Network Infrastructure - NAFTA

NAFTA

Revenue in the Network Infrastructure market is projected to reach US$58.86bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$40.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.38%, resulting in a market volume of US$84.03bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$230.70 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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Region comparison

Currency

Analyst Opinion

The Network Infrastructure market within the Data Center Market in NAFTA is experiencing subdued growth due to factors such as increasing competition, shifting consumer demands, and the emergence of alternative technologies. Despite this, the market is still expected to grow as Service Provider and Enterprise Network Infrastructure continue to invest in upgrading their networks to support the growing demand for data and cloud services.

Customer preferences: As businesses and individuals become more reliant on cloud-based services and remote work, the demand for robust and secure network infrastructure within data centers has increased. This trend is further accelerated by the rise of smart cities, Internet of Things (IoT) devices, and 5G technology, which require high-speed and low-latency connectivity. Additionally, with the increasing concerns around data privacy and security, there is a growing preference for locally hosted data centers within the NAFTA region.

Trends in the market: In the NAFTA region, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services, as businesses and organizations shift towards digitalization. This trend is being driven by the increasing need for remote work solutions and the adoption of hybrid cloud environments. This trajectory is significant as it highlights the importance of robust and scalable network infrastructure in supporting these services. It also has implications for stakeholders in the industry, as they will need to invest in advanced networking technologies to meet the evolving demands of their customers.

Local special circumstances: In the NAFTA region, the Network Infrastructure Market within the Data Center Market is heavily influenced by the mature telecommunications industry and strong government support for digital transformation. In the US, the market is driven by the high demand for cloud services and the presence of major tech giants. In Canada, the market is shaped by the growing adoption of advanced technologies in industries such as finance and healthcare. In Mexico, the market is fueled by the increasing use of mobile devices and the government's efforts to improve internet connectivity in rural areas.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market is greatly impacted by macroeconomic factors such as technological advancements, government policies, and investment in network 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 funding. The increasing demand for cloud-based services and the growing trend of digital transformation across industries are also driving the growth of the market. Additionally, the rise of emerging technologies such as artificial intelligence and the Internet of Things is creating a need for robust and efficient network infrastructure, further fueling market 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.