Network Infrastructure - South Korea

South Korea

Revenue in the Network Infrastructure market is projected to reach €4.24bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of €3.09bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.77%, resulting in a market volume of €4.86bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach €141.80 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 South Korea is experiencing subdued growth in its Network Infrastructure Market. Factors such as the slow adoption of digital technologies in the country and the dominance of traditional healthcare methods are impacting this growth rate. However, the increasing demand for online health services and the growing awareness about health among consumers may drive growth in the future.

Customer preferences: As the demand for reliable and high-speed connectivity continues to grow, there has been a notable shift towards 5G technology in South Korea. This is driven by the country's tech-savvy population and their increasing reliance on mobile devices for work and leisure. Additionally, with the rise of smart cities and the Internet of Things (IoT), there is a growing need for robust network infrastructure to support the vast amount of data being generated and transmitted. This trend is expected to continue as South Korea remains at the forefront of technological advancements.

Trends in the market: In South Korea, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based solutions, as businesses seek to modernize their operations and reduce costs. Additionally, there is a growing trend towards edge computing, driven by the need for faster data processing and reduced latency. These trends signify a shift towards more efficient and agile data center infrastructure, with potential implications for industry stakeholders such as data center providers and IT service providers. They must adapt to this changing landscape to remain competitive and meet the evolving needs of their clients.

Local special circumstances: In South Korea, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's advanced technological infrastructure and high internet penetration rates. This has created a strong demand for high-speed and reliable network connections, driving the growth of the market. Additionally, South Korea's strict regulations on data privacy and security have led to the development of robust data center networks, catering to the growing need for secure data storage and management. Furthermore, the strong government support for the development of 5G technology has further boosted the demand for advanced network infrastructure in the country.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in South Korea is greatly impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With the increasing demand for reliable and efficient network connectivity, South Korea's strong investment in 5G technology and its supportive regulatory environment have propelled the growth of the Network Infrastructure Market. Moreover, the country's thriving economy and favorable business environment have attracted significant investments, further driving the development of the Data Center Market and its network infrastructure.

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.