Network Infrastructure - Western Asia

Western Asia

Revenue in the Network Infrastructure market is projected to reach US$4.29bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$3.08bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.80%, resulting in a market volume of US$5.17bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$51.62 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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Market

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Region comparison

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Analyst Opinion

The Western Asian Network Infrastructure Market is facing subdued growth due to factors such as increasing digitization, growing adoption of online services by businesses and consumers, and rising investments in data centers. The Service Provider and Enterprise sub-markets are driving this growth with their demand for efficient and reliable network solutions. However, challenges such as limited infrastructure and regulatory constraints may impact the overall growth rate of the market.

Customer preferences: As the demand for efficient and reliable network infrastructure continues to grow in the Data Center Market, consumers are increasingly prioritizing technologies that offer faster data transfer speeds and improved connectivity. This shift is being driven by the increasing adoption of cloud computing and the need for seamless digital interactions. Additionally, there is a growing preference for sustainable and energy-efficient network solutions, as companies strive to reduce their carbon footprint and costs.

Trends in the market: In Western Asia, there is a growing demand for faster and more reliable network infrastructure within the Data Center Market. As the market continues to expand, there is an increasing focus on using cloud-based solutions to optimize data storage and transmission. This trend is significant as it allows for better connectivity and enhanced efficiency within the data center environment. Additionally, it has implications for industry stakeholders as it presents opportunities for growth and investment in this region. With the surge of big data and IoT devices, the demand for robust network infrastructure in the Data Center Market is expected to continue on a steep trajectory.

Local special circumstances: In the Western Asia region, the Network Infrastructure Market within the Data Center Market is heavily impacted by the unique regulatory environment. Strict government regulations on data privacy and security have led to the demand for advanced network infrastructure solutions, including firewalls and virtual private networks. Additionally, the lack of reliable internet connectivity in some areas has led to the development of innovative solutions such as edge computing to ensure uninterrupted data transmission. These factors set the Western Asia market apart from others and greatly influence the growth and adoption of network infrastructure within the data center market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Western Asia is strongly influenced by macroeconomic factors such as technological advancements, government policies, and investment in IT infrastructure. Countries with strong economic growth and favorable regulatory environments are experiencing faster market growth compared to regions with economic challenges and limited IT funding. Furthermore, the increasing demand for cloud services and the adoption of advanced data center technologies in the region are driving the growth of the Network Infrastructure Market.

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.