Service Provider Network Infrastructure - G7

Revenue in the Service Provider Network Infrastructure market is projected to reach US$73.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.21%, resulting in a market volume of US$98.65bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$181.30 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 G7 nan is experiencing subdued growth due to various factors such as limited investments, slow technology adoption, and market saturation. Despite the convenience offered by online services, the growth rate remains low.

Customer preferences: With the rise of cloud computing and virtualization, there has been a growing demand for software-defined networking (SDN) and network function virtualization (NFV) solutions in the Service Provider Network Infrastructure Market. This shift towards virtualized network infrastructure is driven by the need for greater agility and flexibility in managing network resources, as well as reducing costs and improving operational efficiency. Additionally, the rise of 5G technology is expected to further drive the adoption of SDN and NFV in the coming years, as service providers look to meet the increasing demand for high-speed and low-latency connectivity.

Trends in the market: In the Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market, there is a growing trend of implementing software-defined networking (SDN) and network functions virtualization (NFV) technologies. These advancements are enabling service providers to improve network agility and flexibility, reduce costs, and offer new services to customers. Additionally, there is an increasing demand for network automation and orchestration solutions, driven by the need for faster service delivery and enhanced customer experience. These trends are expected to continue, with a focus on innovation and digital transformation in the industry. This presents significant opportunities for industry stakeholders to stay competitive and meet the evolving needs of their customers.

Local special circumstances: In Japan, the Service Provider Network Infrastructure Market within the Data Center Market is influenced by the country's advanced technological capabilities and high demand for data-centric services. The market is also heavily regulated, with strict data privacy laws and government control over network infrastructure. Additionally, Japan's unique geographical landscape, with its high population density and susceptibility to natural disasters, drives the need for resilient and reliable network infrastructure solutions. These factors contribute to a highly competitive and rapidly evolving market for service providers in Japan.

Underlying macroeconomic factors: The growth of the Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investments in digital technologies are seeing faster market growth compared to those with regulatory challenges and limited funding. Additionally, the increasing demand for cloud-based services and the rise of 5G networks are driving the need for robust network infrastructure in data centers to support the growing data traffic and digital transformation efforts globally.

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.