Network Infrastructure - South Africa

South Africa

Revenue in the Network Infrastructure market is projected to reach US$0.73bn in 2025.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.52bn in 2025.
Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 2.63%, resulting in a market volume of US$0.81bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$28.85 in 2025.
In global comparison, most revenue will be generated in China (US$69,330m in 2025).

Key regions: India, China, Brazil, Indonesia, Japan

Definition:

The Network Infrastructure market focuses on hardware resources essential for service provider and enterprise networks. This market specifically focuses on solutions designed for the complex networking requirements of businesses and organizations, setting aside options like consumer-grade networking hardware products such as basic WIFI routers and network switches. These network infrastructure components are crucial in environments where reliable and secure connectivity, as well as efficient network operations, are paramount, establishing them as a fundamental part of the IT infrastructure in various industries.

Structure:

The Network Infrastructure market is structured in two markets based on the services model provided by the companies.

Service Provider Network Infrastructure covers the hardware resources of telecommunication service companies that enable wired and wireless network connectivity and communication to transfer voice and data.
Enterprise Network Infrastructure covers the hardware resources that enable wired and wireless network connectivity, communication, operations, and management of enterprises.

Additional Information:

The 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 Network Infrastructure market include companies such as Huawei, HPE, Cisco, and Ericsson.

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Analyst Opinion

The Network Infrastructure Market in South Africa has been experiencing minimal growth, influenced by factors such as the slow adoption of digital technologies, lack of health awareness among consumers, and limited convenience offered by online services. This can be attributed to the sub-markets of Service Provider Network Infrastructure and Enterprise Network Infrastructure, where the growth rate is impacted by the slower pace of digitization and limited investment in infrastructure.

Customer preferences: As the demand for high-speed internet and reliable connectivity continues to rise, there has been a significant increase in investments in network infrastructure within the Data Center Market in South Africa. This trend is driven by the growing adoption of cloud computing and the need for seamless data transfer and storage. Moreover, with the emergence of 5G technology, there is a growing demand for advanced network infrastructure to support the increasing number of connected devices and data-intensive applications. This shift towards more robust and efficient network infrastructure is expected to drive the growth of the Data Center Market in South Africa.

Trends in the market: In South Africa, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based solutions, as businesses increasingly rely on remote work and digital operations. This trend is expected to continue, with an emphasis on secure and scalable networks to support data-intensive applications. Additionally, there is a growing focus on sustainability, with data center operators implementing green initiatives and investing in renewable energy sources. These trends are significant as they drive innovation and efficiency in the market, while also addressing environmental concerns. Industry stakeholders should capitalize on these trends by investing in advanced network solutions and promoting sustainable practices to stay competitive in the evolving market landscape.

Local special circumstances: In South Africa, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's geography and regulatory environment. The vast distances between major cities and the limited availability of reliable internet connectivity in rural areas pose challenges for data center operators. Additionally, the country's strict data privacy laws and regulations require data centers to have stringent security measures in place, driving up costs for network infrastructure. These factors make the South African market unique and create a competitive landscape for data center providers.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in South Africa is impacted by various macroeconomic factors such as economic stability, government policies, and technological advancements. With the rise of digital transformation and cloud computing, there is a growing demand for data center services and network infrastructure to support these technologies. Moreover, the government's focus on developing a robust digital infrastructure and promoting digitalization across various industries is expected to drive the growth of the data center market in South Africa. Additionally, the increasing adoption of IoT, AI, and big data analytics is further propelling the demand for network infrastructure in the country.

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.