Network Infrastructure - GCC

Revenue in the Network Infrastructure market is projected to reach US$2.25bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.59bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.25%, resulting in a market volume of US$2.77bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$71.29 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 GCC data center market is facing subdued growth due to factors such as slowing economy and political instability. Despite this, the region's increasing reliance on digital technologies and growing awareness of the importance of network infrastructure bode well for the overall market. Additionally, the convenience offered by online health services and the growing demand for both service provider and enterprise network infrastructure are expected to drive growth in the coming years.

Customer preferences: As the demand for high-speed connectivity and efficient data storage continues to rise in the GCC region, there is a growing preference for cloud-based solutions and virtualization technologies. This shift is fueled by the need for scalable and cost-effective IT infrastructure, as well as the desire for remote access and management of data. Additionally, there is a rise in demand for cybersecurity solutions as businesses prioritize protecting their networks and sensitive data from cyber threats.

Trends in the market: In the GCC region, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services, as businesses continue to adopt digital transformation strategies. Additionally, there is a growing trend in the use of AI and machine learning technologies in data centers, enabling more efficient and cost-effective operations. This trend is significant as it offers scalability and flexibility for businesses in the region, and has the potential to improve overall network performance and reduce maintenance costs for data centers. As a result, industry stakeholders are increasingly investing in these technologies to stay competitive in the market.

Local special circumstances: In the GCC region, the Network Infrastructure Market within the Data Center Market is heavily influenced by the high demand for cloud computing services due to the growing digital transformation in various industries. The region's strict data privacy regulations also play a significant role in shaping the market, with companies investing in advanced security measures to comply with these regulations. Additionally, the GCC's strategic location between Asia and Europe makes it a key hub for data center connectivity, driving the demand for network infrastructure solutions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market is heavily impacted by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. For example, countries with strong investment in network infrastructure and favorable regulatory environments are experiencing faster market growth compared to regions with limited funding and regulatory challenges. Additionally, the increasing demand for data center services and the growth of cloud computing are driving the need for advanced network infrastructure, creating opportunities for market growth.

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.