Network Infrastructure - Central & Western Europe

Revenue in the Network Infrastructure market is projected to reach US$40.68bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$28.13bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.11%, resulting in a market volume of US$49.75bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$234.70 in 2024.
In global comparison, most revenue will be generated China (US$64bn in 2024).

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.

For more information on the data displayed, use the info button right next to the boxes.

Routers, Broadband Access & Switches, such as Cisco Industrial Services Router, and Cisco Catalyst Switch
Enterprise Telephony, such as Cisco IP Telephone, and Cisco Unified IP Conference Phone
Infrastructure Firewalls, such as SonicWall Firewall, and Cisco Firepower

Private Network Infrastructure, such as TP-Link Basic Router, and TP-Link Mini Switch
Network Infrastructure Software, such as Microsoft Core Infrastructure SVR STE, and McAfee Internet Security

The Network Infrastructure market in Central & Western Europe is facing subdued growth, influenced by various factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in providing efficient online services. This is particularly evident in the Enterprise Network Infrastructure sub-market, where organizations are hesitant to invest in new infrastructure due to economic uncertainties. However, the Service Provider Network Infrastructure sub-market is expected to experience moderate growth, driven by demand for high-speed connectivity and increasing investments in 5G technology.

Customer preferences: As the demand for data storage and processing continues to grow, consumers are increasingly prioritizing network infrastructure that can support high-speed connectivity and low latency. This trend is driven by the rise of remote work and online education, as well as the increasing reliance on cloud-based applications and services. Furthermore, with the emergence of 5G technology, there is a growing demand for edge computing solutions to support the increasing volume of data being generated by connected devices. This shift towards more advanced and efficient network infrastructure reflects the changing needs and preferences of consumers in Central & Western Europe.

Trends in the market: In Central & Western Europe, the Network Infrastructure Market within the Data Center Market is seeing a shift towards software-defined networking (SDN) solutions. This trend is driven by the need for more flexible and scalable network infrastructure in the face of increasing data volumes and the rise of cloud computing. Additionally, there is a growing demand for network virtualization and automation, as well as the adoption of open-source networking technologies. These developments are significant for industry stakeholders as they offer greater cost efficiency, enhanced network performance, and the ability to meet evolving business needs. However, they also pose challenges in terms of skills and training, as well as potential security risks. Overall, the trajectory of these trends is towards a more agile and dynamic network infrastructure landscape in Central & Western Europe.

Local special circumstances: In Central & Western Europe, the Network Infrastructure Market within the Data Center Market is heavily influenced by strict data privacy laws and regulations. This has led to the development of advanced security measures and data protection protocols. Additionally, the region's strong focus on renewable energy has resulted in the widespread adoption of energy-efficient solutions in data centers. The market is also influenced by the diverse cultural landscape, with varying levels of technology adoption and infrastructure maturity across different countries.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with strong economic growth, favorable government regulations, and significant investments in network infrastructure are experiencing faster market growth compared to regions with economic challenges and limited infrastructure development. Moreover, the increasing demand for cloud-based services and the proliferation of Internet of Things (IoT) devices are further driving the growth of the Network Infrastructure Market within the Data Center Market in Central & Western Europe.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Nothing runs right in companies or corporations today without the proper IT network infrastructure and equipment. IT networking is the construction, design, and use of network equipment to allow groups of computing devices to exchange data with one another, over both wired and wireless networks. The market covers networking hardware, software, and services, including virtual networks, servers, network management, and security.