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Govt, Large Enterprises Drive India’s IT Networking Growth: IDC

IT Networking

India’s networking market which include Ethernet switch, Routers and WLAN segments witnessed a 5.5% YoY growth in Q2 2018 with increased investments across the enterprise and service provider deployments. Cisco’s maintained its top position in the Ethernet Switch market at 57.9% in Q2 2018 followed by HPE and Huawei, said IDC.

India Ethernet Switch sees moderate growth

According to IDC’s latest Asia/Pacific Quarterly Ethernet Switch Tracker, Q2 2018. Ethernet Switch market in India stood at USD 137.2 million (By vendor revenue) with a Y-o-Y growth of 1.2%. The growth was majorly driven by Application delivery Controller (ADC) and Layer 3 category while Layer 2 saw a Y-o-Y decline in Q2 2018. Government investment in public infrastructure upgrades and enterprise spending in telecom and banking segments as part of the digitization initiatives are expected to drive growth in the coming quarters.

pr net 1Source : IDC Asia/Pacific Quarterly Ethernet Switch Tracker, Q2 2018 

India Router Market sees more deployment

According to IDC’s latest Asia/Pacific Quarterly Router Tracker, Q2 2018. India Router market in stood at USD 95.4 million (By vendor revenue) with YoY growth of 9.6% in Q2 2018. The service provider deployments observed a double-digit growth in Q2 2018, while the enterprise deployments growth was only marginal. Digitization initiatives by the Government and investment in infrastructure upgrade for 4.5G and 5G by the Service Provider segment would drive incremental revenues in the coming quarters.

nhikjiSource : IDC Asia/Pacific Quarterly Router Tracker, Q2 2018 

Cisco continues to lead the router market with 58.0% share in Q2 2018. Nokia and Huawei witnessed a significant YoY growth due to couple of significant wins in Telecom space in Q2 2018.

Businesses drive WLAN Market 

According to IDC’s latest Asia/Pacific Quarterly WLAN Tracker, Q2 2018. WLAN market in India stood at USD 48.2 million (by Vendor Revenue) with a healthy Y-o-Y growth of 10.7% This growth was majorly driven by enterprise and service provides deployments while consumer deployments saw only a marginal growth. Increase in spending by professional services sector and government was a key driver for the double-digit Y-o-Y growth of WLAN market in India.

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Source : IDC Asia/Pacific Quarterly WLAN Tracker, Q2 2018 

Cisco reached the top spot in the WLAN market with a 21.3% market share in Q2 2018, followed by D-Link and TP-Link.

Ankush Dagar, Senior Market Analyst, Enterprise Networking, IDC India says, “Enterprises are progressively adopting high-speed Ethernet switches, 25Gb and 100Gb, and software solutions such as SD-WAN, to meet the requirements of high bandwidth consumption, cloud-based application and growing mobile enterprise endpoints. IDC expects this trend to sustain in the coming quarters as OEMs design products around these requirements.”

Ranganath Sadasiva, Director Enterprise, IDC Indiasays , “Increased acceptance of openness in Networking Platforms by Organisations is changing the landscape of networking aided by emerging technologies and accelerating digital transformation initiatives.”

 IDC India Forecasts that the Ethernet Switch, Router and WLAN market are expected to grow in single digits in terms of compound annual growth rate (CAGR) for 2017-2022. Government initiatives are expected to boost growth across the product categories specially in 2018.

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