Service Provider Network Infrastructure - MENA

Revenue in the Service Provider Network Infrastructure market is projected to reach US$4.96bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.32%, resulting in a market volume of US$6.12bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$25.22 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 MENA is experiencing subdued growth, influenced by factors such as slow adoption of digital technologies, limited health awareness, and lack of convenience in accessing online health services. Despite this, the market continues to show promising potential within the larger Data Center Market in the region.

Customer preferences: As the demand for high-speed internet and reliable connectivity continues to rise in the MENA region, service providers are focusing on expanding their network infrastructure to accommodate this trend. Additionally, there is a growing preference for cloud-based services and virtualization, as businesses look to reduce costs and improve efficiency. This shift towards digitalization is also influenced by cultural values that prioritize convenience and accessibility, leading to a surge in demand for managed services and software-defined networking solutions.

Trends in the market: In MENA, the Service Provider Network Infrastructure Market within the Data Center Market is experiencing a shift towards cloud-based services, as businesses seek to streamline their operations and reduce costs. This trend is expected to continue, with a focus on virtualization and software-defined networking. Additionally, there is a growing demand for high-speed and low-latency networks to support emerging technologies such as 5G and Internet of Things (IoT) devices. These trends are significant for industry stakeholders as they will drive the need for advanced network infrastructure solutions and partnerships with cloud providers. Furthermore, it also presents opportunities for collaboration and innovation in the region's evolving digital landscape.

Local special circumstances: In the MENA region, the Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market is influenced by the region's unique cultural and regulatory circumstances. For example, in Saudi Arabia, strict government regulations have led to the development of secure and reliable data center infrastructure for service providers. In Egypt, the market is driven by the increasing demand for cloud-based services and the government's push for digital transformation. Similarly, in the UAE, the rising adoption of advanced technologies, such as AI and IoT, is driving the growth of the market.

Underlying macroeconomic factors: The Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in network infrastructure. Countries with strong government support and investment in digital infrastructure are experiencing faster market growth compared to regions with limited government funding and regulatory challenges. Additionally, the increasing demand for high-speed connectivity and data storage, driven by the growing adoption of cloud computing and IoT technologies, is also fueling the growth of the market in the MENA region.

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.