Network Infrastructure - Germany

Germany

Revenue in the Network Infrastructure market is projected to reach US$11.20bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$7.66bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.78%, resulting in a market volume of US$13.48bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$245.40 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 in Germany is experiencing subdued growth, influenced by a variety of factors such as increasing demand for digital technologies, growing awareness of the importance of network infrastructure, and the convenience of online services for both service providers and enterprises.

Customer preferences: The rise of cloud computing and the increasing adoption of Internet of Things (IoT) devices have led to a growing demand for reliable and high-speed network infrastructure within the data center market in Germany. This trend is fueled by the need for seamless connectivity and data transfer, as well as the growing preference for virtualization and software-defined networking. Additionally, with the rise of remote work and online learning, there is a greater emphasis on secure and efficient network infrastructure to support remote access to critical applications and data.

Trends in the market: In Germany, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards more efficient and environmentally friendly solutions. This includes the adoption of renewable energy sources, such as solar and wind, to power data centers. Additionally, there is a growing trend of using artificial intelligence and machine learning to optimize network performance and reduce energy consumption. These developments not only benefit the environment, but also offer cost savings for data center operators. Furthermore, there is a growing demand for edge computing solutions to support the increasing use of Internet of Things (IoT) devices, which require low latency and high bandwidth connections. This trend is expected to continue as IoT adoption increases, presenting opportunities for industry stakeholders to innovate and offer specialized solutions.

Local special circumstances: In Germany, the Data Center Market is experiencing growth due to the country's strict data privacy regulations and high demand for cloud services. This has led to the development of advanced network infrastructure, such as high-speed fiber-optic networks and 5G technology. Additionally, the country's focus on renewable energy sources has influenced the adoption of green data centers, further driving the growth of the Network Infrastructure Market within the Data Center Market.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Germany is influenced by macroeconomic factors such as advancements in technology, government policies, and investments in the digital infrastructure. Germany's strong economy and stable fiscal policies have created a favorable environment for the growth of the data center market. Additionally, the increasing demand for cloud computing and data storage solutions due to the rise in internet usage and digitalization in the country is driving the growth of the network infrastructure market. Moreover, the growing trend of remote working and online activities has further fueled the demand for reliable and secure data centers, leading to the expansion of the market in Germany.

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.