Network Infrastructure - China

China

Revenue in the Network Infrastructure market is projected to reach US$63.56bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$45.36bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.85%, resulting in a market volume of US$88.52bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$80.76 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 Data Center market in China is experiencing average growth, driven by factors such as increasing adoption of digital technologies, growing demand for network infrastructure in both service provider and enterprise sectors, and the convenience of online services. These factors are contributing to the overall growth rate of the market.

Customer preferences: The rise of cloud computing and the Internet of Things (IoT) has led to a growing demand for efficient and reliable network infrastructure within data centers in China. This trend is driven by the increasing adoption of digital technologies, such as AI, big data, and virtual reality. Additionally, the growing number of mobile and internet users in China has created a need for robust network infrastructure to support the ever-increasing data traffic. As a result, there is a growing focus on developing high-speed and low-latency networks to meet the demands of the digital era.

Trends in the market: In China, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services and edge computing solutions. This is driven by the country's rapid digital transformation and the increasing adoption of emerging technologies such as 5G, Internet of Things (IoT), and Artificial Intelligence (AI). As a result, data center providers are expanding their network infrastructure to support these technologies and meet the growing demand for high-speed and low-latency connectivity. This trend is expected to continue in the coming years, presenting opportunities for industry stakeholders to capitalize on the growing demand for advanced network infrastructure solutions in the Chinese market.

Local special circumstances: In China, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's vast population and rapid economic growth. The demand for data centers is driven by the increasing use of internet services and the government's push for digital transformation. Additionally, China's strict cybersecurity laws and regulations play a significant role in shaping the network infrastructure market, as companies must comply with strict data storage and security requirements. Moreover, the unique cultural and business practices in China, such as the emphasis on relationships and government connections, also impact the dynamics of the market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in China is heavily impacted by macroeconomic factors such as government policies, technological advancements, and overall economic health. With China's strong investment in digital infrastructure and push towards digital transformation, the demand for data centers and network infrastructure is expected to increase. Additionally, the growing digital economy and increasing internet penetration in China are driving the need for robust network infrastructure to support the growing data traffic. The country's stable economic growth and favorable regulatory environment further support the growth of the Network Infrastructure Market in the Data Center Market in China.

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.