Networking & Communication

Govt Projects To Drive India’s Networking Market: IDC

Networking Market

India’s networking market which include Ethernet switch, Routers and WLAN segments witnessed a 10.8% YoY (Year on Year) growth in Q12018 with increased investments across the enterprise and service provider deployments, said IDC India which 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 is expected to growth across the product categories specially in the coming year.

Dileep Nadimpalli, Research Manager, IDC India says, “With the advent of Software defined Networking (SDN) and SD-WAN technologies the landscape of networking architecture is quickly changing. OEMs should address the developing business and deployment models, since the market will adopt subscription-led networking procurement over traditional networking hardware spend.”According to IDC’s latest Asia/Pacific Quarterly Ethernet Switch Tracker, the Q1 2018 Ethernet Switch market in India stood at USD 139.0 million (By vendor revenue) with a Y-o-Y growth of 9.8%. The growth was majorly driven by Layer 3 category while Layer 2 and Application delivery Controller (ADC) category saw a marginal Y-o-Y decline in Q1 2018. The top five verticals in Q1 2018 were telecom, banking, professional services, government and education. Digital transformation initiatives across organizations would generate incremental revenues in the near future.

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Cisco’s established its top position in the Ethernet Switch market at 66.5% in Q1 2018 followed by HPE. Huawei and Nokia posted a healthy double-digit Y-o-Y growth in 1Q 2018.

India Router Market Q1 2018According to IDC’s latest Asia/Pacific Quarterly Router Tracker, India Router market in Q1 2018 stood at USD 99. 9 million (By vendor revenue) with YoY growth of 8.0% in 1Q 2018. The service provider deployments observed a healthy growth in Q1 2018, while saw a marginal decline in enterprise deployments. The Service provider segments continued investments in 4G deployments and VoLTE and the regular refreshes to upgrade the network infrastructure. Government initiatives around digital India would drive incremental revenues in the coming quarters.

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Cisco continues to lead the router market with 63.7% share in Q1 2018. Nokia and Huawei witnessed a significant YoY growth due to couple of large wins in Telecom space in Q1 2018.

India WLAN Market Q1 2018

According to IDC’s latest Asia/Pacific Quarterly WLAN Tracker, the WLAN market in India stood at USD 51.5 million (by vendor revenue) in Q1 2018 with a significant Y-o-Y growth of 19.8% This growth was majorly driven by enterprise and service provides deployments while consumer deployments saw a decline. Increased spending in government was the key growth contributor for the WLAN market in Q1 2018.

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HPE emerged as the market leader in Q1 2018 in the WLAN market with a 19.9% market share followed by Cisco and D-Link. Ranganath Sadasiva, Director-Enterprise, IDC India says, “Reconceptualizing Network architecture is mandatory for Organisations. Initiatives around citizen Digital empowerment; Innovation accelerator technologies such as IOT, AR/VR, Robotics; Connectivity enhancements initiatives like 5G/VoLTE rollouts, Wi-Fi campus, Hotspots, etc. are expected to increase the spending on networking in the coming quarters.”

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