Network Infrastructure - EMEA

EMEA

Revenue in the Network Infrastructure market is projected to reach US$71.42bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$50.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.98%, resulting in a market volume of US$86.80bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$68.20 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure Market in EMEA is currently experiencing steady growth, driven by factors such as the increasing demand for digital technologies, growing awareness of network security, and the convenience of online services. However, this growth rate is being impacted by factors such as economic uncertainties and pricing pressures in the Service Provider and Enterprise sub-markets.

Customer preferences: As businesses rapidly transition to remote work and rely heavily on digital connectivity, there is a growing demand for robust and secure network infrastructure solutions in the Data Center Market in EMEA. However, with the rise of data privacy concerns and stricter regulations, there is also a shift towards more localized data centers, catering to regional and cultural preferences for data sovereignty. This trend is expected to continue driving growth in the Network Infrastructure Market, particularly in Europe and the Middle East.

Trends in the market: In EMEA, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for software-defined networking solutions, driven by the increasing adoption of cloud computing and the need for agile and scalable networks. This trend is expected to continue as businesses shift towards hybrid and multi-cloud environments. Additionally, there is a growing focus on data center efficiency and sustainability, leading to the development of energy-efficient networking solutions. These trends present significant opportunities for industry stakeholders, but also pose challenges in terms of integration and security. As the data center market continues to evolve, it will be crucial for companies to adapt and innovate to stay competitive.

Local special circumstances: In EMEA, the Network Infrastructure Market within the Data Center Market is heavily influenced by the strong presence of local telecommunication companies and government regulations. For example, in Germany, the strict data privacy laws have resulted in the demand for secure and localized data storage solutions. In contrast, in the Middle East, the market is driven by the increasing adoption of cloud computing and the need for reliable data connectivity between countries. These unique factors play a crucial role in shaping the EMEA data center market landscape.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in EMEA is impacted by macroeconomic factors such as technological advancements, government policies, and infrastructure investments. Favorable regulatory environments and strong investment in digital infrastructure are driving market growth. Furthermore, the increasing demand for data storage, cloud computing, and digital transformation across industries is fueling the growth of the network infrastructure market in the region. Additionally, the rising adoption of IoT and 5G technologies is expected to further drive the demand for data centers and network infrastructure in the near future.

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.