Network Infrastructure - Indonesia

Indonesia

Revenue in the Network Infrastructure market is projected to reach US$2.29bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.70bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.03%, resulting in a market volume of US$2.79bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$16.13 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

Indonesia, known for its diverse archipelago and rich cultural heritage, is also experiencing significant growth in its Network Infrastructure market.

Customer preferences: Customers in Indonesia are increasingly demanding faster and more reliable network infrastructure to support their digital activities. With the rise of e-commerce, online gaming, and social media usage in the country, there is a growing need for high-speed internet connections and robust network systems to ensure seamless connectivity.

Trends in the market: One notable trend in the Network Infrastructure market in Indonesia is the rapid expansion of 5G technology. As the government continues to invest in improving digital infrastructure across the country, telecom companies are racing to deploy 5G networks to meet the increasing demand for faster data speeds and lower latency. This trend is not only driven by consumer needs but also by the growing adoption of Internet of Things (IoT) devices and smart technologies in various industries.

Local special circumstances: Indonesia's unique geographical landscape, with its thousands of islands, presents a challenge for network infrastructure development. Companies operating in the market need to overcome obstacles such as building network connectivity in remote areas and ensuring network coverage across diverse terrains. Additionally, factors like regulatory environment and local partnerships play a crucial role in shaping the network infrastructure market in Indonesia.

Underlying macroeconomic factors: The growth of the Network Infrastructure market in Indonesia is also influenced by macroeconomic factors such as GDP growth, government policies, and foreign investments. As the country's economy continues to expand, there is a greater emphasis on digital transformation and connectivity, driving the demand for advanced network infrastructure solutions. Moreover, collaborations between local and international players are key to driving innovation and improving the overall network infrastructure landscape in Indonesia.

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.