASEAN

Revenue in the Network Infrastructure market is projected to reach US$7.57bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$5.63bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.27%, resulting in a market volume of US$8.89bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$21.83 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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Region comparison

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Analyst Opinion

The Network Infrastructure market in the Data Center market in ASEAN is experiencing steady growth, influenced by factors like increased adoption of digital technologies, growing awareness about health, and the convenience of online services. However, subdued growth is attributed to challenges faced by both Service Provider and Enterprise sub-markets, such as limited budgets and slow adoption of newer technologies.

Customer preferences: The increasing adoption of cloud computing and the rise of Internet of Things (IoT) devices have resulted in a growing demand for network infrastructure within the data center market. This trend is driven by the need for reliable and high-speed connectivity to support the proliferation of data and the seamless transfer of information across different devices and platforms. With the rise of smart cities and smart homes, there is also a growing demand for network infrastructure to support these interconnected environments. As technology continues to advance, there is a strong emphasis on building robust and efficient network infrastructure to enable seamless connectivity and data transfer.

Trends in the market: In ASEAN, the Network Infrastructure Market within the Data Center Market is seeing a surge in demand for edge computing solutions, as businesses aim to reduce latency and improve data processing capabilities. Additionally, there is a growing trend of utilizing software-defined networking (SDN) to optimize network efficiency and flexibility. This trend is expected to continue as enterprises adopt cloud-based applications and services. This has significant implications for stakeholders as it drives the need for advanced network infrastructure and innovative solutions to meet the evolving demands of the digital economy.

Local special circumstances: In ASEAN, the Network Infrastructure Market within the Data Center Market is influenced by the region's diverse landscape and the varying levels of technological development among its member countries. Regulatory differences, such as varying data privacy laws and cybersecurity regulations, also impact the market. For instance, in Singapore, the government's strong focus on data security has led to a highly advanced data center market, while in Myanmar, the lack of infrastructure and limited internet penetration presents challenges for data center development.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in ASEAN is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in infrastructure. Countries with advanced digital infrastructure, supportive policies, and strong investment in data centers are experiencing rapid market growth, while those with limited technological capabilities and inadequate government support are facing challenges in meeting the growing demand for data center services. Moreover, the increasing digitalization of businesses and industries is driving the demand for network infrastructure in data centers, as companies rely on these facilities to store and process large volumes of data.

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.