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 the EU-27 nan is experiencing subdued growth due to factors such as saturation in the market, slow adoption of new technologies, and economic uncertainties. However, the convenience and efficiency of online services are still driving the market's growth.

Customer preferences:
As data centers continue to play a critical role in supporting the growing demand for digital services, service providers are increasingly focusing on building scalable and flexible network infrastructures. This is driven by the rise in cloud computing and the need to support a diverse range of applications and workloads. Additionally, with the proliferation of IoT devices and the increasing adoption of edge computing, service providers are also investing in network infrastructure that can handle the growing volume of data and enable faster data processing and analysis.

Trends in the market:
In the EU-27, the Service Provider Network Infrastructure Market is experiencing a surge in demand due to the increasing adoption of cloud services and the rise of 5G technology. This has led to a growing trend of virtualization and network automation, enabling service providers to offer more efficient and scalable services. Additionally, there is a shift towards software-defined networking (SDN) and network functions virtualization (NFV) to improve network flexibility and reduce costs. These trends are significant as they allow service providers to meet the growing demand for digital services and remain competitive in the market. However, there may be potential implications for traditional hardware vendors as the focus shifts towards software-defined solutions.

Local special circumstances:
In EU-27, the Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market is influenced by the region's strict data privacy regulations, which require service providers to comply with stringent security measures. Additionally, the market is impacted by the region's high demand for sustainable and energy-efficient solutions, leading to the adoption of green data centers. Moreover, the market is driven by the region's advanced telecommunications infrastructure and high internet penetration rates, creating a conducive environment for the growth of cloud services and virtualization technologies.

Underlying macroeconomic factors:
The Service Provider Network Infrastructure Market within the Data Center Market is heavily impacted by macroeconomic factors such as technological advancements, government policies, and infrastructure investments. Countries with favorable regulatory environments and robust investments in network infrastructure are experiencing rapid market growth compared to regions with regulatory challenges and limited funding. Moreover, the increasing demand for high-speed connectivity and data storage solutions, driven by the rise of digital transformation and cloud computing, is further propelling the growth of this 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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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