According to International Data Corporation 's (IDC) latest networking tracker findings, India networking market witnessed a 5.5% Year-over-Year (YoY) decline in 2Q19 (CY 2Q19). The networking market comprises of Ethernet Switch, Routers and WLAN segments. While the switches and WLAN segment grew marginally, the router segment caused deep decline. The overall decline can be attributed to the utilization of their IT budgets by most of the Indian enterprises in 1Q19 and post-election effect in India.
Segment Highlights
India Ethernet Switch Market, 2Q19
According to IDC's Asia/Pacific Quarterly Ethernet Switch Tracker, the Ethernet Switch market in India stood at USD 140.1 million (by vendor revenue) in 2Q19 registering YoY growth of 2.1%. ADC drove the YoY growth, while switches saw a marginal YoY decline in the quarter. Top spending for switching segment in 2Q19 came from services, telecom, finance, and government sectors.
Cisco continues to dominate the Ethernet Switch market with a 51.4% share in 2Q19, followed by Hewlett Packard Enterprise (HPE) and Huawei.
India Router Market, 2Q19
According to IDC's Asia/Pacific Quarterly Router Tracker, India Router market stood at USD 72.3 million (by vendor revenue) with a steep YoY decline of 24.3% in 2Q19 .The decline of router segment in 2Q19 was due to stabilization after heavy spending in the past few quarters and Service Providers slowing down router investments during the quarter.
Cisco leads the router market with 56.1% market share in 2Q19 followed by Nokia and Huawei.
India WLAN Market, 2Q19
According to IDC's Asia/Pacific Quarterly WLAN Tracker, the Indian WLAN market had a YoY growth of 9.1% during 2Q19. The market stood at USD 54.9 million (by Vendor Revenue). Deployments in all segments – consumer, enterprise and service providers witnessed a YoY growth. Service organizations drove the key growth in the enterprise segment during the quarter.
With a market share of 18.4%, Hewlett Packard Enterprise continued to be the market leader in the WLAN segment during 2Q19, followed by Cisco and TP-Link.
Sudharsan Raghunathan, Senior Market Analyst, Enterprise Networking, IDC India says, "The enterprise adoption of high speed ethernet switches like 25GB and 40GB are increasing owing to the exponentially increasing bandwidth requirements. New wireless standards like 802.11 ax (Wi-Fi 6) is also driving this trend, owing to the increase in the number of end points and the ability to deliver high quality content efficiently."
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.
