Market Insights Technology Data Center Network Infrastructure

Service Provider Network Infrastructure - EU-27

EU-27

Revenue in the Service Provider Network Infrastructure market is projected to reach US$31.16bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.76%, resulting in a market volume of US$37.47bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$138.90 in 2024.
In global comparison, most revenue will be generated in China (US$45,360m in 2024).

Key regions: United Kingdom, Japan, India, United States, Germany

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Analyst Opinion

The Service Provider Network Infrastructure market in EU-27 is experiencing significant growth and development driven by various factors.

Customer preferences: Customers in the EU-27 region are increasingly demanding faster and more reliable network infrastructure to support their growing digital needs. With the rise of technologies such as 5G, Internet of Things (IoT), and cloud computing, service providers are under pressure to deliver high-performance networks that can handle the increasing data traffic and provide seamless connectivity.

Trends in the market: One of the key trends in the Service Provider Network Infrastructure market in the EU-27 is the deployment of 5G networks. Service providers are investing heavily in upgrading their infrastructure to support 5G technology, which offers faster speeds and lower latency. This trend is driven by the growing demand for high-speed mobile internet and the need to support emerging technologies such as autonomous vehicles and smart cities. Another trend shaping the market is the shift towards software-defined networking (SDN) and network functions virtualization (NFV). These technologies allow service providers to virtualize network functions and automate network management, leading to cost savings and increased flexibility. As a result, service providers in the EU-27 are increasingly adopting SDN and NFV solutions to improve their network efficiency and agility.

Local special circumstances: In addition to these global trends, there are also some local special circumstances influencing the Service Provider Network Infrastructure market in the EU-27. For example, regulatory requirements and data privacy laws in the region are driving service providers to invest in secure and compliant network infrastructure. This has led to an increased focus on cybersecurity and data protection measures to ensure that customer data is safe and secure. Furthermore, the diverse regulatory landscape in the EU-27 presents challenges for service providers operating in multiple countries within the region. Each country may have different regulations and requirements, making it essential for service providers to navigate these complexities while ensuring compliance and maintaining high-quality service delivery.

Underlying macroeconomic factors: The growth of the Service Provider Network Infrastructure market in the EU-27 is also influenced by underlying macroeconomic factors such as economic stability, technological innovation, and government initiatives. The EU's push towards a digital single market and initiatives to promote connectivity and digital infrastructure are driving investments in network infrastructure across the region. Additionally, the increasing competition among service providers is leading to innovation and the development of new services to meet customer demands and stay ahead in the market.

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.