Networking Market to Witness Upgrade and Refresh

Networking Market to Witness Upgrade and Refresh

According to IDC as Digital initiatives have taken centre stage in most of the organizations and as 3rd platform technologies move from acceptance to adoption stage, network is expected to experience strain and hence will witness opportunities of upgrade as well as refresh in the next few quarters.

With government initiatives now taking shape and form in various ministries/state governments and Telecom sector getting ready for its next battle in terms of 4G LTE rollouts, network remains the key for these initiatives to be achieved.

According to IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market clocked end-user revenue of USD 134.5 million during Q3 2015, with a quarter-on-quarter growth of 5.8 percent and year-on-year by 2.5 percent.

The Router market stood at USD 71.95 million USD, a de-growth of 6 percent in the market year-on-year and a growth of 5.3 percent quarter-on-quarter in terms of end user revenue.

Ethernet Switch & Router Market in India Q3 2015

Optimization and workforce productivity are now being recognized as key initiatives besides other digital and 3rd platform initiatives in the enterprises. Customer acquisition / transformation of existing customers to come on-board for the 4G LTE has already begun as telcos fear price wars and customer poaching going forward. Network investments are therefore taking the centre stage to meet this growth.

WLAN Market in india Q3 2015

The WLAN market in India clocked a 2.9 percent growth quarter-on-quarter and 25.7 percent year-on-year during Q3 2015, according to IDC’s Quarterly APeJ Wireless LAN tracker and registered USD 54.43 million as end-user revenue. The WLAN market is experiencing constant growth since CY 2014 and is expected to continue further on the same lines.

Gaurav Sharma, Research Manager – Enterprise & IPDS, IDC India, said, “With the network traffic growth at an all-time high, enterprises looking to differentiate themselves on the basis of speed, efficiency and customer experience (rather than customer service) taking centre stage, network investments and innovation will remain the key to success for all these. SDN is expected to gain mindshare in the coming quarters as organizations look to transition towards future ready network architectures.

IDC India Forecast

Increasing digitization, flourishing SMBs, e-commerce boom, rising need for mobility and data intensive applications are some of the reasons for network infrastructure to witness increased investments and innovation in the coming quarters. Investments are expected from Government, Telecom and BFSI verticals that would largely get complemented from emerging verticals like Education and Hospitality.

Increased demand from surveillance, state government projects, traffic offloading and government initiatives (like UID and Digital India) are expected to further contribute to the demand in the coming quarters.

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