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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Analyst Opinion

The Network Infrastructure Market in the Data Center Market in Kenya has been experiencing moderate growth, influenced by factors such as the increasing demand for digitalization in both service provider and enterprise networks, as well as the growing awareness of the importance of robust network infrastructure. However, the subdued growth rate in the market can be attributed to challenges such as limited investment in infrastructure and slow adoption of new technologies.

Customer preferences: The growing adoption of cloud computing and virtualization solutions is driving the demand for high-speed internet connectivity and reliable network infrastructure in Kenya. With the rise of remote work and e-learning, there is a growing need for robust and resilient data center networks to support the growing demand for online services. Additionally, the emergence of 5G technology is expected to further fuel the demand for advanced network infrastructure to accommodate the increasing data traffic and support emerging technologies such as AI and IoT.

Trends in the market: In Kenya, the Network Infrastructure Market within the Data Center Market is seeing a surge in demand for cloud-based solutions as businesses shift towards remote work arrangements. This trend is expected to continue as companies prioritize digitalization and cost-effective operations. Additionally, with the increasing adoption of Internet of Things (IoT) devices, the need for robust network infrastructure is growing. This presents opportunities for industry stakeholders to offer innovative solutions and services to meet the evolving demands of the market.

Local special circumstances: In Kenya, the Network Infrastructure Market within the Data Center Market is influenced by the country's limited internet connectivity and high data costs. This has led to the development of localized solutions such as micro data centers and cloud-based infrastructure to cater to the needs of smaller businesses and rural populations. Additionally, the government's Digital Economy Blueprint and initiatives such as the National Broadband Strategy have also played a significant role in driving the growth of the data center market in the country.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Kenya is strongly influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. As the country continues to experience economic growth and digital transformation, there is a growing demand for data centers and network infrastructure to support the increasing use of digital technologies. Additionally, Kenya's strategic location and connectivity to global networks make it an attractive market for data center and network infrastructure investments. The government's focus on promoting a favorable business environment and investing in digital infrastructure further supports the growth of this market.

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.