India's networking market which includes Ethernet Switch, Routers and WLAN segments witnessed a 30.6% Year-over-Year (YoY) decline in 3Q19 (July – September 2019). The decline was majorly contributed by the router segment due to strong investments that happened during 2018. However, when compared with 2Q19, the Indian networking market grew by 13%. The growth was mainly due to enterprises starting to exhaust their yearly IT budgets and governments beginning to start IT procurement post elections.
India Ethernet Switch Market 3Q19
According to IDC's Worldwide Quarterly Ethernet Switch Tracker, the 3Q19 Ethernet Switch market in India stood at USD 149.1 million (by vendor revenue) registering YoY decline of 7%. A decline of 10% in the L3 switching segment primarily contributed to the trend. Top spending for switching segment in 3Q19 came from services, telecom finance and government.
Cisco continued to dominate the Ethernet Switch market with a 57.4% share in 3Q19, followed by Hewlett Packard Enterprise (HPE) and Huawei.
India Router Market 3Q19
According to IDC's Worldwide Quarterly Router Tracker, India Router market in 3Q19 stood at USD 96.5 million (by vendor revenue) with a steep YoY decline of 55%. The decline of router segment in 3Q19 was due to strong investments that happened during 2018. However, in comparison with 2Q19, the router segment grew by 33.3%.
Cisco leads the router market with 63.1% market share in 3Q19 followed by Nokia and Juniper.
India Wireless LAN Market 3Q19
According to IDC's Worldwide Quarterly Wireless LAN Tracker, the Indian WLAN market had a YoY decline of 6.1% during 3Q19. The market stood at USD 57 million (by Vendor Revenue). With a 10.6% decline, consumer class deployments were the major cause of this decline. Revenues of WLAN devices are expected to grow in 4Q19 with the launch of Wi-Fi 6 and the upcoming festival season.
With a market share of 18.3%, Hewlett Packard Enterprise continued to be the market leader in the WLAN segment during 3Q19, followed by Cisco and D-Link.
Sudharsan Raghunathan, Senior Market Analyst, Enterprise Networking, IDC India says, "The advent of IOT in Indian enterprises has enabled multiple organizations to build use cases around smart processes and improve interoperability. However, increased network speed and lower latencies are crucial for attaining maximum advantage. 5G would act as a catalyst in driving the adoption of IOT, thereby enabling Indian enterprises to revisit their approach towards their existing networking architecture/infrastructure."
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.
