Networking

While all the segments viz., consumer, enterprise and service provider witnessed YoY growth, enterprise segment stood out as the key contributor for the incremental growth

The India networking market, which includes Ethernet switch, routers and WLAN segments, witnessed a 33.8% yearover-year (YoY) growth in Q4 2018 with increased investments across the enterprise and service provider deployments.

According to IDC’s Asia/Pacific Quarterly Ethernet Switch Tracker, the Q4 2018 Ethernet Switch market in India stood at USD 148.1 million (by vendor revenue) registering strong YoY growth of 24.2%. Significant uptake of ADC and Layer 3 categories drove the YoY growth, while Layer 2 category saw a marginal YoY decline in Q4 2018. Increased spending from Professional services, Government and telecommunications organisations drove the growth for switching in Q4 2018.

Cisco continues to dominate the Ethernet Switch market with a 60.7% share in Q4 2018, followed by Hewlett Packard Enterprise (HPE) and Huawei.

According to IDC’s Asia/Pacific Quarterly Router Tracker, the India router market in Q4 2018 stood at USD 141.5 million ( by vendor revenue) with a sharp YoY growth of 43.4%. The growth was primarily driven by the enterprise segment due to a large multimillion-dollar deal from the government. The router market witnessed strong YoY growth in the service provider segment due to network upgrades and 4G VoLTE expansion investments from telecommunications.

Cisco leads the router market with 69.5% market share in Q4 2018 followed by Nokia and Huawei. According to IDC’s Asia/Pacific Quarterly WLAN Tracker, the WLAN market in India stood at USD 57 million (by Vendor Revenue) in Q4 2018 with a sharp YoY growth of 38.5%. While all the segments consumer, enterprise and service provider witnessed YoY growth, enterprise segment stood out as the key contributor for the incremental growth in Q4 2018. Increased spending from professional services organizations trigged the growth in Enterprise segment in Q4 2018.

Cisco retained the top spot in the WLAN market with a 20.5% market share in Q4 2018, followed by HPE and TP-Link. The Ethernet switch, router, and WLAN market, collectively, are expected to grow in single digits in terms of CAGR for 2018–2023. Increased adoption of emerging technologies, such as cloud, IoT, mobility, etc., would drive incremental revenues. IDC also expects large investments for 5G rollouts in the next couple of years.