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Network Infrastructure - CIS

CIS
  • Revenue in the Network Infrastructure market is projected to reach US$4.33bn in 2024.
  • Service Provider Network Infrastructure dominates the market with a projected market volume of US$3.30bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.34%, resulting in a market volume of US$5.10bn by 2029.
  • The average Spend per Employee in the Network Infrastructure market is projected to reach US$37.37 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.

In-Scope

  • 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

Out-Of-Scope

  • 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
Network Infrastructure: market data & analysis - Cover

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Network Infrastructure: market data & analysis

Study Details

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    Most recent update: Jul 2024

    Key Players

    Most recent update: Mar 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Network Infrastructure Market within the Data Center Market in CIS is experiencing subdued growth, influenced by several factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in implementing online health services. This has resulted in a slower growth rate compared to other regions, hindering the overall market's potential for expansion. However, the increasing demand for efficient and secure network infrastructure in the Service Provider and Enterprise sectors could drive growth in the future.

    Customer preferences:
    With the growing adoption of cloud computing and the increasing demand for high-speed data transfer, there has been a shift towards software-defined networking (SDN) solutions in the Network Infrastructure Market within the Data Center Market. This trend is driven by the need for efficient and flexible network management, as well as the growing use of virtualization and automation technologies. Additionally, the rise of Internet of Things (IoT) devices and the need for seamless connectivity has also contributed to the popularity of SDN solutions.

    Trends in the market:
    In the Network Infrastructure Market within the Data Center Market, there is a growing trend towards software-defined networking (SDN) and network function virtualization (NFV). These technologies allow for more flexibility and scalability in network management, reducing the need for physical hardware. Additionally, there is a focus on implementing hyperconverged infrastructure (HCI) to streamline data center operations and improve efficiency. These trends are significant as they enable organizations to adapt to changing demands quickly and reduce costs. However, they also require expertise and resources to implement, creating potential implications for smaller players in the market.

    Local special circumstances:
    In China, the Network Infrastructure Market within the Data Center Market is rapidly expanding due to the country's large population and growing digital economy. The government's initiatives to improve internet connectivity and promote cloud computing have also contributed to the market growth. Additionally, China's strict data privacy regulations have led to the development of advanced network security solutions, making it a prime market for data center infrastructure providers.

    Underlying macroeconomic factors:
    The Network Infrastructure Market within the Data Center Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and overall economic health. Countries with strong investments in network infrastructure and favorable regulatory environments are experiencing rapid growth in the market, while those with limited funding and regulatory challenges are facing slower growth. Moreover, the increasing demand for data center services due to the rising prevalence of digitalization and the growing need for data storage and management is also driving the growth of the Network Infrastructure Market within the Data Center Market.

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

    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.

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    Network Infrastructure: market data & analysis - BackgroundNetwork Infrastructure: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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