Govt, Large Enterprises To Drive India Networking Market: IDC

Information Management

India networking market which include Ethernet Switch, Routers and WLAN segments witnessed a 67.1% YoY growth in Q3 2018 with increased investments across the enterprise and service provider deployments. The Ethernet Switch, Router and WLAN market are expected to grow in single digits in terms of CAGR for 2017-2022. Government and enterprise digitalization initiatives are expected to drive growth across product categories.

According to IDC’s latest Asia/Pacific Quarterly Ethernet Switch Tracker, the Q3 2018 Ethernet Switch market in India stood at USD 160.3 million (By vendor revenue) with an excellent YoY growth of 34.4%. ADC and Layer 3 categories predominantly drove the overall growth with high double-digit individual YoY rise, while Layer 2 also saw a YoY growth, though only marginal.

Government push towards digitalization through upgrade of public infrastructure and multiple smart city initiatives; telecom infrastructure modernization drives and banking sector’s continual investment in network infrastructure to improve customer experience, is expected to drive growth in the coming quarters.

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Cisco continues to dominate the Ethernet Switch market with a 65.7% share in Q3 2018, followed by HPE and Huawei.

IDC said, India Router market in Q3 2018 stood at USD 214.9 million (By vendor revenue) with an exceptional YoY growth of 140.4%. The growth was primarily driven by the service provider segment, where telecom players are continually investing in network upgrades to meet the demands of an ever increasing 4G VoLTE footprint. With the launch of 5G roadmap and commercialization just a few years away, the service provider segment is expected to continue investments in the coming years.

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Cisco accounted to 3/4th of the Router market in Q3 2018. Nokia and Huawei witnessed high double-digit YoY growth on the back of a few big-ticket wins in the Telecom space.

According to IDC, the WLAN market in India stood at USD 54.0 million (by Vendor Revenue) in Q3 2018 with a healthy YoY growth of 12.0%.  Enterprise and service provider segments continued to drive growth, however, the consumer segment witnessed a YoY decline. Enterprise investment in mobility friendly networks and government investment in improving wireless infrastructure for the masses as well as in smart city projects, were the key drivers for growth in the WLAN market in India.

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Cisco retained the top spot in the WLAN market with a 24.8% market share in Q3 2018, followed by TP-Link and HPE.

Dileep Nadimpalli, Research Manager, Storage, IDC India says, “Mobile workforce, anytime anywhere access to enterprise networks, security across multiple channels and shift towards cloud-based application workload are key drivers for investment in network infrastructure. As organizations start their ‘Future of Work’ transformation journeys, IDC expects a growth in adoption of software-defined products and solutions, such as SD-WAN and SDN-enabled Ethernet Switches.”

Ranganath Sadasiva, Director-Enterprise, IDC India says, “Software defined networking solutions are expected to gain prominence as the enterprise infrastructure evolves from siloed, human-dependent systems to self-servicing, fully automated and seamless integrated systems.”

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