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.

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Analyst Opinion

The Network Infrastructure Market in Malaysia has been experiencing subdued growth due to various factors, including slow adoption of digital technologies by Service Providers and Enterprises, low health awareness among consumers, and limited availability of online services in the country. However, with increasing government initiatives to improve digital infrastructure, the market is expected to witness significant growth in the near future.

Customer preferences: With the rise of remote work and virtual learning, the demand for robust and reliable network infrastructure has increased in Malaysia's data center market. This trend is driven by the need for fast and seamless connectivity, as well as the growing adoption of cloud-based services. Additionally, the increasing use of IoT devices and emerging technologies like 5G and edge computing have further emphasized the importance of a strong network infrastructure. This surge in demand for advanced network capabilities has led to a shift towards greater investments in network infrastructure within the data center market.

Trends in the market: In Malaysia, there is a growing trend towards cloud-based networking solutions in the Network Infrastructure Market within the Data Center Market. This is driven by the increasing adoption of cloud services and the need for scalable and flexible network infrastructure to support the growing demand for data storage and processing. This trend is significant as it allows organizations to optimize their network infrastructure for cost and performance. It also presents opportunities for network infrastructure companies to offer more advanced solutions and services to stay competitive in the market. Furthermore, this trend has implications for stakeholders such as data center operators, cloud service providers, and network infrastructure vendors, who will need to adapt their offerings to meet the evolving needs of their customers.

Local special circumstances: In Malaysia, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's geographical location between major trading hubs in Asia. This has led to a high demand for reliable and robust network infrastructure to support international data traffic. Additionally, Malaysia's diverse cultural landscape has created a need for localized solutions and services in the data center market, leading to collaborations with local players. Furthermore, the government's supportive policies and incentives for data center development have contributed to the growth of the network infrastructure market in Malaysia.

Underlying macroeconomic factors: The growth of the Network Infrastructure Market within the Data Center Market is also influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with strong economic growth and favorable policies for data center development are experiencing higher demand for network infrastructure solutions. In addition, the increasing adoption of cloud computing and the rise of data-driven industries are driving the need for robust network infrastructure to support digital transformation and economic 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.