Network Infrastructure - LATAM

LATAM

Revenue in the Network Infrastructure market is projected to reach US$10.65bn in 2025.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$7.79bn in 2025.
Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 3.75%, 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$34.18 in 2025.
In global comparison, most revenue will be generated in China (US$69,330m in 2025).

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 LATAM is experiencing moderate growth, influenced by factors such as increasing adoption of digital technologies, rising demand for online services, and the emergence of new enterprises. The subdued growth rate could be attributed to challenges faced by Service Provider and Enterprise Network Infrastructure, such as regulatory barriers and high implementation costs.

Customer preferences: As the demand for high-speed, reliable internet connectivity continues to grow, there has been an increased focus on improving network infrastructure in the Data Center Market in LATAM. This has led to a rise in investments in fiber optic networks and other advanced technologies, such as 5G, to support the growing demand for data transmission. Additionally, with the rise of remote work and online education, there is a growing need for resilient and robust network infrastructure to support seamless virtual collaboration and learning.

Trends in the market: In LATAM, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, driven by the increasing adoption of digital transformation strategies by businesses. This trend is expected to continue as organizations look to improve their agility and reduce costs. Additionally, there is a growing focus on cybersecurity in the region, leading to increased investments in secure and reliable network infrastructure. This trend presents opportunities for industry stakeholders to provide innovative solutions to meet the evolving needs of the market.

Local special circumstances: In Latin America, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's unique geography and cultural diversity. The diverse landscape and varying levels of technological development across countries create challenges for data center providers to build and maintain a robust network infrastructure. Additionally, regulatory differences between countries can also impact market dynamics, with some countries having stricter data protection laws than others. These factors contribute to a fragmented market with different growth rates and opportunities in each country.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in LATAM is heavily influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and financial indicators. Countries with strong economic growth and stable fiscal policies are experiencing higher demand for data center infrastructure, as businesses seek to expand their digital capabilities. Additionally, government investments in digital infrastructure and initiatives to improve internet connectivity are driving the growth of the market. However, countries with economic challenges and unstable regulatory environments may face slower market growth due to limited investments and infrastructure development.

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.