Network Infrastructure - Kenya

Kenya

Revenue in the Network Infrastructure market is projected to reach US$245.10m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$166.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.46%, resulting in a market volume of US$290.50m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$9.23 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

The Network Infrastructure Market in Kenya is experiencing slow growth due to factors such as limited investment in digital technologies, low awareness of the benefits of online services, and the challenges faced by both Service Provider and Enterprise sub-markets. This subdued growth is also impacted by the country's focus on other sectors, such as agriculture and manufacturing.

Customer preferences: The demand for high-speed and reliable network infrastructure in Kenya is on the rise, driven by the country's growing digital economy and increasing adoption of cloud-based services. This trend is further fueled by the rise of remote work and online learning, highlighting the need for robust network connectivity. Additionally, with the proliferation of Internet of Things (IoT) devices and smart technologies, there is a growing demand for network infrastructure that can support the vast amounts of data generated by these devices.

Trends in the market: In Kenya, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, as businesses and government agencies move towards digital transformation. This trend is driven by the need for scalable and cost-effective solutions, as well as the growing adoption of mobile devices and internet connectivity. As a result, there is a significant increase in investments in network infrastructure, including fiber optic cables and data centers. This trend is expected to continue, bringing opportunities for industry stakeholders to provide innovative solutions and services. Additionally, the development of 5G technology in Kenya will further boost the demand for network infrastructure, highlighting the need for continuous innovation and investment in the market.

Local special circumstances: In Kenya, the Network Infrastructure Market within the Data Center Market is influenced by the country's unique geographical and regulatory circumstances. Kenya's strategic location as a major hub in East Africa makes it a prime location for data centers, and the government's push for digital transformation has led to a growing demand for network infrastructure. However, regulatory challenges such as high import duties on IT equipment and limited access to reliable power supply can hinder market growth. Additionally, Kenya's diverse cultural landscape also plays a role in shaping the market, with different regions having varying levels of technological adoption and infrastructure development.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Kenya is impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. The country's strong focus on digital transformation and the growing demand for data storage and management solutions are driving the growth of the market. Additionally, favorable regulatory environments and increasing investments in IT infrastructure are creating a conducive environment for market growth. However, challenges such as limited internet penetration and high costs of data services may hinder the market's growth potential.

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.