Network Infrastructure - Germany

Germany

Revenue in the Network Infrastructure market is projected to reach US$11.20bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$7.66bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.78%, resulting in a market volume of US$13.48bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$245.40 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

Germany, known for its strong economy and technological advancements, has a thriving Network Infrastructure market that is constantly evolving to meet the demands of businesses and consumers.

Customer preferences: Customers in Germany are increasingly prioritizing high-speed and reliable network connections to support their digital activities. With the growing adoption of cloud services, IoT devices, and online streaming platforms, there is a rising demand for robust network infrastructure that can handle large volumes of data traffic efficiently. Security and data privacy are also key concerns for customers in Germany, leading to a focus on network solutions that offer advanced encryption and protection features.

Trends in the market: One notable trend in the Network Infrastructure market in Germany is the shift towards software-defined networking (SDN) and virtualization technologies. These innovations allow for greater flexibility, scalability, and automation in network management, enabling businesses to adapt quickly to changing requirements. Additionally, there is a growing interest in 5G network infrastructure to support the increasing connectivity needs of industries such as manufacturing, automotive, and healthcare. The deployment of 5G networks is expected to revolutionize communication capabilities and drive further digital transformation across various sectors in Germany.

Local special circumstances: Germany's emphasis on data security and privacy regulations, such as the General Data Protection Regulation (GDPR), plays a significant role in shaping the Network Infrastructure market. Companies operating in Germany need to comply with strict data protection laws, which influence their choice of network infrastructure solutions. This has led to a focus on secure and compliant networking technologies that align with the country's regulatory environment. Moreover, Germany's strong industrial base and focus on Industry 4. 0 initiatives have created a demand for network infrastructure that can support the requirements of smart manufacturing and automation.

Underlying macroeconomic factors: The stable economic growth in Germany, coupled with investments in digital infrastructure and connectivity, provides a favorable environment for the Network Infrastructure market to expand. The government's initiatives to promote digitalization across industries and improve broadband connectivity in rural areas further drive the demand for advanced network solutions. Additionally, partnerships between telecommunications providers, technology vendors, and enterprises contribute to the innovation and development of network infrastructure offerings in the country.

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.