Enterprise Communication Infrastructure Market

Market CAGR for enterprise communication infrastructure is being driven by the surge in demand for advanced communication technologies and the widespread adoption of remote work practices. The increasing necessity to modernize outdated IT communication infrastructure is compelling numerous organizations to allocate investments in the enterprise communication infrastructure market. According to Spiceworks' 2019 State of IT, 89% of surveyed companies anticipate growth or sustained significant budgets for IT in 2019. Furthermore, 56% of companies with over 5,000 employees expressed expectations of increased IT budgets for 2019.

These investments are predominantly driven by the ongoing evolution and application of new technologies, unlocking substantial capacities that were previously deemed non-commercial. Another notable market trend contributing to the growth of enterprise communication infrastructure is the rising penetration of smartphones, attributed to the expanding adoption of Bring Your Device (BYOD) policies. Additionally, the adoption of cloud services remains a significant influence on enterprise expenditures. Cloud-based solutions are aiding organizations in establishing more efficient unified platforms for both internal and external communication. The increasing adoption of cloud services, particularly among SMEs, further propels the ongoing development of the market.

As a result, it is anticipated that throughout the projection period, demand for the Enterprise Communication Infrastructure Market will increase due to the surge in demand for advanced communication technologies and the widespread adoption of remote work practices. Thus, driving the Enterprise Communication Infrastructure Market revenue.

The Global Enterprise Communication Infrastructure Market Industry experiences a notable surge in demand for remote collaboration tools. As organizations increasingly adopt hybrid work models, the need for seamless communication solutions becomes paramount. Tools such as video conferencing and instant messaging platforms facilitate real-time collaboration, enhancing productivity. In 2024, the market is projected to reach 111.8 USD Billion, reflecting a growing recognition of the importance of effective communication in a distributed workforce. This trend is expected to continue, with organizations investing in advanced technologies to support remote work environments.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Enterprise Communication Infrastructure market in North America can be attributed to several key factors. The adoption of state-of-the-art technologies, particularly by multinational corporations, is seen as a driving force for market growth. The increasing trend of remote work is fast-tracking the advancement of routers and switches, expected to drive the expansion of business network infrastructure in North America. The demand for wireless access points further underscores the ongoing modernization of internal infrastructure within businesses.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: ENTERPRISE COMMUNICATION INFRASTRUCTURE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Enterprise Communication Infrastructure Market accounts for the second-largest market share as European companies are actively embracing digital transformation initiatives to enhance competitiveness and boost operational efficiency. In 2022, a substantial 77.7% of enterprises in the EU facilitated remote access to the email system for their staff. Additionally, nearly two-thirds of enterprises (65.0%) reported that their employees had remote access to essential documents, including files, spreadsheets, presentations, charts, and photos. Moreover, over 60% of enterprises enabled employees to access business applications or software remotely, covering areas such as accounting, sales, orders, and CRM.

Large enterprises, in particular, demonstrated a high adoption rate, with 9 out of 10 reporting that their staff had remote access to all three types of ICT systems mentioned. Further, the German Enterprise Communication Infrastructure Market held the largest market share, and the UK Enterprise Communication Infrastructure Market was the fastest-growing market in the European region.

The Asia-Pacific Enterprise Communication Infrastructure Market is expected to grow at the fastest CAGR from 2023 to 2032. Enterprise collaboration solutions have transformed into fundamental components of business communications and collaboration. The proliferation of the cloud has enhanced the accessibility of office collaboration tools by eliminating the management requirements associated with on-premises equipment. The rise of remote work opportunities has significantly increased the adoption of cloud collaboration. Cloud technology enables employees located in different geographical areas to engage in real-time collaboration seamlessly.

According to a 2020 survey conducted by Yotta, approximately 37% of Indian businesses had their digital infrastructure hosted in the cloud. Predictions indicate that by 2022, over 60% of the infrastructure is expected to transition to the cloud, eliminating the necessity for captive availability and third-party co-location. Moreover, China’s Enterprise Communication Infrastructure Market held the largest market share, and the Indian Enterprise Communication Infrastructure Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Enterprise Communication Infrastructure market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Enterprise Communication Infrastructure industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Enterprise Communication Infrastructure industry to benefit clients and increase the market sector. In recent years, the Enterprise Communication Infrastructure industry has offered some of the most significant advantages to the global community, addressing pressing concerns related to water quality, accessibility, and public health.

Major players in the Enterprise Communication Infrastructure Market, including Microsoft Corporation, Orange SA, Avaya Inc., IBM Corporation, Cisco Systems Inc., Alcatel-Lucent SA, Verizon Communications, DXC Technology, NEC Corporation, 88 Inc., Mitel Network Corporation, AT&T Corporation are attempting to increase market demand by investing in research and development operations.

Microsoft Corp (Microsoft) functions as a developer and supplier of a diverse array of software products, services, and devices. Its portfolio includes operating systems, cross-device productivity applications, server applications, software development tools, business solution applications, desktop and server management tools, video games, and training and certification services. Additionally, Microsoft is involved in the design, manufacturing, and sale of hardware products such as PCs, tablets, gaming and entertainment consoles, and other intelligent devices. The company delivers a wide range of services, including cloud-based solutions, solution support, and consulting services.

Microsoft distributes and markets its offerings through various channels, including original equipment manufacturers, distributors, resellers, online marketplaces, Microsoft stores, and other partner channels. Operating data centers across the Americas, Europe, and Asia-Pacific, Microsoft is headquartered in Redmond, Washington, USA.

Cisco Systems Inc (Cisco) is a leading integrator of intent-based technologies spanning networking, security, collaboration, applications, and cloud. The company provides a diverse range of products, including switches, modules, wireless solutions, controllers, access points, routers, and interfaces. Cisco's technology facilitates clients in effectively managing a growing number of users, devices, and connections within their networks. Serving various industries such as oil and gas, education, finance, government, healthcare, and more, Cisco markets its solutions through a direct sales force and a network of channel partners, including service providers, system integrators, distributors, and resellers.

With a global presence across the Americas, Europe, the Middle East, Africa, Asia-Pacific, Japan, and China, Cisco is headquartered in San Jose, California, USA. In June 2022, Cisco Systems, Inc. and Kyndryl, an IT infrastructure services provider, formed a partnership to accelerate the transformation of enterprise clients into data-driven businesses. Leveraging Cisco solutions and Kyndryl-managed services, the collaboration aims to facilitate this transformation through the adoption of cloud computing technologies, offering enhanced visibility, manageability, and flexibility for complex hybrid IT management.