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Tracker

TelecomTV TRACKER

Sourced by TelecomTV's TRACKER platform
from IDC

Tracker

Networking market posted a healthy year on year growth of 14 percent in Q1 2016: IDC India

Via IDC

Jul 26, 2016

26 Jul 2016

According to IDC ’s (International Data Corporation) APeJ Quarterly Switch and Router tracker, the Ethernet Switch market witnessed a year-on-year growth of 12.3 percent (in vendor Revenue) and stood at $ 112.6 million. The router market witnessed a significant year-on-year growth of 25.4 percent and stood at 70.8 million USD in terms of vendor revenue.

ADC and L3 switches saw a significant year on year growth due to increased spending from service provides segment for technology refresh and 4G rollouts. Also increased adoption of SMAC technologies drove demand for L3 switches across organizations in Q1 2016. Telecom, Banking, and Education sectors witnessed significant year on year growth of 20 percent and contributed close to 60 percent of the overall market.

Router market witnessed a growth of 25.4 percent year on year in Q1 2016 due to investments from service providers segment. Majority of the growth came from High-end segment due to increased spending from service providers.

Figure 1

Major Vendor Analysis

Cisco continued its dominance with 67 percent market share followed by Huawei and Juniper. Huawei witnessed a significant year on year growth in market share from 1.8 percent to 6.6 percent in Q1 2016 due to uptake from Telecom players. Citrix, Brocade, Array Networks, and Alcatel-Lucent showed a strong year on year growth in Q1 2016.

Figure 2

According to IDC’s Quarterly APeJ WLAN tracker, the market in India clocked a year on year growth of 4.2 percent but showed a quarter on quarter de-growth of 4.2 percent in Q1 2016, and registered USD 47 million (Vendor revenue). This growth was predominantly driven by access points category. Consumer and Service provider market witnessed growth while enterprise business declined marginally year on year in Q1 2016.

Major Vendor Analysis

D-Link continued to lead the market with 31.1 percent share followed by Cisco and TP-link. D-link and Cisco saw a year on year de-growth while TP-link, Netgear and Ruckus posted a strong double digit year on year growth in Q1 2016.

Gaurav Sharma , Research Manager – Enterprise & IPDS, IDC India says,

“Networking demand is expected to grow on the back of digital initiatives, existing traditional infrastructure and rising consumer demand. The inherent need of consumer to always stay connected or perform transactions on multiple platforms, is fuelling the need for network upgrades at a faster pace."

IDC India Forecast

The LAN market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2015–2020. Government initiatives like Digital India, Smart cities, Financial inclusion and various other e-governance projects would drive demand for LAN market in near future. Deployments in E-commerce and payment gateway platforms are expected to drive incremental market growth.

The WLAN market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2015–2020. Demand from Wifi hotspots and uptake of Gateway/routers in consumer segment is expected to drive growth in WLAN market in the near future. Also demand from tier II and III cities is expected to drive incremental growth for WLAN market.

Related Topics
  • 4G LTE,
  • Access Evolution,
  • Finance & Banking,
  • IDC,
  • News,
  • North America,
  • Research and Trials,
  • Tracker

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This content extract was originally sourced from an external website (IDC) and is the copyright of the external website owner. TelecomTV is not responsible for the content of external websites. Legal Notices

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