Router segment triggers 5.5 pc YoY fall in India Networking market in 2Q19 : IDC India

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New Delhi: India Networking market comprising of Ethernet switch, routers and WLAN segments witnessed a 5.5% Year-over-Year (YoY) decline in 2Q19 (CY 2Q19), according to IDC‘s latest networking tracker findings.

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

The Ethernet switch market in India stood at $140.1 million (by vendor revenue) in 2Q19 registering 2.1% YoY growth. 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, as per IDC’s Asia/Pacific Quarterly Ethernet Switch Tracker.

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

India Router market stood at $72.3 million (by vendor revenue) with a steep 24.3% YoY decline in 2Q19. The router segment’s decline in 2Q19 was due to stabilization after heavy spending in the past few quarters and service providers slowing down router investments during the quarter, as per IDC’s Asia/Pacific Quarterly Router Tracker.

Cisco leads the router market with 56.1% market share in 2Q19 followed by Nokia and Huawei.

India WLAN Market, 2Q19

The Indian WLAN market had a 9.1% YoY growth during 2Q19. The market stood at $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, as per IDC’s Asia/Pacific Quarterly WLAN Tracker.

With a 18.4% market share, Hewlett Packard Enterprise (HPE) continued to be the market leader in the WLAN segment during 2Q19, followed by Cisco and TP-Link.

“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,” said Sudharsan Raghunathan, Senior Market Analyst – Enterprise Networking, IDC India.

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.

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