Network Infrastructure - Southeast Asia

Southeast Asia

Revenue in the Network Infrastructure market is projected to reach US$7.58bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$5.63bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.24%, resulting in a market volume of US$8.89bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$21.81 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Network Infrastructure Market in Southeast Asia is experiencing subdued growth, influenced by factors such as increasing competition among service providers and enterprises, as well as the slow adoption of digital technologies in the region. However, with a rising demand for online services and a growing awareness of the benefits of digital infrastructure, the market is expected to see significant growth in the coming years.

Customer preferences: The demand for faster and more reliable network infrastructure in Southeast Asia has been driven by the region's rapid digital transformation. This has resulted in a surge in demand for cloud services, leading to increased investments in data center infrastructure. Additionally, with the rise of e-commerce and online activities, there is a growing need for low-latency networks to support real-time transactions and connectivity. As a result, there has been a shift towards investing in high-speed fiber optic networks and 5G technology to meet the evolving demands of consumers and businesses.

Trends in the market: In Southeast Asia, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud services and colocation facilities. This is driven by the increasing adoption of digital technologies, such as IoT and AI, in various industries. Additionally, there is a growing trend towards edge computing, as companies seek to improve latency and bandwidth for their applications. These trends are expected to continue on an upward trajectory, bringing significant opportunities for data center providers, network equipment vendors, and cloud service providers. However, they also pose challenges in terms of infrastructure investment and management, as well as data security and privacy concerns. As such, industry stakeholders must carefully navigate these trends to ensure sustainable growth in the long run.

Local special circumstances: In Southeast Asia, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's rapidly growing digital economy. Countries like Singapore and Malaysia have strong government support for digital transformation, leading to a high demand for data center services. In Indonesia, the market is driven by the increasing adoption of cloud computing and the government's initiatives to improve internet connectivity. In Vietnam, the market is shaped by the country's young and tech-savvy population, driving the demand for advanced network infrastructure solutions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Southeast Asia is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in network infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited technological development. Additionally, the increasing demand for cloud services and the rise of IoT devices are driving the need for robust network infrastructure to support data transfer and storage. These factors, combined with the growing digital economy in Southeast Asia, are expected to drive the growth of the Network Infrastructure Market within the Data Center Market in the coming years.

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.