Network Infrastructure - Sri Lanka

Sri Lanka

Revenue in the Network Infrastructure market is projected to reach US$236.40m in 2025.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$171.00m in 2025.
Revenue is expected to show an annual growth rate (CAGR 2025-2029) of 5.23%, resulting in a market volume of US$289.90m by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$26.77 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 Sri Lankan Network Infrastructure Market in the Data Center industry has seen moderate growth due to factors such as increasing demand for digital services, growing awareness of healthcare, and the convenience of online services. The mild growth rate is influenced by the sub-markets of Service Provider and Enterprise Network Infrastructure, which cater to different needs and preferences of consumers.

Customer preferences: The increasing adoption of cloud computing and virtualization in the Data Center Market has led to a growing demand for robust and secure network infrastructure solutions. With the rise of remote work and online education, there has been a significant shift towards reliable and high-speed internet connections. This trend is further accelerated by the growing popularity of video conferencing and streaming services, highlighting the importance of a strong and resilient network infrastructure in Sri Lanka.

Trends in the market: In Sri Lanka, there is a growing demand for network infrastructure within the data center market due to the increasing adoption of cloud computing and data-intensive applications. This has led to the emergence of colocation and managed hosting services, as well as the deployment of high-speed networks to support these services. Additionally, with the rise of IoT and smart city initiatives, there is a growing need for robust network infrastructure to support the massive influx of data. This trend is expected to continue in the coming years, presenting opportunities for network infrastructure providers and data center operators in Sri Lanka. The significance of this trend lies in its ability to drive innovation, improve connectivity, and support the growth of digital services in the country. However, it also poses challenges in terms of infrastructure development and management, as well as data security and privacy. Therefore, industry stakeholders must stay updated on the latest network infrastructure technologies and best practices to capitalize on this trend and address potential implications.

Local special circumstances: In Sri Lanka, the Network Infrastructure Market within the Data Center Market is influenced by the country's small size and limited land availability, leading to a high demand for efficient and compact data center solutions. Additionally, the government's focus on developing the country's digital infrastructure, coupled with the increasing adoption of cloud-based services, is driving the growth of the data center market. Furthermore, the country's tropical climate and high seismic activity require data centers to have robust infrastructure and disaster recovery measures in place, making reliability a key factor in the market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Sri Lanka is heavily influenced by macroeconomic factors such as the country's overall economic health, government policies, and global economic trends. With the rise of digital transformation and increasing demand for cloud-based services, the data center market is experiencing rapid growth in Sri Lanka. Favorable government policies, such as tax incentives for data center investments, are also contributing to market growth. Additionally, the country's strong investment in telecommunications infrastructure and increasing internet penetration are driving the demand for network infrastructure within data centers. However, challenges such as limited electricity supply and high costs of land acquisition may hinder 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.