According to IDC's (International Data Corporation) APeJ Quarterly Switch and Router tracker, the Ethernet Switch market witnessed a year-on-year growth of 21% (in vendor Revenue) and stood at $ 131.23 million. The Router market witnessed a year-on-year decline of 4% and stood at USD 69.2 million USD in terms of vendor revenue.
Increased spending from the enterprise segment due to technology refreshes drove the overall LAN market in Q4 2016. There was a significant increase in uptake of L3 and ADC switches in both the enterprise and service provider segments in Q4 2016. Investments in the government, education, telecom, professional services and BFSI were the key drivers for growth this quarter.
The Router market was driven mainly by investments from the service providers for 4G rollouts and technology refreshes in Q4 2016.Increased Y-o-Y uptake of High end router from the service provider segment and the enterprise segment drove the market in Q4 2016.
With the evolving network environment and the huge amount of data available, adoption of advance analytics in this area is becoming mainstream. This will enable efficient network management for improved performance. Also in 2016, there was an increased uptake of SDN deployments and NFV POCs.
Cisco with its largest share continues to be dominant in Q4 2016 with 65.74% market share, followed by Huawei and HPE. Avaya posted a significant growth in Q4 2016 majorly due to increased investments in the enterprise space.
India WLAN Market Q4 2016
According to IDC's Quarterly APeJ Wireless WLAN tracker, the WLAN market in India registered USD 46.20 million (Vendor revenue) and witnessed a YoY de-growth of 5.8% in Q4 2016 due to the impact of demonetization on the consumer segment. In Q4 2016 the enterprise segment saw a growth of 4% Q-o-Q from Q3 2016.This growth was predominantly driven by access point category in the enterprise segment. The demand for WLAN at outdoor locations increased by almost 9% Y-o-Y in 4Q2016.
Education, professional services and telecom were the major contributing verticals this quarter, while the government, banking, and transportation had increased investment over Q3 2016.
Wi-Fi hotspots at public spaces and Increased adoption of Wi Fi by education institutes to facilitate world class infrastructure will continue to see growth in the coming quarters. Technology upgrades to 802.11ac to support higher bandwidth requirement will also follow a growing trend.
D-Link continues its dominance in the WLAN segment with a 29.50% market share due to increased demand in the enterprise segment, followed by Cisco and TP-link. Cisco and Netgear witnessed a Y-o-Y degrowth while TP-link posted a Y-o-Y growth of around 6% in Q4 2016.
Niharika Kumar, Senior Networking Analyst (India) says, "The network infrastructure in India will certainly upgrade to support the growing demand which has been triggered by the digitization wave. With the increasing number of connected devices and the technology upgrades happening, the demand for efficient, reliable, smart and secure networks is taking the front foot across the segments."
IDC India Forecast
The LAN market continues to grow in single digit in terms of compound annual growth rate (CAGR) for 2016-2021.Government, Education and BFSI are expected to emerge as promising segments in the future.
The WLAN market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2016-2021. Increased deployment at outdoor locations along with technology upgrades to 802.ac will be catering to the growth across segments. The demand for WLAN in the future will be accompanied by the growing emphasis on the Internet Of things and Smart devices and workplaces.
