Network Infrastructure - Europe

Europe

Revenue in the Network Infrastructure market is projected to reach US$63.46bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$44.65bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.98%, resulting in a market volume of US$77.13bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$151.80 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 Europe is experiencing significant growth and transformation, driven by various factors influencing the industry.

Customer preferences: Customers in Europe are increasingly demanding faster and more reliable network infrastructure to support their digital needs. With the rise of remote work, online education, e-commerce, and digital entertainment, there is a growing need for robust network infrastructure to ensure seamless connectivity and high-speed data transfer.

Trends in the market: In countries like Germany and the UK, there is a noticeable trend towards the deployment of 5G networks to meet the increasing demand for mobile data and support the Internet of Things (IoT) ecosystem. This trend is driven by the need for higher bandwidth, lower latency, and improved network reliability. Additionally, there is a growing focus on network virtualization and software-defined networking (SDN) to enhance network flexibility and scalability.

Local special circumstances: In Eastern European countries such as Poland and Romania, there is a unique emphasis on upgrading legacy network infrastructure to align with Western European standards. This presents opportunities for network infrastructure providers to offer modern solutions and technologies to support the digital transformation in these regions. Additionally, regulatory frameworks and government initiatives play a crucial role in shaping the network infrastructure market in Europe, with policies promoting investments in broadband expansion and network modernization.

Underlying macroeconomic factors: The overall economic stability and digital readiness of European countries influence the pace of network infrastructure development. Countries with strong economic growth and high digital adoption rates tend to invest more in upgrading their network infrastructure to support the growing digital economy. Moreover, partnerships between telecommunications companies, technology providers, and government entities are essential for driving innovation and accelerating the deployment of advanced network solutions across Europe.

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.