Network Infrastructure - Switzerland

Switzerland

Revenue in the Network Infrastructure market is projected to reach US$1.38bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$0.77bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.61%, resulting in a market volume of US$1.57bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$269.90 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 Switzerland is facing subdued growth due to factors such as high initial investment, growing preference for cloud services, and increasing competition from established players. However, the market continues to grow as a result of the increasing demand for reliable and high-speed network infrastructure, driven by the need for enhanced connectivity and data management in both the Service Provider and Enterprise sub-markets.

Customer preferences: There has been a growing demand for sustainable and energy-efficient data center solutions in Switzerland. This trend is influenced by the country's commitment to environmental protection and the rising cost of energy. As a result, there is a significant focus on renewable energy sources, such as hydropower, to power data centers. Additionally, companies are implementing innovative cooling technologies and utilizing virtualization to reduce energy consumption, demonstrating a shift towards more eco-friendly practices in the network infrastructure market.

Trends in the market: In Switzerland, the Network Infrastructure Market within the Data Center Market is seeing a shift towards software-defined networking (SDN) and network function virtualization (NFV) technologies. This trend is driven by the need for more agile and scalable networks to support the increasing demand for data and cloud services. It also allows for easier management and automation of network infrastructure. This trajectory is significant for industry stakeholders as it offers cost savings, improved performance, and better security. However, it also presents challenges such as integration with legacy systems and the need for skilled personnel. Industry players must adapt to these trends to stay competitive and meet the evolving needs of their customers.

Local special circumstances: In Switzerland, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's highly developed and stable economy. The market is also driven by the strict regulations and data privacy laws, making Switzerland a popular location for data centers and cloud services. The country's strategic location in Europe also adds to its appeal for international data center companies. Additionally, the high demand for renewable energy and sustainable practices also drives the adoption of green data center solutions in Switzerland.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Switzerland is influenced by various macroeconomic factors. The country's strong economic health, stable political environment, and favorable business policies make it an attractive destination for data center investments. Furthermore, the government's focus on developing robust network infrastructure and promoting digital transformation has created a favorable environment for market growth. Additionally, the increasing need for data storage and management, driven by the growing digital economy and the adoption of emerging technologies like cloud computing, is also contributing to the growth of the Network Infrastructure Market in Switzerland.

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.