According to (IDC) International Data Corporation’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market witnessed a year-on-year growth of 6.8 percent (in vendor revenue) and stood at USD 108.2 Million. The Router market witnessed a significant year-on-year growth of 32percent and stood at USD 72.4 Million in terms of vendor revenue.
Significant growth was seen in L4-7 switches and routers category due to Telecom investments in refresh and 4G rollouts. Telecom, Banking, Professional Services, Education and Government were the key contributors with more that 80 percent market share.
Major Vendor Analysis for LAN Market:
- Cisco continued its dominance with 67 percent market share followed by Juniper and Huawei.
- Juniper and HPE saw a decline in market share, while, Huawei and Alcatel-Lucent witnessed a strong growth in Q4 2015 (quarter-on-quarter))
- HPE has a healthy distribution of its business across verticals whereas Juniper, Huawei and Alcatel-Lucent’s major contribution came from Telecom vertical.
- Telecom 4G roll outs and government projects comprising of various e-governance, surveillance and digital initiatives are expected to further contribute in the coming quarters.
The WLAN market in India clocked a de-growth of 2 percent quarter-on-quarter, however witnessed a growth of 19 percent year-on-year during Q4 2015, according to IDC’s Quarterly APeJ Wireless LAN tracker and registered USD 53.41 Million as end-user revenue. The WLAN market is expected to further grow on the back of increasing devices, need to stay connected and government’s initiatives to facilitate Wi-Fi on a large scale along with refresh projects.
Major Vendor Analysis for WLAN Market:
- D-Link continued to lead the market with 30% share followed by Cisco and TP-link.
- Home and Education segments contributed to more than 80% of the market.
- D-link and HPE saw a decline in the market share while Cisco and Netgear witnessed an increase in the share in Q4 2015 (quarter-on-quarter).
The LAN market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2015–2020. Telcom and Banking would remain as the key contributors but incremental growth is expected from Education, Government, e-Commerce, Healthcare and Hospitality verticals in the near future. SDN is slowly expected to further gain traction in the next few quarters, though large implementations will still take some time to come.
The WLAN market is also expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2015–2020. Uptake from SMB and Wi-Fi hotspot demand from various cities would drive incremental growth in the near future.