Network Infrastructure - Ethiopia

Ethiopia

Revenue in the Network Infrastructure market is projected to reach US$74.76m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$56.23m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.20%, resulting in a market volume of US$79.37m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$1.19 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 Network Infrastructure Market in Ethiopia is facing subdued growth due to factors such as limited investment in digital technologies, low health awareness among consumers, and the lack of convenient online services. This has led to a slow growth rate, despite the potential for growth in both the Service Provider and Enterprise sub-markets.

Customer preferences: As internet connectivity continues to expand in Ethiopia, there is a growing demand for network infrastructure within the data center market. This is driven by the increasing use of cloud-based services and the need for reliable and high-speed connectivity. Additionally, with the rise of remote work and online learning, there has been a shift towards digital collaboration and communication tools, further driving the demand for robust network infrastructure. This trend is expected to continue as the country's digital landscape continues to evolve.

Trends in the market: In Ethiopia, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services and colocation solutions. This trend is being driven by the country's rapid economic growth and increasing adoption of digital technologies. As a result, data center operators are expanding their offerings to include hybrid cloud solutions and investing in advanced networking technologies to meet the growing demand. This trend is expected to continue as more businesses in Ethiopia move towards digitalization, presenting significant opportunities for industry stakeholders to capitalize on.

Local special circumstances: In Ethiopia, the Network Infrastructure Market within the Data Center Market is influenced by the country's limited internet connectivity and underdeveloped digital infrastructure. This has created a demand for reliable and efficient network infrastructure solutions. Additionally, strict government regulations and limited competition in the market have also shaped its dynamics. The country's geography, with its rugged terrain and remote areas, also presents unique challenges for building and maintaining network infrastructure, further impacting the market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Ethiopia is greatly influenced by macroeconomic factors such as government investment in infrastructure development, technological advancements, and regulatory support. The country's strong economic growth and increasing focus on digitalization have created a favorable environment for market growth. However, challenges such as limited internet penetration and high costs of internet services hinder the market's potential. Moreover, the growing demand for data storage and processing, driven by the increasing adoption of cloud computing, is also contributing to the growth of the Network Infrastructure Market in Ethiopia.

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.