Service Provider Network Infrastructure - D-A-CH

Revenue in the Service Provider Network Infrastructure market is projected to reach US$9.35bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.62%, resulting in a market volume of US$11.17bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$168.20 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 D-A-CH nan is experiencing subdued growth due to factors such as slow adoption of digital technologies and limited awareness among consumers. However, the convenience of online services could drive future growth in this market.

Customer preferences: The Service Provider Network Infrastructure Market in the D-A-CH region is witnessing a growing demand for cloud-based solutions, as companies look to optimize their data center operations and reduce infrastructure costs. This is driven by the increasing adoption of hybrid cloud models and the need for flexible and scalable IT infrastructure. Additionally, the rise of edge computing and the Internet of Things (IoT) is also fueling the demand for network infrastructure that can support high-speed data transfer and low-latency connections.

Trends in the market: In D-A-CH, the Service Provider Network Infrastructure Market is experiencing a shift towards software-defined networking (SDN) and network function virtualization (NFV). This trend is driven by the increasing demand for scalable and agile networks to support the growing number of connected devices and data traffic. This shift towards virtualized and programmable networks allows service providers to quickly deploy and manage new services, leading to improved efficiency and cost savings. Additionally, there is a growing focus on network automation and self-service capabilities, allowing service providers to meet the evolving needs of their customers. These trends are significant as they enable service providers to keep up with the rapid pace of technological advancements and remain competitive in the market. However, this shift towards virtualized networks also presents challenges, such as the need for skilled personnel and potential security risks. Therefore, industry stakeholders must carefully navigate this trend to fully capitalize on its benefits.

Local special circumstances: In D-A-CH, the Service Provider Network Infrastructure Market is heavily influenced by the region's strict data privacy laws, which have led to the adoption of secure and compliant network solutions. Additionally, the market is driven by the increasing demand for cloud-based services and the need for high-speed, reliable connectivity. In contrast, the market in the US is dominated by large, established players, while the market in China is experiencing rapid growth due to government initiatives promoting digital transformation.

Underlying macroeconomic factors: The Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market is impacted by macroeconomic factors such as technological advancements, government regulations, and investment in digital infrastructure. Countries with supportive regulatory frameworks and significant investments in digital infrastructure are experiencing faster market growth compared to regions with regulatory obstacles and limited funding. Moreover, the growing prevalence of chronic diseases and aging populations globally are fueling the demand for advanced network infrastructure solutions to enhance data center operations and meet increasing data demands.

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.