27 Nov 2019
Posted in Technology
APAC networking market revenue to reach US$145bn by 2023, says GlobalData
The enterprises in the Asia-Pacific (APAC) region continue to focus on digital transformation and increased collaboration amongst their workforce. Against this back drop, the overall network revenue in the APAC region is estimated to grow at a compound annual growth rate (CAGR) of 7.8% between 2018 and 2023 to reach US$145bn, says GlobalData, a leading data and analytics company.
According to GlobalData’s Market Opportunity Forecasts Model, APAC will be the largest region in terms of network revenue, accounting for nearly 34% of the global revenue on networking offerings.
Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “Focus on capital expenditure (CapEx) and operating expenditure (OpEx) reduction, workforce skills enhancement and agile business model adoption to meet future demand are amongst the key drivers for the increased network spending across the region during the outlook period.”
The growth in the APAC region will primarily be driven by three leading countries–China, Japan and India. Together, they will account for more than 72% of the overall network market in the region.
Network services will account for almost 80% of the overall market during the outlook period while ‘hardware and software’ segment is forecast to account for the remaining 20%. Fiber optics and Ethernet are estimated to account for nearly two-thirds of the network services revenue.
Sunil concludes: “5G network deployment, 2020 Summer Olympics in Japan, increasing penetration of technologies facilitating digitalization such as cloud computing, big data, artificial intelligence and automation across different verticals will further provide opportunities for technology vendors and service providers to develop their businesses. This will enable the enterprise buyers to further innovate and upgrade their existing software, infrastructure and services offerings.”