Market Insights Technology Data Center Network Infrastructure

Service Provider Network Infrastructure - Europe

Europe

Revenue in the Service Provider Network Infrastructure market is projected to reach €40.98bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.95%, resulting in a market volume of €49.75bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach €98.06 in 2024.
In global comparison, most revenue will be generated in China (€41,630m in 2024).

Key regions: United Kingdom, Japan, India, United States, Germany

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Analyst Opinion

The Service Provider Network Infrastructure Market in Europe is experiencing subdued growth due to factors such as slow adoption of digital technologies and limited health awareness among consumers. Online health services offer convenience, but growth is impacted by these challenges.

Customer preferences: As the demand for faster internet speeds and reliable connectivity continues to increase, there is a growing trend towards virtualization and software-defined networking (SDN) in the Service Provider Network Infrastructure Market. This is driven by the need for greater flexibility and scalability in managing network resources, as well as reducing operational costs. Additionally, the rise of 5G technology is expected to further drive the adoption of SDN in service provider networks, as it enables faster and more efficient data transfer.

Trends in the market: In Europe, the Service Provider Network Infrastructure Market within the Network Infrastructure Market is experiencing a shift towards software-defined networking (SDN) and network function virtualization (NFV). This trend is driven by the need for more flexible and efficient network infrastructure, as well as the increasing demand for cloud services. As a result, providers are investing in SDN and NFV technologies to improve network agility and reduce costs. This trend is expected to continue, with industry experts predicting a significant increase in SDN and NFV adoption in the coming years. This will have a major impact on industry stakeholders, who will need to adapt to these new technologies and business models to remain competitive in the market. Additionally, this trend is also creating opportunities for new players to enter the market and offer innovative solutions.

Local special circumstances: In Europe, the Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by the region's strict data privacy regulations, such as the General Data Protection Regulation (GDPR). This has led to a higher demand for secure and compliant network infrastructure solutions. Additionally, the diverse cultural and linguistic landscape of Europe has created a need for localized network infrastructure solutions that cater to the unique needs of each country. Furthermore, the region's heavy investment in renewable energy sources has also driven the demand for green and energy-efficient network infrastructure solutions.

Underlying macroeconomic factors: The Service Provider Network Infrastructure Market within the Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with robust digital infrastructure and government support for network development are experiencing higher market growth compared to regions with limited access to technology and government funding. The increasing demand for reliable and efficient network infrastructure to support the growing digital economy is also a major driver of market growth in this sector.

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.