Network Infrastructure - GCC

Revenue in the Network Infrastructure market is projected to reach US$2.33bn in 2025.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.65bn in 2025.
Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 4.42%, 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$72.50 in 2025.
In global comparison, most revenue will be generated in China (US$69,330m in 2025).

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, specifically the Network Infrastructure segment, is experiencing subdued growth due to factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges faced by both Service Provider and Enterprise sub-markets.

Customer preferences: The GCC market is witnessing a rise in demand for network infrastructure solutions that support cloud computing and virtualization. This can be attributed to the growing adoption of remote work and the need for scalable and efficient data storage solutions. Additionally, the increasing use of mobile devices and IoT devices is driving the demand for robust network infrastructure to support the transfer and storage of large amounts of data. This trend is likely to continue as businesses and consumers increasingly rely on digital solutions for communication, entertainment, and productivity.

Trends in the market: In the GCC region, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards cloud-based solutions. This trend is driven by the increasing demand for data storage and processing capabilities, coupled with the need for cost-effective and scalable solutions. Additionally, there is a growing focus on energy-efficient infrastructure and the adoption of green data center practices. This trend is expected to continue, with potential implications for industry stakeholders including improved efficiency and cost savings, as well as the need for specialized skills and expertise in managing and maintaining cloud-based infrastructure.

Local special circumstances: In the GCC region, the Data Center Market is influenced by the unique cultural and regulatory circumstances. The strict data privacy laws in countries like Saudi Arabia and the UAE have resulted in a high demand for data center services. Additionally, the hot and arid climate in the region poses challenges for cooling and energy efficiency, leading to a rise in demand for innovative and sustainable network infrastructure solutions. These factors contribute to the growth of the Network Infrastructure Market within the Data Center Market in the GCC.

Underlying macroeconomic factors: The growth of the Network Infrastructure Market within the Data Center Market is also influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with progressive regulatory environments and robust investment in network infrastructure are experiencing higher market growth compared to regions with regulatory barriers and limited funding. Moreover, the increasing demand for data-driven services and the rise of cloud computing are driving the need for robust 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.