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 EU-27 is experiencing significant growth and evolution driven by various factors.

Customer preferences: Customers in the EU-27 region are increasingly demanding faster and more reliable network connectivity to support their digital activities. This includes the need for high-speed internet access, seamless data transmission, and robust network security measures to safeguard sensitive information.

Trends in the market: One notable trend in the Network Infrastructure market in the EU-27 is the rapid deployment of 5G technology. As consumers and businesses alike seek faster and more efficient network services, telecom companies are investing heavily in upgrading their infrastructure to support 5G capabilities. This trend is not only driven by consumer demand for enhanced mobile connectivity but also by the growing adoption of Internet of Things (IoT) devices and smart technologies that require low latency and high bandwidth.

Local special circumstances: In addition to the 5G rollout, the EU-27 region is also focusing on improving broadband connectivity in rural and underserved areas. This initiative is part of the European Commission's Digital Agenda, which aims to ensure that all citizens have access to high-speed internet services. As a result, there is a growing emphasis on expanding network infrastructure to bridge the digital divide and promote digital inclusion across the region.

Underlying macroeconomic factors: The development of the Network Infrastructure market in the EU-27 is further influenced by regulatory policies and funding opportunities provided by the European Union. Through initiatives such as the Connecting Europe Facility (CEF) and the European Gigabit Society targets, the EU is supporting investments in digital infrastructure to enhance competitiveness, drive innovation, and stimulate economic growth. These macroeconomic factors play a crucial role in shaping the direction of the Network Infrastructure market in the EU-27 region.

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.