Network Infrastructure - Central Asia

Central Asia

Revenue in the Network Infrastructure market is projected to reach US$382.50m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$283.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.30%, resulting in a market volume of US$472.10m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$11.89 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 Central Asia has seen moderate growth due to factors such as increasing demand for digital technologies and growing awareness of the importance of network connectivity in both service provider and enterprise sectors. However, the subdued growth rate can be attributed to challenges such as limited investment in infrastructure and slow adoption of new technologies in the region.

Customer preferences: The Network Infrastructure Market within the Data Center Market is experiencing a rise in demand for cloud-based solutions, as businesses and individuals prioritize flexibility and scalability. This shift is driven by a growing reliance on remote work and digital communication, as well as the need for efficient data storage and management. Additionally, the adoption of Internet of Things (IoT) devices and Edge computing is driving the demand for reliable network infrastructure to support these technologies.

Trends in the market: In Central Asia, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue, with a projected growth of 14% by 2025. The significance of this trend lies in the cost-effectiveness and scalability of cloud services, enabling businesses to streamline their operations and improve efficiency. Industry stakeholders should capitalize on this trend by investing in advanced network infrastructure and data center facilities, to cater to the growing demand for cloud-based services in the region.

Local special circumstances: In Central Asia, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's unique geopolitical landscape. The region is home to countries like Kazakhstan, Turkmenistan, and Uzbekistan, which have different levels of economic development and varying levels of internet penetration. This creates a diverse market for network infrastructure, with some countries having a greater demand for data centers and advanced networking solutions. Additionally, the cultural and regulatory differences between these countries also play a significant role in shaping the market dynamics. For example, Turkmenistan has strict regulations on internet usage, which could limit the growth of the data center market in the country. In contrast, countries like Kazakhstan have a more liberal approach to internet usage, leading to a higher demand for data centers and network infrastructure.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Central Asia is heavily influenced by macroeconomic factors such as government investments in digital infrastructure, technological advancements, and global economic trends. Countries with robust digital infrastructure and favorable regulatory environments are experiencing faster market growth compared to regions with limited investment and regulatory challenges. Furthermore, the increasing demand for data storage and cloud computing services, driven by the rise in internet penetration and digitalization, is fueling the growth of the Network Infrastructure Market in this region. Additionally, the growing adoption of emerging technologies such as artificial intelligence and the Internet of Things is expected to further drive the demand for network infrastructure in the Data Center Market in Central Asia.

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.