Service Provider Network Infrastructure - Central & Western Europe

Revenue in the Service Provider Network Infrastructure market is projected to reach US$28.13bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.30%, resulting in a market volume of US$34.73bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$162.40 in 2024.
In global comparison, most revenue will be generated China (US$45bn in 2024).

Definition:

The Service Provider Network Infrastructure market focuses on hardware resources for telecommunication service companies, focusing on technologies that enable wired and wireless network connectivity. This market specifically focuses on the essential infrastructure for transferring voice and data, encompassing high-performance routers, switches, servers, and wireless communication devices. It addresses the robust and scalable requirements of professional telecom networks, differentiating itself from consumer-grade networking products. These systems are crucial for maintaining reliable, high-speed communication services, integral to the infrastructure of the global telecommunication industry.

Additional Information:

The Service Provider 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 Service Provider Network Infrastructure market include companies such as Huawei, Cisco, Ericsson, Nokia, ZTE, and Ciena.

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Advanced Routers and Switches for Service Providers, such as Cisco Industrial Services Router, and Cisco Catalyst Switch
Carrier IP Telephony, such as Cisco IP Telephone, and Cisco Unified IP Conference Phone
Microwave Transmission & Mobile Backhaul, such as Ericsson’s Mini-Link, and Nokia’s Wavence Microwave transmission technologies
Wireless Packet Core, such as Cisco Ultra Packet Core, and Ericsson Packet Core Gateway

Private Network Infrastructure, such as TP-Link Basic Router, TP-Link Easy Smart Switches and Google Nest WI-FI
Network Infrastructure Software, such as Microsoft Core Infrastructure SVR STE, and McAfee Internet Security
Network Infrastructure Services, such as IT Support Services, and Home Internet Services Providers (ISPs)

The Service Provider Network Infrastructure Market in Central & Western Europe is experiencing subdued growth due to factors such as slow adoption of digital technologies and limited health awareness. Nonetheless, the convenience offered by online services is driving growth in this market segment.

Customer preferences: There is a growing demand for high-speed and reliable network infrastructure in the Service Provider Network Infrastructure Market within the Data Center Market, driven by the increasing adoption of cloud-based services and digital transformation initiatives. This trend is further accelerated by the rising preference for remote work and virtual collaboration, highlighting the importance of robust and scalable network solutions. Additionally, the growing focus on network security and privacy is prompting service providers to invest in advanced infrastructure to meet evolving consumer needs.

Trends in the market: In Central and Western Europe, there is a growing demand for cloud-based services, leading to an increase in the adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies. This trend is driven by the need for more flexible and scalable infrastructure to support the growing demand for data-intensive applications and services. Service providers are also investing in edge computing and 5G networks to improve network performance and enable faster data processing. These developments have significant implications for industry stakeholders, as they need to adapt to the changing landscape and invest in new technologies to stay competitive.

Local special circumstances: In Central and Western Europe, the Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by the region's strict data privacy laws and regulations. This has led to the development of innovative solutions for secure data storage and transmission, such as edge computing and software-defined networking. Additionally, the high demand for cloud services and increasing adoption of IoT technologies have also contributed to the growth of this market.

Underlying macroeconomic factors: The Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market in Central & Western Europe is heavily influenced by macroeconomic factors such as technological advancements, government regulations, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investments in digital technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for data center services and the growing trend of digital transformation across industries are driving the demand for robust and efficient service provider network infrastructure solutions.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Nothing runs right in companies or corporations today without the proper IT network infrastructure and equipment. IT networking is the construction, design, and use of network equipment to allow groups of computing devices to exchange data with one another, over both wired and wireless networks. The market covers networking hardware, software, and services, including virtual networks, servers, network management, and security.