Network Infrastructure - Central & Western Europe

Central & Western Europe

Revenue in the Network Infrastructure market is projected to reach US$34.89bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$24.29bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.98%, resulting in a market volume of US$45.70bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$210.10 in 2024.
In global comparison, most revenue will be generated in China (US$45,690m in 2024).

Key regions: Europe, India, China, Japan, Germany

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 Network Infrastructure market in Central & Western Europe is experiencing significant growth and development due to several key factors. Customer preferences in the region are driving the demand for advanced network infrastructure solutions. Businesses and consumers alike are increasingly relying on digital technologies and connectivity, leading to a greater need for robust and reliable network infrastructure. With the rise of cloud computing, IoT devices, and data-intensive applications, there is a growing demand for high-speed and low-latency networks. Additionally, the increasing adoption of remote work and online services has further accelerated the need for strong network infrastructure to support seamless connectivity. One of the key trends in the market is the deployment of 5G networks. Central & Western European countries are actively investing in the development and rollout of 5G infrastructure to meet the growing demand for faster and more reliable connectivity. 5G networks offer significantly higher data transfer speeds, lower latency, and increased capacity, making them essential for supporting emerging technologies such as autonomous vehicles, smart cities, and industrial automation. The deployment of 5G networks is expected to drive the demand for network infrastructure equipment and services in the region. Another trend in the market is the increasing adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies. SDN and NFV technologies enable organizations to manage and control their networks more efficiently and flexibly, leading to cost savings and improved network performance. These technologies are particularly beneficial for enterprises that require dynamic and scalable network infrastructure to support their digital transformation initiatives. As a result, there is a growing demand for SDN and NFV solutions in Central & Western Europe. Local special circumstances in the region also contribute to the development of the Network Infrastructure market. Central & Western European countries have a strong focus on digitalization and innovation, with many governments implementing policies and initiatives to promote the adoption of advanced technologies. This favorable regulatory environment encourages investment in network infrastructure and fosters collaboration between industry players, leading to the rapid development of the market. Underlying macroeconomic factors also play a role in the growth of the Network Infrastructure market in Central & Western Europe. The region has a strong and stable economy, which provides a conducive environment for businesses to invest in network infrastructure. Additionally, the increasing digitalization of industries and the need for improved connectivity contribute to the growth of the market. In conclusion, the Network Infrastructure market in Central & Western Europe is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The increasing demand for advanced network infrastructure solutions, the deployment of 5G networks, the adoption of SDN and NFV technologies, and the favorable regulatory environment are driving the growth of the market in the region.

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.