Service Provider Network Infrastructure - Japan

Revenue in the Service Provider Network Infrastructure market is projected to reach US$10.25bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.58%, resulting in a market volume of US$13.44bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$148.10 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Japan is experiencing subdued growth due to factors such as limited investments and slow adoption of digital technologies. Despite rising health awareness, the convenience of online health services has not translated into significant growth.

Customer preferences: As Japan's aging population continues to grow, there is a rising demand for elder care services and solutions. This has led to an increase in the adoption of smart home technology and virtual caregiving platforms, allowing seniors to age in place while still receiving necessary support. Additionally, with the rise of remote work and telecommuting, there is a growing need for reliable and secure network infrastructure to support remote access and collaboration, driving investment in service provider networks.

Trends in the market: In Japan, the Service Provider Network Infrastructure Market within the Data Center Market is experiencing a shift towards cloud-based services, driven by the increasing demand for digital transformation and remote work. Additionally, there is a growing trend of network virtualization, enabling service providers to offer more flexible and scalable solutions to their customers. This trend is significant as it allows for greater agility and cost savings for both service providers and their clients. However, it also presents challenges in terms of data security and network management. As such, industry stakeholders must prioritize investing in robust security measures and network monitoring tools to ensure the reliability and privacy of their services.

Local special circumstances: In Japan, the Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by the country's advanced technology infrastructure, high internet penetration rate, and strong demand for cloud-based services. The market is also shaped by unique cultural factors such as the emphasis on privacy and security, leading to a preference for domestic providers. Additionally, strict regulatory policies around data protection and localization also play a significant role in shaping the market dynamics.

Underlying macroeconomic factors: The Service Provider Network Infrastructure Market within the Data Center Market is greatly impacted by macroeconomic factors such as the overall economic health of Japan, technological advancements, and government policies. With a stable economy and supportive regulatory environment, Japan has seen a surge in demand for network infrastructure from service providers. Additionally, the country's investment in digital transformation and robust healthcare infrastructure has further boosted the market growth. The increasing demand for high-speed data transmission and cloud-based services, coupled with the rising adoption of IoT and 5G technologies, is expected to drive the growth of the Service Provider Network Infrastructure Market in Japan.

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.