Network Infrastructure - D-A-CH

D-A-CH

Revenue in the Network Infrastructure market is projected to reach US$12.16bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$8.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.87%, resulting in a market volume of US$15.86bn by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$230.20 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 D-A-CH is experiencing steady growth and development.

Customer preferences: Customers in the D-A-CH region have a strong preference for reliable and high-speed network infrastructure. They demand seamless connectivity and fast data transfer speeds to support their increasing reliance on digital services and applications. Additionally, customers in this region value security and privacy, and are willing to invest in network infrastructure solutions that offer robust protection against cyber threats.

Trends in the market: One of the key trends in the Network Infrastructure market in D-A-CH is the increasing adoption of cloud computing. Businesses in this region are leveraging cloud-based solutions to enhance their operational efficiency and flexibility. This trend is driving the demand for network infrastructure that can support the high data transfer rates required for cloud-based applications and services. Furthermore, the growing popularity of Internet of Things (IoT) devices is also contributing to the demand for network infrastructure, as these devices require reliable and scalable connectivity to function effectively. Another trend in the Network Infrastructure market in D-A-CH is the shift towards software-defined networking (SDN) and network function virtualization (NFV). SDN and NFV technologies enable businesses to optimize their network infrastructure by virtualizing network functions and centrally managing network resources. This trend is driven by the need for greater agility and cost efficiency in network management.

Local special circumstances: One of the special circumstances in the D-A-CH region is the strong emphasis on data protection and privacy. The General Data Protection Regulation (GDPR) has had a significant impact on businesses operating in this region, as it requires them to implement robust security measures and ensure the protection of personal data. This has led to increased investments in network infrastructure solutions that offer advanced security features and compliance with data protection regulations. Furthermore, the D-A-CH region is known for its highly developed industrial sector, particularly in Germany. This has led to the emergence of Industry 4. 0, which involves the integration of digital technologies into industrial processes. This trend is driving the demand for network infrastructure that can support the connectivity requirements of smart factories and enable the implementation of advanced technologies such as automation, artificial intelligence, and robotics.

Underlying macroeconomic factors: The Network Infrastructure market in D-A-CH is influenced by several macroeconomic factors. The strong economy in this region, particularly in Germany, Switzerland, and Austria, has led to increased investments in digital infrastructure. Businesses are expanding their operations and investing in network infrastructure to support their growth and stay competitive in the global market. Additionally, the increasing digitalization of various industries, such as healthcare, finance, and manufacturing, is driving the demand for network infrastructure in the D-A-CH region. Businesses are realizing the importance of digital transformation in staying relevant and meeting the evolving needs of their customers. This has led to a higher demand for network infrastructure solutions that can support the digitalization efforts of these industries. In conclusion, the Network Infrastructure market in D-A-CH is experiencing growth and development driven by customer preferences for reliable and high-speed connectivity, the adoption of cloud computing and SDN/NFV technologies, special circumstances such as data protection regulations and the emphasis on Industry 4. 0, and underlying macroeconomic factors such as a strong economy and increasing digitalization.

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.