Network Infrastructure - Southern Africa

Southern Africa

Revenue in the Network Infrastructure market is projected to reach US$0.82bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.58bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.55%, resulting in a market volume of US$0.93bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$28.34 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 Southern Africa is experiencing subdued growth due to factors such as slow investment in Service Provider and Enterprise Network Infrastructure, limited IT budgets, and the high cost of implementing new technologies. However, increasing demand for reliable and efficient data centers, along with the growing trend of digitalization, is expected to drive market growth.

Customer preferences: The Southern African market is witnessing a growing demand for network infrastructure solutions that support the rapid growth of data centers in the region. This trend is driven by the increasing adoption of cloud-based services and the need for reliable connectivity to support the digital transformation of businesses. With the rise of remote work and virtual events, there is also a growing demand for high-speed and low-latency networks to support these activities. Additionally, the increasing use of data-intensive technologies such as AI and IoT is also contributing to the demand for robust network infrastructure solutions.

Trends in the market: In Southern Africa, the Network Infrastructure Market within the Data Center Market is seeing a surge in demand for cloud services, particularly in South Africa and Kenya. This trend is driven by the increasing adoption of digital transformation strategies by businesses and the need for reliable and scalable network infrastructure. Additionally, there is a growing trend of outsourcing data center services to third-party providers, leading to a rise in colocation and managed hosting services. This shift towards cloud-based solutions is significant as it enables businesses to reduce costs, improve efficiency, and access advanced technologies. It also presents opportunities for data center providers to expand their offerings and cater to the evolving needs of their clients. However, this trend also brings challenges, such as the need for robust security measures to protect sensitive data and the need for skilled professionals to manage complex networks.

Local special circumstances: In Southern Africa, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's political and economic landscape. The market is driven by the increasing demand for reliable and secure network infrastructure, especially in countries with rapidly growing economies such as South Africa and Kenya. Additionally, the region's unique geographical challenges, such as limited access to electricity and internet connectivity, have led to the development of innovative solutions, such as mobile data centers and renewable energy-powered facilities. Furthermore, the lack of standardized regulations across the region has created a complex and fragmented market, with varying levels of competition and investment opportunities.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Southern Africa is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong economic growth and supportive regulatory environments are experiencing rapid market growth, while those with limited funding and regulatory challenges are facing slower growth. The increasing demand for data storage and connectivity, driven by the rise of digitalization and e-commerce, is also contributing to the growth of the market. Additionally, the region's growing population and increasing urbanization are creating a need for efficient and reliable network infrastructure, further driving the demand for data centers and related services.

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.