Network Infrastructure - LATAM

LATAM

Revenue in the Network Infrastructure market is projected to reach US$10.44bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$7.64bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.40%, resulting in a market volume of US$12.34bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$33.79 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 LATAM Data Center market is witnessing slow growth due to factors such as limited investment in Service Provider Network Infrastructure and Enterprise Network Infrastructure, and lack of awareness among enterprises about the benefits of digital technologies. This subdued growth can also be attributed to the high cost of network infrastructure implementation and maintenance. However, increasing demand for cloud services and the emergence of advanced technologies like 5G are expected to drive growth in the coming years.

Customer preferences: The increasing adoption of cloud computing and virtualization has led to a growing demand for network infrastructure in the data center market in LATAM. With the rise of remote work and online education, reliable and high-speed connectivity has become critical. As a result, there is a shift towards software-defined networking and edge computing to improve network performance and reduce latency. Additionally, increasing data center investments by major tech companies in the region are driving the development of advanced network infrastructure solutions to meet the growing demand.

Trends in the market: In LATAM, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, as businesses are increasingly adopting cloud-based solutions for their operations. Additionally, there is a growing trend of using software-defined networking (SDN) and network function virtualization (NFV) technologies to improve network efficiency and reduce costs. This trend is expected to continue in the coming years, with the potential to revolutionize the industry and bring about significant changes in the way networks are designed and managed. Moreover, the rise of data-intensive applications and the increasing adoption of IoT devices are also driving the demand for robust and scalable network infrastructure solutions. As a result, industry stakeholders must stay updated with these trends and adapt their strategies to capitalize on the opportunities presented by this evolving market.

Local special circumstances: In LATAM, the Network Infrastructure Market within the Data Center Market is influenced by the region's topography, which presents a challenge for traditional network connectivity methods. This has led to the rise of innovative solutions, such as satellite and wireless technologies, to overcome connectivity barriers. Additionally, regulatory policies are constantly evolving, affecting the adoption of new technologies and services. For example, Brazil has implemented data localization laws, leading to more investments in local data centers for cloud services. These local factors impact market dynamics and require tailored strategies for success.

Underlying macroeconomic factors: As the demand for data centers and network infrastructure continues to rise in LATAM, macroeconomic factors play a crucial role in shaping the market landscape. Global economic trends, such as the increasing adoption of cloud computing and rising internet penetration, are driving the demand for data centers in the region. Moreover, the national economic health of countries, fiscal policies, and investments in digital infrastructure also impact the growth of the network infrastructure market within the data center market. Favorable regulatory environments and government support for digitalization are propelling market growth, while regulatory challenges and limited funding pose a hindrance. Additionally, the growing digital economy and increasing data consumption, coupled with the rise in connected devices, are further driving the demand for data centers and network infrastructure in LATAM.

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.