Network Infrastructure - Japan

Japan

Revenue in the Network Infrastructure market is projected to reach US$13.83bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$10.25bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.51%, resulting in a market volume of US$18.08bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$199.90 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 in Japan's Data Center market is experiencing moderate growth, influenced by factors such as increasing demand for digital technologies, rising awareness about health, and the convenience of online health services. However, the growth rate is subdued due to factors like slow adoption of new technology and high costs associated with upgrading existing infrastructure.

Customer preferences: The rapid growth of cloud computing and the Internet of Things (IoT) has led to an increase in demand for advanced network infrastructure within the Data Center Market in Japan. This is driven by the need for reliable and efficient connectivity to support the increasing use of data-intensive applications and services. Additionally, with the rise of e-commerce and mobile payments in Japan, consumers are placing a higher value on secure and fast network connections, leading to a greater demand for network infrastructure upgrades and expansions.

Trends in the market: In Japan, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for edge computing solutions. This trend is driven by the increasing adoption of IoT devices and the need for low-latency data processing. Additionally, there is a growing focus on energy efficiency and sustainability in data centers, leading to the implementation of green network infrastructure solutions. These trends are significant as they allow for faster and more efficient data processing, while also reducing the environmental impact of data centers. Industry stakeholders should take note of these trends and invest in edge computing and green network infrastructure technologies to stay competitive in the market.

Local special circumstances: In Japan, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's unique geographical and cultural factors. With limited land availability, data centers are often built vertically, leading to innovative designs and efficient use of space. Additionally, strict regulations on data privacy and security have resulted in the development of advanced encryption and security measures, making Japan a leader in secure data storage and management. The country's cultural emphasis on efficiency and reliability also drives the demand for high-quality network infrastructure solutions.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Japan is significantly impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Japan, being a global leader in technology, has a strong focus on digitalization and is continuously investing in advanced network infrastructure to support the growing demand for data center services. Additionally, the country's stable economic health and favorable regulatory environment have created a conducive market for data center operators, further fueling the growth of the Network Infrastructure 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.