Market Insights Technology Data Center Network Infrastructure

Enterprise Network Infrastructure - Japan

Japan

Revenue in the Enterprise Network Infrastructure market is projected to reach €2.92bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 11.17%, resulting in a market volume of €4.46bn by 2028.
The average Spend per Employee in the Enterprise Network Infrastructure market is projected to reach €43.42 in 2024.
In global comparison, most revenue will be generated in the United States (€11,940m in 2024).

Key regions: United States, Japan, China, Italy, Indonesia

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Analyst Opinion

The Enterprise Network Infrastructure market in Japan is experiencing significant growth and development.

Customer preferences: Japanese businesses are increasingly adopting advanced network infrastructure solutions to support their operations. With the rise of digital transformation and the increasing reliance on cloud-based services, there is a growing demand for robust and secure network infrastructure that can handle the increasing data traffic and provide seamless connectivity. Japanese enterprises are also looking for scalable and flexible solutions that can easily adapt to their changing business needs.

Trends in the market: One of the key trends in the Enterprise Network Infrastructure market in Japan is the adoption of software-defined networking (SDN) and network function virtualization (NFV) technologies. SDN allows for centralized management and control of the network, enabling businesses to optimize network performance, improve security, and reduce operational costs. NFV, on the other hand, enables the virtualization of network functions, allowing businesses to deploy and manage network services more efficiently. These technologies are gaining traction in Japan as businesses seek to improve network agility and reduce complexity. Another trend in the market is the increasing adoption of cloud-based networking solutions. Japanese enterprises are leveraging cloud services to enhance their network infrastructure capabilities, such as software-defined wide area networking (SD-WAN). SD-WAN enables businesses to optimize network performance and reduce costs by intelligently routing traffic over multiple network connections, including MPLS, broadband, and LTE. This allows for improved application performance, increased network flexibility, and enhanced security.

Local special circumstances: The Enterprise Network Infrastructure market in Japan is also influenced by the unique characteristics of the country's business landscape. Japan has a large number of small and medium-sized enterprises (SMEs), which often have limited IT resources and expertise. As a result, there is a growing demand for managed network services that can provide SMEs with the necessary network infrastructure and support without the need for significant upfront investments or dedicated IT staff. This presents an opportunity for service providers to offer comprehensive network solutions tailored to the specific needs of SMEs.

Underlying macroeconomic factors: The growth of the Enterprise Network Infrastructure market in Japan is supported by several macroeconomic factors. Japan has a highly developed telecommunications infrastructure and a strong focus on technology and innovation. The government's initiatives to promote digital transformation and the adoption of advanced technologies further drive the demand for enterprise network infrastructure solutions. Additionally, the increasing globalization of Japanese businesses and the need for seamless connectivity with overseas offices and partners contribute to the growth of the market. In conclusion, the Enterprise Network Infrastructure market in Japan is experiencing significant growth and development driven by customer preferences for advanced, scalable, and flexible network solutions. The adoption of SDN, NFV, and cloud-based networking technologies, along with the unique characteristics of the Japanese business landscape, are shaping the market. The underlying macroeconomic factors, such as the country's advanced telecommunications infrastructure and government initiatives, further contribute to the growth of the 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.