Market Trends of Indonesia Enterprise Network Infrastructure Industry
Routers and Switches to Exhibit a Significant Growth Rate
- Switches and routers are pivotal components when setting up a small office network. Despite their similar appearances, these devices play distinct roles in network operations. Switches play a pivotal role in small business networks, enabling seamless resource sharing among devices like computers, printers, and servers. Meanwhile, routers extend this connectivity by linking multiple switches and their networks, creating a more expansive network infrastructure.
- In a move to strengthen its economy, the Indonesian government recently unveiled the "Making Indonesia 4.0" roadmap. This blueprint aims to usher in advanced manufacturing technologies, with a strong emphasis on key industries. Notably, the information technology industry stands out as a primary focus within this initiative. Government forecasts are optimistic, envisioning a significant transformation where digitalization emerges as the cornerstone of Indonesia's economic future. With digitization increasing, the need for routers and switches will also be boosted eventually.
- Robust IT solutions, when combined with routers and switches, offer multifaceted benefits to enterprises. They are particularly instrumental in facilitating remote work, enabling enterprises to monitor the access to business information from diverse locations. Effective utilization of switching and routing ensures seamless access to business tools, essential applications, and software. Furthermore, maintaining a comprehensive oversight becomes streamlined. When everyone operates on a unified bandwidth, enterprises stand poised for optimal growth.
- According to the Indonesian Internet Service Providers Association (APJII), internet penetration in Indonesia increased from 78.1% in 2023 to 79.5% in 2024. This uptick also led to a notable surge in demand for routers and switches, driven by the expanding user base and the proliferation of connected devices.
Understand The Key Trends Shaping This Market
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The Enterprise End-user Industry Segment is expected to Hold a Major Market Share
- The ICT industry is poised for continued economic growth, with Indonesia's digital economy set for rapid expansion, thereby generating a need for enterprise network infrastructure. This growth is fueled by major operators' investments in expanding and developing 4G/5G networks, leading to increased mobile data usage. Additionally, investments in ICT and telecom infrastructure are set to hasten the country's digital transformation. As a result, enterprises in the ICT industry are well-positioned to capitalize on these opportunities, driving sustained economic progress in Indonesia.
- According to the GSMA, Indonesia's GDP is poised to receive a significant boost, with 5G technology projected to contribute over USD 41 billion between 2024 and 2030. This injection of funds is not just a financial windfall; it will be a strategic move that will propel Indonesia toward realizing its ambitious 2045 "Digital Indonesia" vision, helping the nation realize the potential of Industry 4.0.
- Alibaba Group's survey, "Next-Generation Cloud Strategy in Asia," found that by 2023, 94% of cloud service users in Indonesia planned to increase their cloud technology investments. Simultaneously, 92% of Indonesian businesses were aiming to complete their cloud migration within two years. More than half of these enterprises are poised to amplify their cloud computing investments, highlighting the pivotal role of cloud infrastructure in driving enterprise growth. Therefore, enterprises are increasingly deploying advanced networking solutions to support their cloud applications and services, highlighting the necessity for a robust network infrastructure to ensure seamless connectivity.
- Wi-Fi 6, 5G, and recently allocated frequency bands are expanding high-speed wireless connectivity to a broader range of users and IoT devices. Also, 400 Gbps has emerged as the benchmark for data center networks, driving heightened productivity, fostering innovation within enterprises, and driving the need for robust enterprise network infrastructure.
