Market Insights Technology Data Center Network Infrastructure

Service Provider Network Infrastructure - Germany

Germany

Revenue in the Service Provider Network Infrastructure market is projected to reach US$6.65bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.05%, resulting in a market volume of US$8.10bn by 2028.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$154.20 in 2024.
In global comparison, most revenue will be generated in China (US$33,000m in 2024).

Key regions: United Kingdom, Indonesia, China, Brazil, Germany

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Analyst Opinion

The Service Provider Network Infrastructure market in Germany is experiencing significant growth and development.

Customer preferences: Customers in the Service Provider Network Infrastructure market in Germany are increasingly demanding high-speed and reliable internet connections. With the rise of online streaming, cloud computing, and the Internet of Things (IoT), there is a growing need for faster and more efficient network infrastructure. Customers are also looking for scalable solutions that can accommodate their expanding data needs. Additionally, there is a growing demand for network infrastructure that is secure and can protect against cyber threats.

Trends in the market: One of the key trends in the Service Provider Network Infrastructure market in Germany is the deployment of 5G networks. 5G technology promises faster speeds, lower latency, and higher capacity, which is essential for supporting the increasing number of connected devices and data-intensive applications. This trend is driven by the growing demand for mobile data and the need for faster and more reliable connectivity. Service providers are investing heavily in upgrading their network infrastructure to support 5G technology. Another trend in the market is the adoption of software-defined networking (SDN) and network function virtualization (NFV). SDN and NFV technologies allow service providers to virtualize their network infrastructure and automate network management, making it more flexible, scalable, and cost-effective. This trend is driven by the need to reduce operational costs, improve network efficiency, and enable faster service deployment.

Local special circumstances: Germany has a strong focus on data privacy and security, which has a significant impact on the Service Provider Network Infrastructure market. Customers in Germany are particularly concerned about the security of their data and are demanding network infrastructure that can protect against cyber threats. This has led to the development of advanced security solutions and the implementation of strict data protection regulations. Service providers in Germany need to comply with these regulations and ensure that their network infrastructure meets the highest security standards.

Underlying macroeconomic factors: The growth and development of the Service Provider Network Infrastructure market in Germany are also influenced by underlying macroeconomic factors. Germany is the largest economy in Europe and has a strong industrial base. This drives the demand for network infrastructure to support digital transformation and the adoption of advanced technologies in various industries. Additionally, Germany has a highly skilled workforce and a strong research and development ecosystem, which contributes to the innovation and development of network infrastructure technologies. The government also plays a significant role in supporting the growth of the market through policies and investments in digital 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.