Network Infrastructure - Japan

Japan

Revenue in the Network Infrastructure market is projected to reach US$13.83bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$10.25bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.51%, resulting in a market volume of US$18.08bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$199.90 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

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Analyst Opinion

Japan's Network Infrastructure market is experiencing significant growth and evolution, driven by various factors shaping the industry landscape in the country.

Customer preferences: Customers in Japan are increasingly demanding high-speed and reliable network infrastructure to support their digital activities. With the rise of telecommuting, online education, e-commerce, and digital entertainment, there is a growing need for robust network infrastructure that can handle large volumes of data traffic seamlessly.

Trends in the market: One prominent trend in the Network Infrastructure market in Japan is the rapid deployment of 5G technology. As the country aims to stay at the forefront of technological innovation, telecom companies are investing heavily in 5G infrastructure to provide faster and more reliable connectivity to their customers. This trend is not only driven by consumer demand for better network performance but also by the government's push to enable the implementation of smart cities and Internet of Things (IoT) solutions. Another key trend is the increasing adoption of cloud services and data centers. Businesses in Japan are moving towards cloud-based solutions to enhance scalability, flexibility, and cost-efficiency. This shift is fueling the demand for advanced network infrastructure to support seamless connectivity between on-premises systems and cloud environments.

Local special circumstances: Japan's Network Infrastructure market is characterized by a high level of technological advancement and innovation. The country is home to leading technology companies that are continuously developing cutting-edge solutions to meet the evolving needs of customers. Additionally, Japan has a strong regulatory framework that promotes competition and ensures the quality of network services, driving companies to constantly improve their infrastructure offerings.

Underlying macroeconomic factors: The Network Infrastructure market in Japan is also influenced by macroeconomic factors such as government initiatives, economic stability, and industry collaborations. The government's support for digital transformation initiatives and investments in infrastructure development play a crucial role in driving the growth of the market. Furthermore, partnerships between telecom companies, technology providers, and government agencies are fostering innovation and driving the adoption of advanced network solutions across different sectors.

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.