Network Infrastructure - D-A-CH

D-A-CH

Revenue in the Network Infrastructure market is projected to reach US$13.95bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$9.35bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.58%, resulting in a market volume of US$16.63bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$250.90 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 D-A-CH is experiencing moderate growth, influenced by factors such as the increasing demand for digital services in the Service Provider and Enterprise sub-markets, coupled with a subdued growth rate due to economic uncertainties and evolving technologies. Rising data center costs and the need for efficient and reliable networks are also impacting the market's growth.

Customer preferences: The rising demand for cloud-based services, coupled with the increasing adoption of IoT devices, is driving the need for robust network infrastructure in the data center market in D-A-CH. In response, data center providers are investing in advanced networking technologies to ensure high-speed connectivity and low latency. Furthermore, the growing trend of remote work and virtual events has highlighted the importance of reliable network infrastructure for seamless communication and collaboration. As a result, data center operators are leveraging innovative solutions, such as edge computing and software-defined networking, to meet the evolving demands of consumers in the D-A-CH region.

Trends in the market: In D-A-CH, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services, as more businesses shift to remote work models. This has led to a rise in virtualization and software-defined networking solutions, with companies seeking improved scalability and flexibility. Additionally, there is a growing trend of using edge computing to reduce latency and improve data processing speeds. These developments have significant implications for industry players, as they must adapt their offerings to meet the evolving needs of their customers and stay competitive in the market.

Local special circumstances: In the D-A-CH region, the Network Infrastructure Market within the Data Center Market is heavily influenced by strict data privacy laws and regulations. This has led to the emergence of highly secure and resilient data centers, catering to the demand for data protection and security. Additionally, the region's location in central Europe makes it a strategic hub for international data exchange, driving the growth of the data center market. The cultural emphasis on efficiency and reliability also plays a significant role in shaping the market, with a focus on energy-efficient and sustainable infrastructure solutions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in D-A-CH is heavily influenced by macroeconomic factors such as technological advancements, government investments in IT infrastructure, and regulatory support. Countries with strong economic growth and stable fiscal policies are experiencing rapid market growth, while those with economic challenges and limited investment in IT infrastructure are facing slower market growth. Moreover, the increasing demand for data storage and processing due to the rise of digitalization and e-commerce is also fueling the growth of the Network Infrastructure 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.