Network Infrastructure - Eastern Europe

Eastern Europe

Revenue in the Network Infrastructure market is projected to reach US$4.46bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$3.39bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.35%, resulting in a market volume of US$5.26bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$37.74 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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Market

Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure Market in Eastern Europe has been experiencing modest growth, influenced by factors such as increasing adoption of digital technologies, growing need for reliable data centers, and rising demand for efficient network solutions in both service provider and enterprise segments. However, the market's growth rate is subdued due to challenges such as limited infrastructure investments and slow adoption of advanced technologies.

Customer preferences: As the demand for cloud-based services continues to grow in Eastern Europe, there has been a noticeable shift towards software-defined networking (SDN) and network function virtualization (NFV) in the Network Infrastructure Market within the Data Center Market. This trend is driven by the need for more flexible and scalable solutions, as well as the desire for cost savings and improved efficiency. Additionally, the increasing adoption of Internet of Things (IoT) devices and edge computing is also influencing the market, as businesses seek to enhance their connectivity and data processing capabilities.

Trends in the market: In Eastern Europe, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, as organizations look to modernize their IT infrastructure. Additionally, there is a growing trend towards edge computing, as businesses seek to improve latency and reduce data transfer costs. These trends are significant as they highlight the need for efficient and reliable network infrastructure in the data center market. Potential implications for industry stakeholders include the need for investment in advanced network technologies and partnerships with cloud service providers to meet the increasing demand.

Local special circumstances: In Eastern Europe, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's unique geographical and regulatory circumstances. For example, countries like Russia and Ukraine have large land masses and harsh climates, leading to a greater demand for reliable and robust network infrastructure solutions. Additionally, the different government regulations and policies in each country can impact the development and adoption of data center and network infrastructure technologies. This creates a diverse and dynamic market landscape, with varying levels of investment and growth potential across different countries in the region.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Eastern Europe is greatly impacted by macroeconomic factors such as the region's economic stability, government policies and investments, and global economic trends. Countries with strong economic growth and favorable fiscal policies tend to have a higher demand for data center infrastructure, as businesses and organizations invest in expanding their digital capabilities. Furthermore, the growing adoption of cloud computing and the increasing reliance on data-driven technologies are driving the need for robust network infrastructure in the region. Overall, the market is expected to witness significant growth due to the favorable macroeconomic environment and the increasing demand for data center services in Eastern Europe.

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.