Networking Market in India Grows 67.1 per cent in Q3: IDC

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Cisco Systems continues to be the market leader in all the three categories including ethernet switch, router and WLAN

On the back of increased investments across the enterprise and service provider deployments, the networking market in India that consists of ethernet switch, routers and WLAN segments recorded a 67.1 per cent growth in the third quarter of 2018, according to the latest study by IDC India.

Commenting on the report findings, Dileep Nadimpalli, Research Manager – Storage, IDC India, said, “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,” he added.

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Government’s push towards digitalisation

In July-September period, India’s ethernet switch market was valued US$ 160.3 million, in terms of vendor revenue, recording a growth of 34.4 per cent compared to the same period a year ago. ADC (analog-to-digital) and Layer 3 categories mainly pushed the overall growth of ethernet switch, witnessing a double-digit increase. On the other hand, Layer 2 category recorded only a marginal growth.

The Indian Government’s impetus towards digitalisation by upgrading public infrastructure and through multiple smart city initiatives, modernisation of telecom infrastructure and banking sector’s constant investment in network infrastructure for improving customer experience, are likely to push growth further in the coming quarters, the report said.

In the third quarter of 2018, American multinational Cisco Systems continues to be the leader in the ethernet switch market, having a 65.7 per cent share, followed by Hewlett Packard Enterprise (HPE) and Huawei.

Router market growth

The router market in India stood at US$ 214.9 million (in terms of vendor revenue), witnessing a phenomenal growth of 140.4 in the third quarter of 2018 compared to a year ago period.

The growth in router market was mainly led by service provider segment, where telecom companies are continuously investing in upgrading the network in order to meet the demands of an ever-increasing footprint of 4G VoLTE, the report said.

With the introduction of 5G network only a few years away, service providers are likely to  make investments in the segment in the coming years, it added.

In the router segment, Cisco is leading the router market with 75 per cent share. Nokia and Huawei recorded a double-digit growth in the given quarter supported by a few big deals in the telecom space.

In July-September period 2018, the WLAN market in India was valued at US$ 54 million (in terms of vendor revenue), recording a healthy growth of 12 per cent over the previous year. Cisco continues to be the leader in the WLAN market capturing a 24.8 per cent market share, followed by TP-Link and HPE.

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