Network Infrastructure - Indonesia

Indonesia

Revenue in the Network Infrastructure market is projected to reach €2.10bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of €1.56bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.88%, resulting in a market volume of €2.54bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach €14.81 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 Data Center Market in Indonesia is experiencing subdued growth in its Network Infrastructure segment, influenced by factors such as limited investments in network infrastructure by both service providers and enterprises. However, the market still holds potential for growth due to the increasing demand for digital technologies and online services, driven by the country's growing economy and rising digitalization efforts.

Customer preferences: The demand for reliable and secure network infrastructure within the data center market in Indonesia is on the rise, as more businesses and consumers shift towards digital solutions and cloud-based services. This trend is driven by the need for remote data management and accessibility, especially in light of the ongoing pandemic. Additionally, the increasing adoption of Internet of Things (IoT) devices and technologies is also contributing to the growth of the network infrastructure market in the data center industry.

Trends in the market: In Indonesia, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand due to the increasing adoption of cloud computing and the Internet of Things (IoT). This has led to a growing trend of using Software-Defined Networking (SDN) solutions to manage and optimize network traffic. Additionally, with the rise of e-commerce and digital payments in the country, there is a need for robust network infrastructure to support these services. These trends indicate a shift towards a more interconnected and digitalized society, presenting opportunities for industry stakeholders to provide innovative solutions and services. However, it also highlights the need for continuous investment in network infrastructure to meet the growing demand and ensure reliable connectivity for businesses and consumers.

Local special circumstances: In Indonesia, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's unique geographical and cultural factors. With its vast archipelago and diverse population, the demand for reliable and efficient network infrastructure is high. Additionally, government regulations and policies aimed at promoting digital transformation and supporting the growth of technology companies have also played a major role in shaping the market. These factors have led to the emergence of local data center providers and the adoption of advanced networking technologies to meet the growing demand for data storage and processing capabilities in the country.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Indonesia is greatly impacted by macroeconomic factors such as government policies, technological advancements, and investment in digital infrastructure. As the country continues to experience strong economic growth and increased investments in digital technologies, the demand for efficient network infrastructure within data centers is also rising. Additionally, the growing adoption of cloud computing and big data analytics is further driving the need for robust and reliable network infrastructure to support these technologies. Moreover, with the rise of e-commerce and digital services, there is a growing need for secure and fast data transmission, further boosting the demand for network infrastructure in the data center 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.