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India’s network market shows upward trend : IDC

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The ethernet switch and router market in India grew 7.24 per cent to over USD 226.4 million in the first quarter, indicating stronger demand ahead after seasonal lows and a slowdown, research firm IDC today said.

As per IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market stood at $107.8 million in Q1 2014 growing 9.9% Quarter-on-Quarter (QoQ) but showing a decline of 9.8% from Q1 2013 Year-on-Year (YoY).

The router market for Q1 2014 in India outpaced the earlier quarters and stood at $82.7 million, with 68.2% QoQ and 40.1% YoY rise as a combination of optimism as well as deferred deals registered by some of the vendors in the market.

The Wireless LAN market in India witnessed a 17.6% increase QoQ and 10.5% YoY during 1Q 2014, according to IDC’s Quarterly APeJ Wireless LAN tracker. The Q1 2014 WLAN India market was pegged at $35.9 million. Despite the past trend of seasonal low in the last quarter of a year combined with the noticeable slow-down due to the elections, the numbers above show a relatively positive sentiment and have put the LAN & WLAN markets in India in a strong position for the upcoming quarters.

Enterprises made the largest contribution to the Ethernet Switch and Router market in India, continuing the trend from the last few quarter whereas the service provider segment showed signs of revival with the highest growth rate in the recent quarters.

IDC believes that the wider acceptance of 3rd Platform that represents the increasing popularity of social networking, mobility, big data & analytics, and cloud among enterprises was the prime reason for the growth and future prospects in the market.

“The investments in the conventional networking infrastructure will be affected by the highly-revered Software Defined Networking (SDN) and Network Functions Virtualization (NFV) and will evolve with time to give a noticeable revenue stream to vendors. Additionally, the in-house manufacturing of white-label box network devices by the big customers is also a blow to the incumbent networking vendors who are already reeling under margin pressures,” said Suman Bisht, Market Analyst – Enterprise Networking, IDC India.

“Inexorable data growth, strong competition, and consumer demands are the major factors driving the growth of network market in India. With market-friendly policies and leapfrog disruptions like LTE rollouts, the market is expected to sail through the tough waters ahead,” commented Gaurav Sharma, Research Manager – Enterprise, IDC India.

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