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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Market

Region

Region comparison

Currency

Analyst Opinion

The MENA Network Infrastructure market is experiencing subdued growth due to factors such as slow adoption of digital technologies, limited health awareness, and varying levels of convenience among online services. This is evident in the sub-markets of Service Provider Network Infrastructure and Enterprise Network Infrastructure. However, with increasing awareness and investment from both public and private sectors, the market is expected to witness significant growth in the near future.

Customer preferences: The rising adoption of cloud-based solutions in the MENA region has resulted in a growing demand for robust and reliable network infrastructure within data centers. As businesses become increasingly reliant on digital operations, there is a greater focus on the scalability and security of network infrastructure. Additionally, the growing trend towards remote work and virtual collaboration has highlighted the need for high-speed connectivity and low latency in network infrastructure to ensure uninterrupted communication and productivity.

Trends in the market: In the MENA region, there is a growing trend towards integrating artificial intelligence (AI) technology within data center network infrastructure. This has led to the implementation of AI-based network management solutions, such as automated network configuration and predictive maintenance, to improve network efficiency and reduce downtime. Additionally, there is a focus on developing a more robust and interconnected network infrastructure, with the use of advanced technologies like software-defined networking (SDN) and network function virtualization (NFV). These developments have significant implications for industry stakeholders, as they can help facilitate the growth of smart cities and the Internet of Things (IoT) market in the region. They also highlight the need for data center providers to continuously innovate and adapt to changing market dynamics to remain competitive.

Local special circumstances: In the MENA region, the Network Infrastructure Market within the Data Center Market is heavily influenced by the constantly evolving regulatory landscape. With varying levels of government involvement, the market is shaped by differing degrees of privatization and competition. Additionally, cultural norms and preferences heavily influence the demand for data center services, with some countries showing a stronger preference for locally-owned facilities. These factors contribute to a unique marketplace, requiring tailored solutions to meet the specific needs of the region.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in MENA is impacted by various macroeconomic factors, including technological advancements, government regulations, and investment in infrastructure. Countries with favorable regulatory environments and strong investment in network infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited financial resources. The increasing demand for digital transformation and the rise in data-driven industries are also contributing to the growth of the market in MENA. Moreover, the region's growing population and expanding IT sector are creating a significant demand for network infrastructure solutions, driving the market's expansion.

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.