Network Infrastructure - EU-27

EU-27

Revenue in the Network Infrastructure market is projected to reach US$44.53bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$31.16bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.77%, resulting in a market volume of US$53.57bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$198.50 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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Market

Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure Market in the EU-27 is experiencing moderate growth due to factors such as limited investments in Service Provider and Enterprise Network Infrastructure, and increasing competition in the market. This is mainly driven by the slow pace of digital transformation in the region, which has resulted in subdued growth rates. However, rising demand for efficient connectivity solutions and increasing adoption of cloud-based services are expected to drive future growth in this market.

Customer preferences: As the demand for data storage and processing continues to rise, consumers are increasingly looking for efficient and reliable network infrastructure solutions. This trend is driven by the growing adoption of cloud computing and the need for high-speed connectivity. Additionally, the emergence of 5G technology is expected to further fuel the demand for robust network infrastructure, as it enables faster data transfer and supports the growing number of connected devices. This shift towards advanced network infrastructure solutions is also influenced by the increasing digitalization of businesses and the growing reliance on data-driven decision making.

Trends in the market: In the EU-27, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, as businesses prioritize digital transformation and remote work capabilities. This has led to an increase in investments in network infrastructure, including software-defined networking (SDN) and network function virtualization (NFV). Additionally, there is a growing trend of utilizing edge computing to improve latency and network efficiency. These developments are significant as they enable organizations to operate more efficiently and flexibly, but also pose challenges for industry stakeholders to keep up with evolving customer needs and technological advancements.

Local special circumstances: In Europe, the Network Infrastructure Market within the Data Center Market is heavily influenced by the EU's strict data protection regulations, such as the General Data Protection Regulation (GDPR). This has led to a heightened focus on data security and privacy, driving the demand for advanced network infrastructure solutions. Additionally, the region's high adoption of cloud computing and IoT technologies has created a need for robust and reliable network infrastructure to support these digital transformations. Furthermore, the diverse cultural and linguistic landscape of the EU presents unique challenges for network infrastructure providers, requiring them to tailor their solutions to cater to the specific needs of each country.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in the EU-27 is greatly impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong support for digital transformation and significant investments in network infrastructure are experiencing higher growth in the market compared to regions with limited digital infrastructure development. Moreover, the increasing digitization of businesses and the growing demand for cloud-based services are driving the demand for network infrastructure in the data center market.

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.