Network Infrastructure - South America

South America

Revenue in the Network Infrastructure market is projected to reach US$6.74bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$4.95bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.31%, resulting in a market volume of US$7.93bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$32.64 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m in 2024).

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 America is experiencing subdued growth, impacted by factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in providing online services. This trend is seen in both the Service Provider and Enterprise sub-markets.

Customer preferences: The increasing adoption of cloud computing and virtualization technologies has led to a growing demand for software-defined networking (SDN) and network function virtualization (NFV) solutions in the South American data center market. This trend is driven by the need for agile and cost-effective network infrastructure to support the growing volume of data and applications. Additionally, the rise of 5G networks and the Internet of Things (IoT) is expected to further fuel the demand for advanced SDN and NFV solutions in the region.

Trends in the market: In South America, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards cloud-based solutions and virtualization. This trend is driven by the increasing demand for efficient and scalable data storage and management solutions. Additionally, there is a growing focus on sustainability and energy efficiency, leading to the adoption of green data center technologies. These trends have significant implications for industry stakeholders, as they require investments in infrastructure and training to keep up with the evolving market demands. Furthermore, they provide opportunities for service providers to offer innovative solutions and cater to the evolving needs of businesses in the region.

Local special circumstances: In South America, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's unique geographical and regulatory factors. For example, the mountainous terrain of the Andes can pose challenges for building data centers, leading to innovative solutions such as underground facilities. Additionally, different countries have varying regulations on data protection and privacy, impacting the demand for data center services. Brazil, for instance, has a large and growing digital economy, creating a strong demand for data center infrastructure.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in South America is greatly impacted by macroeconomic factors such as government investment in digital infrastructure, technological advancements, and national economic health. Countries with strong government support and investment in digital infrastructure are experiencing faster market growth compared to regions with limited funding. Furthermore, the increasing demand for data centers due to the growing use of digital technologies and the rise of cloud computing is also driving the growth of the Network Infrastructure Market in South America. Additionally, the region's political stability and favorable regulatory environment play a significant role in attracting investments and driving market growth.

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.