Network Infrastructure - Europe

Europe

Revenue in the Network Infrastructure market is projected to reach €58.23bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of €40.98bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.82%, resulting in a market volume of €70.23bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach €139.30 in 2024.
In global comparison, most revenue will be generated in China (€58,330m 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 Europe is currently experiencing subdued growth, impacted by factors such as slow adoption of digital technologies in the Service Provider Network Infrastructure sub-market and budget constraints in the Enterprise Network Infrastructure sub-market. However, increasing health awareness among consumers and the convenience of online health services may drive growth in the future.

Customer preferences: As digitalization continues to transform the data center market, consumer preferences are shifting towards hybrid and multi-cloud solutions for increased flexibility and scalability. This trend is driven by the need for efficient management of complex network infrastructure and the emergence of edge computing, which enables faster data processing and reduced latency. Additionally, the adoption of software-defined networking (SDN) and network function virtualization (NFV) is gaining traction, enabling more agile and cost-effective network management.

Trends in the market: In Europe, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards software-defined networking (SDN) solutions. This trend is driven by the need for increased flexibility and scalability in data centers, as well as the growing adoption of cloud computing. SDN enables centralized control and management of network resources, leading to improved network performance and cost savings. Additionally, there is a growing demand for network virtualization and automation, which are key components of SDN. This trend is likely to continue as data centers become more complex and dynamic, and industry stakeholders will need to adapt to stay competitive in the market.

Local special circumstances: In Europe, the Network Infrastructure Market within the Data Center Market is heavily influenced by the region's strict data privacy laws, such as the General Data Protection Regulation (GDPR). This has led to a focus on data security and compliance, with companies investing in advanced network infrastructure solutions. Additionally, the increasing demand for cloud services and the rise of Internet of Things (IoT) devices are driving the growth of the market. In countries like Germany and France, there is also a strong emphasis on energy efficiency and sustainability, leading to the adoption of green data center solutions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Europe is influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investments in network infrastructure are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for data storage and processing due to the rise in digitalization and the adoption of cloud computing is driving the growth of the market in Europe.

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.