Network Infrastructure - Kuwait

Kuwait

Revenue in the Network Infrastructure market is projected to reach US$75.61m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$52.53m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.75%, resulting in a market volume of US$90.91m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$29.73 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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Currency

Analyst Opinion

The Network Infrastructure Market in Kuwait has been experiencing subdued growth, impacted by factors such as slow adoption of digital technologies, lack of awareness about health among consumers and limited convenience offered by online health services. This is evident in both the Service Provider and Enterprise sub-markets, leading to a slow overall growth rate.

Customer preferences: As data centers become increasingly integral to businesses and organizations, there has been a surge in demand for secure and reliable network infrastructure solutions. This is driven by the need for uninterrupted connectivity and data accessibility, particularly in light of remote work and virtual collaboration becoming the norm. Additionally, there is a growing focus on energy efficiency and sustainability in data center operations, leading to the adoption of green infrastructure and renewable energy solutions.

Trends in the market: In Kuwait, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for edge computing solutions, as businesses require faster and more reliable data processing and storage capabilities. This trend is driven by the increasing adoption of cloud computing and the rise of Internet of Things (IoT) devices. As a result, data centers are shifting towards more decentralized and distributed infrastructure to support edge computing. This trend is significant as it enables businesses to process and analyze data closer to the source, reducing latency and improving overall efficiency. However, it also poses challenges for data center operators in terms of managing and securing the distributed infrastructure. As a response, industry stakeholders are investing in technologies such as Software-Defined Networking (SDN), Network Function Virtualization (NFV), and automation to enhance network agility and security. This trend is expected to continue in the coming years, with more organizations adopting edge computing to meet the growing demand for real-time data processing and analysis.

Local special circumstances: In Kuwait, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's small size and high population density, leading to a focus on compact and efficient infrastructure solutions. Additionally, strict government regulations on data privacy and security drive the demand for advanced networking technologies. The market is also shaped by cultural preferences for reliable and high-speed internet connectivity, creating a demand for robust network infrastructure solutions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Kuwait is impacted by macroeconomic factors such as the country's economic stability, government fiscal policies, and technological advancements. The global trend towards digitization and the increasing demand for cloud computing services are also contributing to the growth of the market. Furthermore, Kuwait's strong investment in its digital infrastructure and efforts to diversify its economy are creating opportunities for the development of the data center market. However, challenges such as regulatory barriers and limited IT infrastructure outside of major cities may hinder market growth.

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.