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Buoyant on increased investments across enterprises and service provider deployments, India’s networking market posted a 67.1 per cent year-on-year (YoY) growth in the third quarter of 2018, according to a study by International Data Corporation (IDC).
The networking market includes Ethernet switch, routers and wireless local area network (WLAN) segments.
“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 organisations 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,” Dileep Nadimpalli, Research Manager, Storage IDC India, said.
The Ethernet switch market in India stood at $160.3 million (by vendor revenue) with a YoY growth of 34.4 per cent, according to the study.
The government’s push towards digitalisation by upgrading public infrastructure and through its multiple smart city initiatives, the telecom sector’s infrastructure modernisation drives and the banking sector’s continual investment in network infrastructure to improve customer experience are expected to drive growth in the coming quarters.
Continued investments
In Q3, the Indian router market stood at $214.9 million by vendor revenue with a 140.4 per cent YoY growth. The growth was primarily driven by the service provider segment, where telecom players are continually investing in network upgrades to meet the demands of the ever increasing 4G VoLTE footprint.
With the launch of the 5G roadmap and commercialisation just a few years away, the service provider segment is expected to continue investments in the coming years.
Cisco accounted for three-fourth of the router market in Q3 2018. Nokia and Huawei witnessed a high double-digit YoY growth on the back of a few big-ticket wins in the telecom space.
During the reporting quarter, India’s WLAN market stood at $54 million, posting a 12 per cent YoY growth. Enterprise and service provider segments continued to drive growth, however, the consumer segment witnessed a 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. Cisco maintained its top spot in the WLAN market with a 24.8 per cent market share in Q3, followed by TP-Link and HPE.
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