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.

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Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure market in EMEA is facing subdued growth due to various factors such as slow adoption of digital technologies by service providers and enterprises, increasing competition, and economic uncertainties. However, the market is expected to experience growth in the long term, driven by the increasing demand for data centers and the growing need for efficient network infrastructure to support digital transformation. Additionally, rising awareness about the benefits of digital health services and the convenience offered by online platforms is expected to propel market growth.

Customer preferences: The adoption of edge computing is gaining traction in the EMEA region, driven by the increasing demand for low-latency and high-bandwidth applications such as gaming, streaming, and virtual reality. This trend is further fueled by the rise of Internet of Things (IoT) devices and the need for real-time data processing. As a result, there is a growing demand for network infrastructure solutions that can support these emerging technologies and provide reliable connectivity. Additionally, the demand for sustainability in data centers is also influencing the network infrastructure market, with organizations looking for energy-efficient solutions to reduce their carbon footprint.

Trends in the market: In EMEA, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based solutions, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue, as companies prioritize agility and scalability in their IT infrastructure. Additionally, there is a growing focus on sustainability, with a shift towards energy-efficient and green data centers. This presents opportunities for industry stakeholders to innovate and offer eco-friendly solutions, while also addressing the rising demand for cloud-based services.

Local special circumstances: In EMEA, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's increasing focus on data security and privacy regulations. Countries such as Germany and France have strict data protection laws, leading to a higher demand for secure network solutions. In addition, the diversity of languages and cultures within the region requires localized network infrastructure solutions, creating unique challenges for vendors. This has also led to the emergence of local players and partnerships with regional data center providers to better cater to the specific needs of each market.

Underlying macroeconomic factors: The growth of the Network Infrastructure Market within the Data Center Market is also influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with strong economic growth and favorable regulatory environments are experiencing faster market growth compared to regions with economic challenges and limited investments in digital infrastructure. Additionally, the increasing demand for cloud-based services and the rise of digital transformation are driving the need for robust network infrastructure, leading to market growth in EMEA.

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.