Service Provider Network Infrastructure - North America

Revenue in the Service Provider Network Infrastructure market is projected to reach US$40.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.32%, resulting in a market volume of US$57.95bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$159.50 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 North America is experiencing subdued growth due to various factors such as increasing competition, slow adoption of digital technologies, and regulatory challenges. Despite the convenience offered by online services, the market's growth rate remains modest.

Customer preferences: In the Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market, there is a growing demand for cloud-based services as companies look to streamline their operations and reduce costs. This trend is driven by the increasing adoption of remote work and the need for reliable and secure connectivity. Additionally, there is a shift towards software-defined networking (SDN) and network function virtualization (NFV) as businesses seek more flexible and scalable solutions for their network infrastructure needs.

Trends in the market: In North America, the Service Provider Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based networking solutions. This trend is driven by the increasing adoption of cloud computing and the need for scalable and flexible network infrastructure. As a result, there is a growing focus on software-defined networking (SDN) and network function virtualization (NFV) technologies. This shift towards virtualized, software-based networking is expected to have a significant impact on the market, as it offers cost savings, improved network performance, and greater agility for service providers. Additionally, the emergence of 5G networks is further driving the demand for advanced network infrastructure solutions in the Service Provider Market, as it enables higher speeds and greater data capacity. These trends are expected to continue in the coming years, presenting significant opportunities for industry stakeholders to innovate and stay ahead in the highly competitive market.

Local special circumstances: In North America, the Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by the region's advanced technological capabilities and strong demand for high-speed, reliable network connectivity. Additionally, regulatory policies and practices, such as net neutrality laws, have a significant impact on the market's competitive landscape. Furthermore, the presence of major tech giants, such as Google and Amazon, in the region drives the adoption of cutting-edge networking solutions, such as software-defined networking (SDN) and network function virtualization (NFV).

Underlying macroeconomic factors: The Service Provider Network Infrastructure Market of the Network Infrastructure Market within the Data Center Market in North America is heavily influenced by macroeconomic factors such as the global economic outlook, national economic health, and fiscal policies. Countries with strong economic growth and stable fiscal policies are expected to experience higher demand for network infrastructure services, as businesses and organizations invest in their digital capabilities. Additionally, factors such as government initiatives to improve digital infrastructure and the increasing adoption of cloud computing are also driving the growth of the market in North America.

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.