11 Apr 2017
Bangalore, 17th May 2017: According to IDC’s Asia/Pacific Quarterly Ethernet Switch Tracker March 2017, the Ethernet Switch market in India witnessed a Q-o-Q growth of 30.6% in Q4 2016 over Q3 2016 and stood at USD131.2 million. There was a significant increase in the uptake of L3 and ADC switch in both the Enterprise and the Service provider deployments. The various digital initiatives by the government has been a strong driver for fuelling investments in this segment. Verticals such as government, telecom, and education were the top verticals which saw an increased investment in Q4 2016 over Q3 2016.
Cisco continues to dominate the Ethernet Switch market with 66.9% market share in Q4 2016, followed by HPE and Avaya. Avaya posted a significant growth in Q4 2016 majorly due to increased investments in the enterprise space.
India Router Market Q4 2016
The Router market in India had a marginal growth of 1.1% in Q4 2016 over Q3 2016 and stood at USD 69.2 million. The growth in the router segment was attributed to the deployments of high end router in the service provider space. Apart from the usual refreshes and upgrades of legacy networks, 4G expansion is taking centre stage amongst the service providers, driving the increased uptake of routers. This highlights the need for service providers to provide faster and more reliable network connection to their consumers to stay ahead of their competitors
Concepts like SDN and NFV did see an increased traction mostly as proof-of-concept among the Service provider and Enterprise segments, however they were limited to the first movers in the country.
Cisco leads the router market with 63.6% share in Q4 2016 driven by deployments in both the enterprise and Service space, followed by Huawei and Juniper whose major deployment were in the Service provider segment.
India WLAN Market Q4 2016
According to IDC’s Asia/Pacific Quarterly WLAN Tracker March 2017, the WLAN market in India shrunk to USD 46.2 million in Q4 2016 or a decline of 10.4% compared to Q3 2016.The consumer segment witnessed a contraction from the previous quarter due to the impact of demonetization, while the enterprise segment grew by 4.0% Q-o-Q. This growth was predominantly driven by increased investments in the government segment in Q4 2016. The demand for WLAN at outdoor locations increased by almost 9.2% Y-o-Y in Q4 2016. Education, professional services and government were the major contributing verticals this quarter.
The various government initiatives to deploy Wi-fi hotspots at public spaces and venue based Wi-fi deployment has positively impacted the WLAN market. The need for educational institutions to upgrade their present network infrastructure to provide world class facilities has also fuelled the demand for WLAN in this segment. Technology upgrades to 802.11ac to support higher bandwidth requirement will be a driver for the growth of WLAN.
D-Link leads the WLAN market with a 29.5% market share followed by Cisco and TP-link. Cisco recorded an impressive double digit Q-o-Q growth in Q4 2016 in both its enterprise and service provider segment.
Niharika Kumar, Senior Networking Analyst (India) says, “The network infrastructure in India will certainly upgrade to support the growing demand which has been triggered by the digitization wave. With the increasing number of connected devices and the technology upgrades happening, the demand for efficient, reliable, smart and secure networks is taking the front foot across the segments."
IDC India’s Forecast
The Ethernet Switch, Router and WLAN market are expected to grow in single digits in terms of compound annual growth rate (CAGR) for 2016–2021. Government, Education, banking and financial services sector are expected to emerge as growth drivers for the Ethernet Switch and Router segment in the future. On the other hand, the demand for WLAN in the future will be accompanied by the growing emphasis on the Internet Of things and Smart devices.
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TP-LINK Technologies Co., Ltd., Huawei Technologies Co., Ltd., Cisco Systems, Inc., NETGEAR, Inc., Nokia Corporation, Hewlett Packard Enterprise, D-Link Corporation, Juniper Networks, Inc., Avaya Inc.