Network Infrastructure - Hong Kong

Hong Kong

Revenue in the Network Infrastructure market is projected to reach US$0.84bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.60bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.92%, resulting in a market volume of US$0.97bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$224.00 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 Hong Kong is seeing moderate growth due to factors such as the rising demand for digital technologies, increasing awareness of the importance of network infrastructure, and the convenience of online services. The market's growth rate is being impacted by various challenges, including limited space in the city and high costs of implementing new infrastructure. As a result, the market is experiencing subdued growth, but opportunities for expansion are still present, especially in the Enterprise Network Infrastructure sub-market.

Customer preferences: With the rise of cloud computing and increasing demand for data storage and processing, the Network Infrastructure Market within the Data Center Market in Hong Kong has witnessed a significant shift towards edge computing solutions. This trend is driven by the need for faster data processing and reduced latency, as well as the growing adoption of Internet of Things (IoT) devices. Additionally, the increasing focus on environmental sustainability has resulted in a growing demand for energy-efficient data center solutions, leading to the adoption of green data center technologies such as liquid cooling systems.

Trends in the market: In Hong Kong, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation and the need for remote work solutions. This trend is expected to continue, with more businesses relying on cloud-based solutions for their operations. This has significant implications for industry stakeholders, as it presents opportunities for growth and innovation in the data center and network infrastructure market. Additionally, the rise of edge computing and 5G technology is expected to further drive the demand for network infrastructure, as businesses seek to improve their connectivity and data processing capabilities. This presents potential opportunities for partnerships and collaborations between data center providers and network infrastructure companies.

Local special circumstances: In Hong Kong, the Network Infrastructure Market within the Data Center Market is heavily influenced by the city's status as a major global financial hub. The demand for high-speed and reliable network connectivity is driven by the presence of numerous multinational corporations and financial institutions. Additionally, Hong Kong's compact geography and high population density pose unique challenges for infrastructure development, leading to the adoption of innovative solutions such as underground data centers. Furthermore, the city's strict data privacy laws and regulations also play a significant role in shaping the network infrastructure market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Hong Kong is heavily impacted by macroeconomic factors such as technological advancements, government policies, and foreign investment. As a global financial hub, Hong Kong has a strong economy and favorable regulatory environment, attracting foreign investments and driving market growth. Additionally, the increasing adoption of cloud computing and data-intensive technologies in various industries is fueling the demand for robust network infrastructure, further contributing to the market's growth. However, factors such as high real estate costs and limited land availability pose challenges for data center development in Hong Kong, impacting the overall market performance.

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.