Service Provider Network Infrastructure - United States

Revenue in the Service Provider Network Infrastructure market is projected to reach US$35.75bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.86%, resulting in a market volume of US$52.20bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$206.30 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 the United States is experiencing subdued growth, impacted by various factors such as increasing competition, economic uncertainty, and slow adoption of new technologies. Despite this, the market is expected to grow steadily due to rising demand for reliable and efficient network infrastructure within the Data Center Market.

Customer preferences: With the rise of remote work and virtual meetings, there has been a growing demand for reliable and secure network infrastructure among service providers in the data center market. This has led to an increased focus on cloud-based solutions and software-defined networking, as companies look to improve network performance and flexibility. Additionally, the pandemic has accelerated the adoption of edge computing, as service providers seek to reduce latency and improve the user experience for their customers.

Trends in the market: In the United States, the Service Provider Network Infrastructure Market within the Data Center Market is experiencing a shift towards Software-Defined Networking (SDN) and Network Functions Virtualization (NFV) solutions. This is driven by the need for greater agility, scalability, and cost-effectiveness in managing network infrastructure. Additionally, there is a growing demand for edge computing capabilities to support emerging technologies such as 5G, Internet of Things (IoT), and Artificial Intelligence (AI). These trends are expected to continue, presenting opportunities for vendors to offer innovative solutions and for service providers to enhance their network offerings to meet evolving customer needs.

Local special circumstances: In the United States, the Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by the country's advanced technological landscape and established regulatory framework. With a high demand for data center services and a strong focus on data privacy and security, the market is driven by investments in cutting-edge networking technologies. Additionally, the cultural emphasis on efficiency and speed has led to a competitive landscape, with service providers constantly innovating to meet the demands of customers.

Underlying macroeconomic factors: The growth of the Service Provider Network Infrastructure Market within the Data Center Market is also influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in network infrastructure. Countries with favorable regulatory environments and strong investment in digital technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing adoption of cloud computing and the demand for high-speed internet connectivity are driving the demand for network infrastructure solutions to support the growing digital economy.

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.