Network Infrastructure - Northern Europe

Northern Europe

Revenue in the Network Infrastructure market is projected to reach US$5.46bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$3.61bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.52%, resulting in a market volume of US$6.49bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$295.40 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 Northern Europe is seeing steady growth, driven by factors such as increasing demand for digital technologies, growing awareness of the importance of network infrastructure in both service provider and enterprise sectors, and the convenience of online services. The market is expected to continue its average growth rate, influenced by factors such as technology advancements, government initiatives, and the increasing need for efficient data center management.

Customer preferences: As the demand for cloud-based services and digital transformation continues to rise, there is a growing preference for network infrastructure solutions that can support high-speed connectivity and low-latency data transmission. This shift is driven by the need for efficient and reliable communication between data centers, as well as the increasing adoption of IoT devices and edge computing. Additionally, there is a growing focus on sustainability and energy efficiency in the data center industry, leading to a rise in demand for green network infrastructure solutions.

Trends in the market: In Northern Europe, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services, resulting in a growing number of data centers being built. This trend is driven by the increasing adoption of digital transformation strategies by businesses and the rise of IoT devices. As a result, there is a growing need for high-speed, reliable network infrastructure to support the data traffic. This trend is significant as it highlights the importance of a robust network infrastructure in the data center market and has implications for industry stakeholders, such as network equipment providers and data center operators, to invest in and develop advanced networking solutions to meet the growing demand.

Local special circumstances: In Northern Europe, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's focus on sustainability and energy efficiency. This has led to the adoption of green data centers and renewable energy sources, such as wind and hydro power. Additionally, the region's strict data privacy laws have resulted in the development of highly secure data centers, attracting businesses looking for secure hosting solutions. The high demand for cloud services and the presence of major tech companies have also contributed to the growth of the market in Northern Europe.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Northern Europe is heavily influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in digital infrastructure. Countries with strong government support and investments in digital infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for cloud services and the growing adoption of IoT devices are driving the need for robust network infrastructure in data centers to support these technologies.

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.