Network Infrastructure - Ethiopia

Ethiopia

Revenue in the Network Infrastructure market is projected to reach US$71.62m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$54.68m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 3.12%, resulting in a market volume of US$81.00m by 2028.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$1.15 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 Ethiopia is experiencing significant growth and development.

Customer preferences: Customers in Ethiopia are increasingly demanding faster and more reliable internet connectivity. With the rapid increase in internet penetration and the growing popularity of digital services, such as e-commerce and online entertainment, there is a strong need for robust network infrastructure to support these activities. Additionally, businesses in Ethiopia are also recognizing the importance of having a reliable and efficient network infrastructure to enhance their operations and improve productivity.

Trends in the market: One of the key trends in the Network Infrastructure market in Ethiopia is the increasing deployment of fiber-optic networks. Fiber-optic technology provides faster and more reliable internet connectivity compared to traditional copper-based networks. As a result, there has been a significant investment in expanding fiber-optic networks across the country. This trend is driven by both government initiatives and private sector investments. The government of Ethiopia has recognized the importance of having a strong network infrastructure and has launched several projects to expand the reach of fiber-optic networks. Private companies are also investing in fiber-optic infrastructure to meet the growing demand for high-speed internet connectivity. Another trend in the market is the adoption of 5G technology. 5G promises to deliver faster speeds, lower latency, and greater capacity compared to previous generations of wireless technology. This technology is expected to revolutionize industries such as healthcare, transportation, and manufacturing. In Ethiopia, there is a growing interest in 5G technology, and telecommunications companies are actively exploring the deployment of 5G networks. However, the adoption of 5G technology in Ethiopia is still in its early stages, and it will take time for the infrastructure to be fully developed and for 5G services to become widely available.

Local special circumstances: Ethiopia has a large rural population, and providing network infrastructure to remote areas presents unique challenges. The government has launched initiatives to extend network coverage to underserved areas, but the geographical terrain and lack of infrastructure in these areas make it difficult to provide reliable connectivity. As a result, there is a need for innovative solutions, such as satellite-based internet services, to bridge the digital divide and provide connectivity to remote areas.

Underlying macroeconomic factors: The Network Infrastructure market in Ethiopia is influenced by several macroeconomic factors. The country has been experiencing strong economic growth in recent years, which has led to an increase in disposable income and a growing middle class. This has resulted in an increase in demand for internet services and digital technologies, driving the growth of the Network Infrastructure market. Additionally, the government's focus on digital transformation and the development of the ICT sector has also contributed to the growth of the Network Infrastructure market. The government has implemented policies to attract foreign direct investment in the ICT sector, which has led to increased investment in network infrastructure. In conclusion, the Network Infrastructure market in Ethiopia is experiencing significant growth and development driven by customer preferences for faster and more reliable internet connectivity, the adoption of fiber-optic and 5G technologies, the need to provide connectivity to remote areas, and the underlying macroeconomic factors such as strong economic growth and government support for the ICT sector.

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.