Network Infrastructure - Portugal

Portugal

Revenue in the Network Infrastructure market is projected to reach US$0.89bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.65bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.56%, resulting in a market volume of US$1.01bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$162.70 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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Market

Region

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Currency

Analyst Opinion

The Network Infrastructure Market in Portugal is experiencing subdued growth due to various factors such as slow adoption of digital technologies, limited health awareness among consumers, and lack of convenience offered by online health services. This is especially evident in the Enterprise Network Infrastructure sub-market, where companies are hesitant to invest in new infrastructure. The Service Provider Network Infrastructure sub-market, on the other hand, has seen modest growth due to increased demand for network services. Overall, the growth rate of the Network Infrastructure Market in Portugal remains subdued, with a need for greater awareness and convenience to drive significant growth.

Customer preferences: As technology continues to play a crucial role in our daily lives, the demand for advanced network infrastructure in the data center market in Portugal is on the rise. With the increasing adoption of cloud computing and Big Data analytics, businesses are looking for efficient and secure ways to manage their data. This has led to a shift towards software-defined networking (SDN) and network function virtualization (NFV) solutions. Additionally, the growing trend of remote work and the need for reliable connectivity has also fueled the demand for robust network infrastructure in the data center market.

Trends in the market: In Portugal, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services, with more businesses adopting hybrid cloud solutions to increase efficiency and scalability. This trend is driven by the need for remote work capabilities and the growing popularity of IoT devices. Additionally, there is a growing focus on sustainability, with data centers implementing green initiatives to reduce their environmental impact. This trend is expected to continue, with potential implications for industry stakeholders such as increased competition and the need for continuous innovation in infrastructure solutions.

Local special circumstances: In Portugal, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's geographic location as a major hub for transatlantic internet traffic. This, coupled with Portugal's robust telecommunications infrastructure, has resulted in a highly competitive market for data center services. Additionally, the country's supportive regulatory environment and growing digital economy have led to a significant increase in demand for data center services. Portugal's strategic location, coupled with its favorable business climate, makes it an attractive destination for international companies looking to establish a presence in Europe.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Portugal is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With the increasing demand for data storage and processing, the country's strong investment in digital infrastructure and favorable regulatory environment have contributed to the growth of the market. Additionally, the country's aging population and rising prevalence of chronic diseases have further fueled the demand for advanced data center solutions to improve healthcare access and outcomes.

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.