Network Infrastructure - G7

Revenue in the Network Infrastructure market is projected to reach US$103.90bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$73.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.18%, resulting in a market volume of US$140.20bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$257.90 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 G7 countries is experiencing subdued growth due to factors such as slow adoption of digital technologies in the Service Provider and Enterprise sub-markets, as well as increasing competition and changing customer preferences. However, the market is expected to see moderate growth in the coming years driven by the rising demand for data center services and the need for efficient and reliable network infrastructure.

Customer preferences: The growing adoption of cloud computing and digital transformation strategies has led to a significant increase in demand for network infrastructure within the data center market. Additionally, the rise of Internet of Things (IoT) devices and edge computing has created a need for robust and reliable network infrastructure to support these technologies. As a result, there has been a shift towards more advanced and scalable network solutions, such as software-defined networking (SDN) and network function virtualization (NFV). This trend is driven by the need for agile and efficient data center operations, as well as the increasing importance of data security and privacy in the age of digital connectivity.

Trends in the market: In G7 countries, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for 5G technology. This trend is driven by the increasing need for high-speed and low-latency connectivity to support emerging technologies such as Internet of Things (IoT) and artificial intelligence (AI). Additionally, there is a growing trend towards edge computing, which requires robust network infrastructure for efficient data processing. This shift towards 5G and edge computing has significant implications for industry stakeholders, as it presents opportunities for network equipment providers and data center operators to expand their services and offerings. Moreover, it reinforces the need for investments in network infrastructure to support the growing demand for data processing and storage.

Local special circumstances: In Japan, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's advanced technology and strong demand for data storage and processing. The government's initiatives for promoting cloud computing and IoT adoption have also boosted the market growth. In Germany, strict data privacy regulations and a strong focus on sustainability have driven the adoption of energy-efficient network infrastructure solutions. Additionally, the country's highly developed telecommunications industry has created a competitive landscape for network infrastructure providers.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with strong economic growth and supportive policies for digital transformation are witnessing a surge in demand for network infrastructure solutions. On the other hand, economic instability and limited investment in digital infrastructure hinder market growth in other regions. Moreover, the increasing demand for data center services, driven by the rise of cloud computing and big data, further fuels the growth of the Network Infrastructure 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.