Network Infrastructure - Canada

Canada

Revenue in the Network Infrastructure market is projected to reach US$4.18bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$2.93bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.72%, resulting in a market volume of US$4.78bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$191.90 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m 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 within the Data Center Market in Canada is growing at a subdued rate due to factors such as slow adoption of digital technologies in the Enterprise Network Infrastructure sub-market, and challenges faced by Service Provider Network Infrastructure sub-market in meeting the increasing demands for reliable and secure network infrastructure. However, rising awareness of the benefits of digital networking and the convenience offered by online services are expected to drive growth in the coming years.

Customer preferences: With the growing trend towards remote work and online education, there has been a significant increase in demand for reliable and high-speed network infrastructure within the data center market in Canada. This shift is driven by the need for seamless connectivity and access to data-intensive applications and services. Additionally, the rise of Internet of Things (IoT) devices and the adoption of cloud computing have further fueled the demand for robust network infrastructure to support the growing data needs of businesses and consumers.

Trends in the market: In Canada, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for cloud-based services, with more businesses adopting hybrid cloud solutions to optimize their network infrastructure. Additionally, there is a growing trend of utilizing software-defined networking (SDN) and network function virtualization (NFV) technologies to enhance network flexibility and efficiency. These trends signify a shift towards a more agile and scalable network infrastructure, with potential implications for industry stakeholders such as increased competition and the need for continuous innovation to meet evolving customer demands.

Local special circumstances: In Canada, the Network Infrastructure Market within the Data Center Market is primarily driven by the country's vast geographical landscape and harsh weather conditions. This has led to the development of advanced and resilient network infrastructure solutions to ensure reliable connectivity. Additionally, the country's strict data privacy laws and regulations have influenced the adoption of secure and compliant network infrastructure technologies, making Canada an attractive market for data center providers.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Canada is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With a strong national economy and increasing global demand for data center services, Canada is experiencing significant growth in this market. Additionally, the country's favorable regulatory environment and robust investment in digital infrastructure are further driving the demand for network infrastructure solutions. As the world becomes increasingly reliant on digital technologies, Canada's strong economic health and strategic investments in this sector will continue to propel the growth of the Network Infrastructure Market within 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.