Network Infrastructure - United States

United States

Revenue in the Network Infrastructure market is projected to reach US$51.96bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$35.75bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.90%, resulting in a market volume of US$76.00bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$299.90 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 Data Center market in the United States has been experiencing mild growth, influenced by factors such as increasing demand for digital infrastructure in both the Service Provider and Enterprise sub-markets, as well as the growing awareness of the benefits of online services in the Network Infrastructure market. This growth is also impacted by the convenience and efficiency offered by digital technologies, driving the market forward.

Customer preferences: With the rise of remote work and online learning, there has been a growing demand for reliable and high-speed network infrastructure in the Data Center Market. This has led to investments in advanced networking technologies such as software-defined networking (SDN) and network function virtualization (NFV). Additionally, there has been an increasing focus on sustainability and energy efficiency in data centers, driving the adoption of green networking solutions. These trends reflect the importance of seamless connectivity and environmental consciousness in the modern digital landscape.

Trends in the market: In the United States, the Network Infrastructure Market within the Data Center Market is experiencing a surge in demand for Software-Defined Networking (SDN) solutions. This trend is driven by the need for more efficient and flexible network management, as well as the growing adoption of cloud computing and virtualization technologies. Additionally, there is a shift towards the use of open-source networking software, which allows for greater customization and cost savings. These trends are significant as they enable organizations to optimize their network infrastructure and improve overall performance. However, they also pose challenges for traditional networking vendors, who may need to adapt their offerings to remain competitive in this evolving market.

Local special circumstances: In the United States, the Network Infrastructure Market within the Data Center Market is heavily influenced by government regulations and policies. The country has strict data privacy laws, which impact the design and operation of data centers. Additionally, the high demand for data storage and processing capabilities, driven by the growing digital economy, has led to the development of advanced network infrastructure solutions. The presence of major technology companies and their need for reliable and secure data centers also plays a significant role in shaping the market dynamics.

Underlying macroeconomic factors: The growth of the Network Infrastructure Market in the United States is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with strong government support and substantial investments in digital infrastructure are experiencing faster market growth compared to regions with limited government support and infrastructure funding. Additionally, the increasing demand for data storage and management, driven by the rise of cloud computing and the proliferation of connected devices, is also contributing to the growth of the Network Infrastructure Market in the United States.

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.