Network Infrastructure - Egypt

Egypt

Revenue in the Network Infrastructure market is projected to reach US$179.30m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$125.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.13%, resulting in a market volume of US$277.50m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$5.42 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 Egypt is experiencing moderate growth, influenced by factors such as increasing demand for digital technologies, rising awareness about health, and the convenience of online services. The Service Provider and Enterprise Network Infrastructure sub-markets are driving this growth, with mild growth rates due to factors such as limited infrastructure and technological challenges.

Customer preferences: As digital transformation accelerates in Egypt, there is a growing demand for hyperconverged infrastructure solutions in the Network Infrastructure Market within the Data Center Market. This is driven by the need for efficient and flexible data storage and management, as well as the adoption of cloud-based services. Additionally, the rise of e-commerce and digital payments has led to an increased demand for secure and reliable network infrastructure to support online transactions.

Trends in the market: In Egypt, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services. With the increasing adoption of cloud computing, there is a growing trend towards the use of Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) models. This trend is expected to continue as more businesses in Egypt realize the benefits of cost savings, scalability, and flexibility that cloud services offer. This shift towards cloud-based solutions has significant implications for industry stakeholders, including data center providers, as it requires them to invest in robust network infrastructure to support the growing demand for cloud services. Additionally, this trend presents opportunities for service providers to offer specialized services such as managed hosting and colocation services to cater to the specific needs of businesses in Egypt.

Local special circumstances: In Egypt, the Network Infrastructure Market within the Data Center Market is influenced by the country's geographical location and political landscape. Due to its strategic location, Egypt serves as a gateway between Africa and Asia, making it a hub for international connectivity. Additionally, the government's investment in digital transformation and the implementation of regulations promoting data privacy and security have created a favorable environment for data center infrastructure development.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Egypt is impacted by various macroeconomic factors such as government initiatives, technological advancements, and investments in digital infrastructure. With the rise in internet penetration and smartphone adoption, there is a growing demand for data centers to support the increasing data traffic. Moreover, the government's efforts to promote digital transformation and attract foreign investments in the ICT sector are also driving the growth of the data center market in Egypt. However, economic challenges such as inflation and currency devaluation may hinder the market growth in the short term.

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.