Market Insights Technology Data Center Network Infrastructure

Service Provider Network Infrastructure - North America

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 7.33%, 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 in China (US$45,360m in 2024).

Key regions: United Kingdom, Japan, India, United States, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Service Provider Network Infrastructure market in North America is witnessing significant growth and evolution driven by various factors.

Customer preferences: Customers in North America are increasingly demanding high-speed and reliable network infrastructure to support their growing digital needs. With the rise of cloud computing, IoT, and 5G technologies, service providers are under pressure to enhance their network capabilities to meet the increasing demands of businesses and consumers.

Trends in the market: In the United States, there is a growing trend towards the deployment of software-defined networking (SDN) and network function virtualization (NFV) technologies. This shift towards virtualized network functions allows service providers to improve network efficiency, scalability, and flexibility while reducing costs. Additionally, there is a noticeable trend towards the adoption of edge computing solutions to reduce latency and improve overall network performance.

Local special circumstances: Canada, on the other hand, is focusing on expanding its broadband infrastructure to bridge the urban-rural connectivity gap. The Canadian government has been investing in initiatives to improve broadband access in remote areas, driving the demand for advanced network infrastructure solutions. Additionally, the country's stringent data privacy regulations are shaping the network infrastructure market, with a strong emphasis on security and compliance.

Underlying macroeconomic factors: The robust economy in North America is fueling investments in network infrastructure expansion and upgrades. As businesses digitize their operations and consumers rely more on online services, service providers are under pressure to invest in cutting-edge network technologies to stay competitive. Furthermore, the increasing adoption of smart devices and digital applications is driving the need for resilient and high-capacity networks across the region.

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.