Network Infrastructure - Australia

Australia

Revenue in the Network Infrastructure market is projected to reach US$2.87bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.98bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.08%, resulting in a market volume of US$3.34bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$196.10 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 Australia is experiencing subdued growth, influenced by factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in providing reliable online services. This trend is prominent in both the Service Provider and Enterprise sub-markets, as they face similar challenges in expanding their digital offerings. As a result, the growth rate in the overall market has been impacted, with companies focusing on addressing these barriers to drive future growth.

Customer preferences: As digital transformation continues to accelerate, there is a growing demand for reliable and high-speed network infrastructure within the Data Center Market in Australia. This is driven by the increasing use of cloud-based solutions, virtualization, and data-intensive applications. Additionally, with the rise of remote work and online education, there is a growing need for robust network infrastructure to support seamless connectivity and collaboration. This trend is expected to continue as organizations and individuals prioritize flexibility, efficiency, and scalability in their digital operations.

Trends in the market: In Australia, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards software-defined networking (SDN) and network function virtualization (NFV). This trend is driven by the increasing demand for flexibility, scalability, and cost-efficiency in data center networks. Additionally, there is a growing adoption of cloud-based services, which require a more agile and dynamic network infrastructure. This trend is significant as it allows for better network management and optimization, while also reducing operational costs. It also has implications for industry stakeholders, including data center providers, network equipment vendors, and cloud service providers, who must adapt their offerings to meet the evolving needs of the market.

Local special circumstances: In Australia, the Network Infrastructure Market within the Data Center Market is influenced by the country's vast geography and remote population. This has led to a high demand for reliable and efficient network infrastructure to support the growing digital economy. Additionally, the country's strict data privacy regulations and government policies promoting data sovereignty have shaped the market landscape, with a focus on local data storage and security. These unique factors drive the demand for robust and localized network infrastructure solutions, creating opportunities for both local and international players in the market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Australia is influenced by macroeconomic factors such as advancements in technology, government policies, and investments in infrastructure. These factors impact the growth of the market by creating a conducive environment for the adoption of network infrastructure solutions. Countries with strong government support and investments in digital infrastructure are experiencing faster market growth compared to regions with limited resources and regulatory challenges. The increasing demand for data centers and network infrastructure solutions, driven by the growth of digital transformation and cloud computing, is also contributing to the market growth in Australia.

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.