India's IT Networking Market Hoping For Better Days

by CXOtoday News Desk    Aug 08, 2014

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the Ethernet Switch and Router Market in India witnessed a slowing growth in the April-June quarter owing to an ongoing sluggish economy and General Elections, says research firm IDC, which also states the market however is hoping for a much stronger growth in the coming quarters.

IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market stood at $107.8 million in this quarter growing 9.9 percent Quarter-on-Quarter (QoQ) but showing a year-on-year decline of 9.8 percent  from the same period last year. However, the router market in India outpaced the earlier quarters and stood at $82.7 million, with 68.2 percent  (QoQ) and 40.1 percent  (YoY) rise as a combination of optimism as well as deferred deals registered by some of the vendors in the market, said the research firm.

The Wireless LAN market in India witnessed a 17.6 percent  increase QoQ and 10.5 percent  YoY during 1Q 2014, according to IDC’s Quarterly APeJ Wireless LAN tracker. The Q1 2014 WLAN India market was pegged at USD 35.9 million. Despite the past trend of seasonal low in the last quarter of a year combined with the noticeable slow-down due to the elections, the numbers above show a relatively positive sentiment and have put the LAN & WLAN markets in India in a strong position for the upcoming quarters.

Enterprises made the largest contribution to the Ethernet Switch and Router market in India, continuing the trend from the last few quarter whereas the service provider segment showed signs of revival with the highest growth rate in the recent quarters. IDC believes that the wider acceptance of third Platform that represents the increasing popularity of social networking, mobility, big data and analytics, and cloud among enterprises was the prime reason for the growth and future prospects in the market.

“Inexorable data growth, strong competition, and consumer demands are the major factors driving the growth of network market in India. With market-friendly policies and leapfrog disruptions like LTE rollouts, the market is expected to sail through the tough waters ahead,” said Gaurav Sharma, Research Manager, Enterprise, IDC India.

In India, traffic offloading is rising due to the increasing popularity of data-guzzling applications and existing strained network infrastructure, says the research firm, he said. With the new government in place, the public hotspots projects, announcements in the budget and pro-investment environment are likely to positively impact the networking market in the foreseeable future, concluded IDC.