India networking market which includes Ethernet Switch, Routers and WLAN segments witnessed a 14.8% year-over-year (YoY) growth in Q1 2019 with increased investments across the enterprise and service provider deployments.

According to IDC’s Q1 2019 Asia/Pacific Quarterly Ethernet Switch Tracker, the Q1 2019 Ethernet Switch market in India stood at USD 146 million (by vendor revenue) registering YoY growth of 4.5%. ADC and Layer 3 categories drove the YoY growth, while Layer 2 category saw a marginal YoY decline in Q1 2019. Top spending for switching segment in Q1 2019 came from services, telecom and financial organizations.

Cisco continues to dominate the Ethernet Switch market with a 53.4% share in Q1 2019, followed by Hewlett Packard Enterprise (HPE) and Huawei.

India Router Market Q1 2019

According to IDC’s Q1 2019 Asia/Pacific Quarterly Router Tracker, India Router market in Q1 2019 stood at USD 133.9 million (by vendor revenue) with a sharp YoY growth of 34.1%.The growth of routers in Q1 2019 was driven by enterprises and telecom service providers. Growth of SD-WAN in India is expected to be driven by banking, government and healthcare.

Cisco leads the router market with 59.5% market share in Q1 2019 followed by Nokia and Huawei.

India WLAN Market Q1 2019

According to IDC’s Q1 2019 Asia/Pacific Quarterly WLAN Tracker, the WLAN market in India stood at USD 53.37 million (by Vendor Revenue) in Q1 2019 with a marginal YoY growth of 5.6%. While the consumer and enterprise segments witnessed YoY growth, service provider deployments faced a marginal decline in revenues during Q1 2019. Professional services vendors drove the key growth in the enterprise segment during Q1 2019.

Hewlett Packard Enterprise became the market leader in the WLAN segment during Q1 2019 with a market share of 20.8%, followed by Cisco and TP-Link.

Sudharsan Raghunathan, Senior Market Analyst, IDC India says, “Organizations that are looking to digitally transform themselves are in the compulsion to adopt software-based technologies to improve manageability. Technologies like SD-WAN can derive very high levels of flexibility and agility by transferring the manageability to a software.”

Ranganath Sadasiva, Director, Enterprise Solutions, IDC India says, “The Networking market in India has shown a lot of growth potential based on DC footprint expansion across enterprises. The number of connected devices is increasing rapidly and the focus on managing data from the "Edge to core" is becoming important more than ever.”

IDC India Forecast

The Ethernet Switch, Router, and WLAN market are expected to grow in single digits in terms of compound annual growth rate (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.