Network Infrastructure - Malaysia

Malaysia

Revenue in the Network Infrastructure market is projected to reach US$0.73bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.53bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.35%, resulting in a market volume of US$0.82bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$40.41 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure market in Malaysia is seeing moderate growth due to factors such as increasing demand for digital transformation, rising awareness on data security, and the convenience of online services. However, the subdued growth rate can be attributed to challenges faced by both Service Provider and Enterprise sub-markets, such as regulatory barriers and slow adoption of advanced technologies.

Customer preferences: The increasing demand for cloud-based services has led to a rise in the adoption of Software-Defined Networking (SDN) and Network Function Virtualization (NFV) in the data center market. This trend is driven by the need for flexible and agile network infrastructure to support the growing number of connected devices and data-intensive applications. Additionally, with the rise of remote working and online learning, there is a growing preference for secure and reliable network connectivity, further driving the demand for advanced network infrastructure solutions.

Trends in the market: In Malaysia, the Network Infrastructure Market within the Data Center Market is seeing a shift towards the adoption of cloud-based solutions and software-defined networking (SDN). This trend is driven by the need for greater scalability, flexibility, and cost-effectiveness in managing data center networks. Additionally, there is a growing demand for edge computing and 5G infrastructure, which requires robust network infrastructure. These developments have significant implications for industry stakeholders, including data center operators, network equipment providers, and cloud service providers, as they need to continuously innovate and upgrade their offerings to meet the evolving needs of the market.

Local special circumstances: In Malaysia, the Network Infrastructure Market within the Data Center Market is heavily influenced by the government's push for digital transformation and the country's strategic location for international connectivity. The market is also shaped by the multicultural and multilingual environment, requiring providers to cater to diverse customer needs. Additionally, regulations on data privacy and cybersecurity play a critical role in shaping the market, with increasing emphasis on compliance and risk management driving investments in network infrastructure.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Malaysia is greatly impacted by macroeconomic factors such as the country's overall economic health, government fiscal policies, and global economic trends. Malaysia's growing economy and stable political climate have led to an increase in investment and development within the data center sector. Additionally, the country's strong focus on digital transformation and technological advancements has fueled the demand for network infrastructure solutions in the data center market. Furthermore, the rising demand for cloud-based services and the increasing adoption of big data analytics are also driving the growth of the network infrastructure market in Malaysia.

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.