Network Infrastructure - MENA

MENA

Revenue in the Network Infrastructure market is projected to reach US$6.91bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$4.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.23%, resulting in a market volume of US$8.50bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$35.18 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 MENA Data Center Network Infrastructure market is experiencing subdued growth due to factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in providing convenient online services. This is reflected in the slower growth rates seen in both the Service Provider and Enterprise sub-markets.

Customer preferences: With the growing adoption of cloud computing and big data analytics, there has been a significant increase in demand for high-speed and reliable network infrastructure within the Data Center Market in the MENA region. This is driven by the need for efficient data processing and storage, as well as the rise of emerging technologies such as AI and IoT. Additionally, there is a growing trend towards hybrid and multi-cloud environments, as organizations seek to optimize their IT infrastructure and improve scalability and cost efficiency.

Trends in the market: In the MENA region, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, with more businesses shifting towards remote working and digitalization. This has led to an increase in investments in data centers for better connectivity and storage capabilities. Additionally, there is a growing trend of deploying edge computing solutions to improve network efficiency and reduce latency. These trends signal a shift towards a more interconnected and digitalized economy in the region, with implications for industry stakeholders to adapt and innovate in order to meet the evolving needs of businesses.

Local special circumstances: In the MENA region, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's unique regulatory environment. With countries such as Saudi Arabia and the UAE implementing strict data localization laws, data center providers must navigate complex compliance requirements. Additionally, cultural norms and preferences for local data storage and privacy also impact the market. This has led to a rise in partnerships between international data center companies and local players to meet these specific market demands.

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 policies, and investment in digital infrastructure. Countries with favorable business environments and strong investment in network infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for data storage and processing, driven by the growth of e-commerce, cloud computing, and the Internet of Things, is fueling the expansion of the Network Infrastructure Market in the MENA region.

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.