India Networking Market saw strong YoY growth of 33.8% in 4Q18

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India networking market which includes Ethernet Switch, Routers and WLAN segments witnessed a 33.8% year-over-year (YoY) growth in Q4 2018 with increased investments across the enterprise and service provider deployments.

India Ethernet Switch Market Q4 2018

According to IDC’s latest Asia/Pacific Quarterly Ethernet Switch Tracker, the Q4 2018 Ethernet Switch market in India stood at USD 148.1 million (by vendor revenue) registering strong YoY growth of 24.2%. Significant uptake of ADC and Layer 3 categories drove the YoY growth, while Layer 2 category saw a marginal YoY decline in Q4 2018. Increased spending from Professional services, Government and telecommunications organizations drove the growth for switching in Q4 2018.

Cisco continues to dominate the Ethernet Switch market with a 60.7% share in Q4 2018, followed by Hewlett Packard Enterprise (HPE) and Huawei.

India Router Market Q4 2018

According to IDC’s latest Asia/Pacific Quarterly Router Tracker, India Router market in Q4 2018 stood at USD 141.5 million (by vendor revenue) with a sharp YoY growth of 43.4%. The growth was primarily driven by the enterprise segment due to a large multimillion-dollar deal from the government. The router market witnessed strong YoY growth in the service provider segment due to network upgrades and 4G VoLTE expansion investments from telecommunications.

Cisco leads the router market with 69.5% market share in Q4 2018 followed by Nokia and Huawei.

India WLAN Market Q4 2018

According to IDC’s latest Asia/Pacific Quarterly WLAN Tracker, the WLAN market in India stood at USD 57.0 million (by Vendor Revenue) in Q4 2018 with a sharp YoY growth of 38.5%. While all the segments consumer, enterprise and service provider witnessed YoY growth, enterprise segment stood out as the key contributor for the incremental growth in Q4 2018. Increased spending from professional services organizations trigged the growth in Enterprise segment in Q4 2018.

Cisco retained the top spot in the WLAN market with a 20.5% market share in Q4 2018, followed by HPE and TP-Link.

Dileep Nadimpalli, Research Manager, Storage, IDC India says, “Networking is the backbone for any of the IT transformation initiatives. Networking systems should be more agile, scalable with better control and security to enable organizations to adapt quickly to business innovations. Software-defined networking would be of absolute necessity for faster time to market and optimizing the network recourses.”

Ranganath Sadasiva , Director, Enterprise Solutions, IDC India says, “Increased uptake of hybrid cloud, multi-cloud, mobility, IOT, etc. are demanding more networking resources and making day-to-day network operations complex. Organizations are opting for next-generation networking solutions to address automation and orchestration needs arising due to complex network environments. 

IDC India Forecast

The Ethernet Switch, Router, and WLAN market, collectively, 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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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.