Analysis by Type (Public, Private, and Hybrid); by Deployment (Cloud, and On-Premises); and by End-User (IT & Telecom, Retail, Manufacturing, BFSI, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global enterprise communication infrastructure market is estimated to garner a revenue of ~USD 197 Billion by the end of 2035 by growing at a CAGR of ~15% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 71 Billion in the year 2022. The growth of the market can be attributed to the worldwide increasing IT expenditure of companies. For instance, global IT expenditure is projected to hit approximately ~USD 4.9 trillion in 2023, a 5% from 2022. Besides this, the escalating ratio of data traffic is also anticipated to boost the growth of the global enterprise communication infrastructure market during the forecast period.
In addition to these, factors that are believed to fuel the market growth of enterprise communication infrastructure include the rise in the adoption of new technologies such as IoT, cloud reparation, and so on in enterprise communication. These emerging technologies are efficient in faster communication and network within the applications. For instance, around 15% of new enterprise IT infrastructure is estimated to deploy edge computing by the end of 2023. In addition to this, the dynamic surge in the adoption of edge computing is also estimated to propel market growth in the coming years.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~15% |
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Base Year Market Size (2022) |
~ USD 71 Billion |
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Forecast Year Market Size (2035) |
~ USD 197 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global enterprise communication infrastructure market is segmented and analyzed for demand and supply by type into public, private, and hybrid. Out of these three types of segments, the private segment is estimated to gain the largest market share of about ~71% in the year 2035. The growth of the segment can be attributed to the potential of lowering the dependence on a specific service provider, along with delivering full control over operating processes. In addition to this, a private network fulfills the best requirements of an organization regarding security concerns. For instance, in the third quarter of 2022, the worldwide ratio of organizations and government departments deployed private networks exceeded around 978, up from 884 at the end of June and 728 at the end of 2021. Moreover, the advantage of customization as per the requirements of an organization is another major factor that is projected to gain the traction of businesses for the increased implementation of the private network during the projected time frame. Hence, this factor is also anticipated to drive segment growth during the forecast period.
The global enterprise communication infrastructure market is also segmented and analyzed for demand and supply by deployment into the cloud, and on-premises. Amongst these two segments, the on-premises segment is expected to garner a significant share of around ~65% in the year 2035. The growth of the segment can be attributed to the dynamically rising preference for in-house IT solutions, along with having full-fledged control over hardware and software platforms for upgradation, and configuration.
Our in-depth analysis of the global enterprise communication infrastructure market includes the following segments:
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By Type |
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By Deployment |
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By End-User |
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The North American enterprise communication infrastructure market, amongst the market in all the other regions, is projected to hold the largest market share of about ~42% by the end of 2035. The growth of the market can be attributed majorly to the early adoption of technologies in the United States, the high implementation of the cloud, and rising investments in innovating and adding additional services to the offerings by IT companies in the region. For instance, as of now, more than 50% of government organizations in the United States are using the cloud. The public spending on cloud in the country was also evaluated to rise by more than 17% by the end of 2021. In addition to this, the strong presence of major market players, coupled with the expanding deployment of 5G technology is also estimated to propel the market growth further in the region during the forecast period.
The Asia Pacific enterprise communication infrastructure market, amongst the market in all the other regions, is projected to hold the second largest share of about ~21% during the forecast period. The growth of the market can be attributed majorly to the rapid technological advancements in the IT sector, and the rising adoption of 5G in numerous nations of the region. For instance, South Korea gained the greatest 5G accessibility in the Asia Pacific region in 2022, with users connected to 5G grossing nearly 31.8% of the time. Moreover, the growing establishment of technological startups and robust rate of industrialization in the region are also estimated to fuel the market growth in the region in the coming years. In addition to this, the surging ratio of cloud computing, and the growing trend of BYOD in organizations are also estimated to skyrocket the growth of the enterprise communication infrastructure market in the APAC region during the projected time frame.
Further, the market in the European region, amongst the market in all the other regions, is projected to hold a considerable share of about ~16% by the end of 2035. The growth of the market can be attributed majorly to the increasing penetration of the internet, coupled with the surging deployment of advanced networking solutions by enterprises are also estimated to spur the market growth. Moreover, numerous organizations have been using managed IT solutions in the European region and this ratio is estimated to rise more in the upcoming years. This as a factor, is also estimated to add more growth opportunities to the enterprise communication infrastructure market in the region over the forecast period.
Cisco Systems, Inc. has partnered with NTT Ltd. to develop the technology and manage services that would help enterprise customers to successfully implement Private 5G and improve objectives. By employing Intel hardware and NTT's first-to-market Managed Private 5G solution, the organizations hope to boost edge connection.
Avaya Inc. disclosed its strategic collaboration with ALE International to enhance the cloud migration of its clients. This partnership is anticipated to broaden the availability of Avaya's OneCloud CCaaS (Contact Center as a Service) configurable services to ALE's worldwide client base, and also the same is estimated to provide ALE's digital networking solutions available to Avaya customers globally.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Worldwide growing penetration of smartphones, massive surge in the adoption of artificial intelligence, and growing implementation of Wi-Fi 6 technology are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2023 – 2035.
Ans: Rise in data security threats across the globe, poor IT infrastructure in developing regions, and lack of awareness about data breaches in emerging nations are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Microsoft Corporation, Cisco Systems, Inc., DXC Technology Company, Zyxel Communications Corp., VMware, Inc., The International Business Machines Corporation (IBM), and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, deployment, end-user, and by region.
Ans: The private segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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