Network Infrastructure - Nigeria

Nigeria

Revenue in the Network Infrastructure market is projected to reach US$531.40m in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$374.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.88%, resulting in a market volume of US$707.10m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$6.80 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 the Data Center Market in Nigeria is witnessing subdued growth due to factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in providing reliable online services. However, the market is expected to grow as the country's overall digital infrastructure improves and the demand for efficient network connectivity increases.

Customer preferences: As digitalization continues to shape the business landscape in Nigeria, there is a growing demand for reliable and efficient network infrastructure within the data center market. This is driven by the increasing use of cloud computing, big data analytics, and Internet of Things (IoT) technologies. Additionally, the emergence of remote work and e-learning due to the COVID-19 pandemic has further accelerated the need for robust network infrastructure to support seamless connectivity and data transfer.

Trends in the market: In Nigeria, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services and solutions. This trend is driven by the growing adoption of digital transformation initiatives and the need for efficient and scalable IT infrastructure. Additionally, there is a rise in investments in fiber optic networks and 5G technology, which will further fuel the growth of the market. These developments have significant implications for industry stakeholders, as they must adapt to the changing landscape and invest in advanced network infrastructure to remain competitive in the market.

Local special circumstances: In Nigeria, the Network Infrastructure Market within the Data Center Market is influenced by the country's geographical and cultural diversity. The vastness of the country and its diverse population create unique challenges for network infrastructure deployment and maintenance. Additionally, Nigeria's regulatory environment has been slow to adapt to the rapid growth of data centers, leading to delays and obstacles in market expansion. These factors contribute to a complex and dynamic landscape that sets the Nigerian data center market apart from others.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Nigeria is heavily influenced by macroeconomic factors such as government initiatives to improve internet connectivity, increasing investments in digital infrastructure, and favorable regulatory policies. With the rising demand for data storage and processing, the government is focusing on building a robust network infrastructure to support the growing digital economy. Additionally, the country's young population and increasing internet penetration rates are driving the demand for data centers, making Nigeria an attractive market for network infrastructure providers.

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.