Networking Market Posts Solid Growth In Q3'15: IDC
With government initiatives now taking shape in various ministries/state governments and Telecom sector getting ready for its next battle in terms of 4G LTE rollouts, network remains the key for these initiatives to be achieved. According to International Data Corporation (IDC) APeJ Quarterly Switch and Router tracker, the Ethernet Switch market clocked end-user revenue of $134.5 million during Q3 2015, with a quarter-on-quarter growth of 5.8 percent and year-on-year by 2.5 percent. The Router market stood at $71.95 million USD, a de-growth of 6 percent in the market year-on-year and a growth of 5.3 percent quarter-on-quarter in terms of end user revenue.
Digital initiatives have taken centre stage in most of the organizations and as third platform technologies move from acceptance to adoption stage, network is expected to experience strain and hence will witness opportunities of upgrade as well as refresh in the next few quarters, states the IDC report.
The key vendors in the LAN market were Cisco, Juniper, HP, Huawei and Alcatel-Lucent, contributing over 86 percent to the revenues during Q3 2015. Cisco retained its dominance in the Switch & Router market. The key growth verticals for the vendor in Q3 were Communication & Media, Finance and Services with Communication & Media remaining to be the most promising vertical (growth-wise) for the next few quarters as well. For Juniper, the top verticals contributing to its growth in Q3 were Communication & Media, Professional Services and Government.
HP was strong in Manufacturing vertical that contributed 29 percent of its share to the total vendors revenue. Finance was the second most dominant vertical for the vendor followed by Government. For Huawei, the top three vertical included Communication & Media, Manufacturing with Professional Services and Retail/Wholesale verticals contributing equally to the vendors’ revenue.
Optimization and workforce productivity are now being recognized as key initiatives besides other digital and third platform initiatives in the enterprises. Customer acquisition / transformation of existing customers to come on-board for the 4G LTE has already begun as telcos fear price wars and customer poaching going forward. Network investments are therefore taking the centre stage to meet this growth.
The WLAN market in India clocked a 2.9 percent growth quarter-on-quarter and 25.7 percent year-on-year during Q3 2015, according to IDC’s Quarterly APeJ Wireless LAN tracker and registered USD 54.43 million as end-user revenue. The WLAN market is experiencing constant growth since CY 2014 and is expected to continue further on the same lines.
D-Link led the market with contribution from Home, SOHO and Education segments Wi-Fi hotspots are now taking the centre stage to give new revenue streams as well as to implement a fresh wave of citizen services to the masses / tourists in many areas. Home and Education segments were the overall largest contributors to the WLAN market in Q3 2015.
Akanksha Padha, Senior Market Analyst, Enterprise Networking, IDC India says, “WLAN market is set to grow as smart devices proliferate the market and IoT applications begin to emerge forcing more network investments in the coming quarters. Surveillance projects, digital initiatives and telco rollouts are expected to boost market in the coming quarters as well.”
Gaurav Sharma, Research Manager, Enterprise & IPDS, IDC India says, “With the network traffic growth at an all-time high, enterprises looking to differentiate themselves on the basis of speed, efficiency and customer experience (rather than customer service) taking centre stage, network investments and innovation will remain the key to success for all these. SDN is expected to gain mindshare in the coming quarters as organizations look to transition towards future ready network architectures.“
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