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The WLAN market in India is growing due to the enterprises, large or small and campuses that are all investing in the wireless infrastructure as a primary option. Q2 was the quarter of telcos, with huge investments to build their backhaul for expansions as well as new network build-outs. SDN is also gaining traction through innovations and aggressive initiatives by the vendors to strengthen their position.
The Networking market in India witnessed growth due to huge investments in 2Q2014 Q-o-Q as well as Y-oY. According to IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market stood strong at USD 128.4 million in terms of customer revenue during Q2 2014 growing 19.2% Q-o-Q and 29.1% Y-o-Y. The router market, however, witnessed sharp decline from previous quarter that had a spike due to various reasons, by 17.4%. However, the market garnered a total of USD 68.4 M, a 12.3% growth Y-o-Y. Cisco retained its dominance in the Switch & Router market winning deals primarily in the telecom vertical. 2Q 2014 was also attributed to the various announcements and framing of tenders for the government projects that are due to be executed in the coming quarters. Further growth is expected in the coming quarters as well. Large to midsized deals were also visible in the government vertical. SMB segment also witnessed deals in various verticals specially the tier II & tier III banks. Manufacturing, utility and banking were the fastest growing verticals in 2Q and are expected to continue with their spending pattern in the coming quarters as well.
The WLAN market in India registered a 7.8% growth Q-o-Q and 23.9% Y-o-Y during 2Q 2014, according to IDC’s Quarterly APeJ Wireless LAN tracker and clocked USD38.5 million in terms of customer revenue. Education, Banking and Hospitality were the key segments that contributed to this growth in 2Q 2014 and are expected to continue with the investments.
WLAN market is witnessing multiple deals from the growing SMB segment as well.
Today’s Networking market is not just defined by technology, but also by the collaboration among the vendors, Partner-centric initiatives and cost-competition, which are also some of the reasons for disruptions in the market. Continuing the trend from the last few quarters, the enterprises greatly contributed to the Ethernet Switch market, whereas the router market was defined by the telecom vertical that has shown the signs of revival in the last quarter.
Gaurav Sharma, Research Manager – Enterprise IDC, commented: “With a series of new projects being announced by the government, the direct or indirect beneficiary would be the network to carry all the traffic. Investments from manufacturing, telecom and professional services verticals are expected to revive and drive the investments in the coming quarters. SDN is gaining traction and fast becoming the source of discussions for future growth.”
Government’s initiatives to improve the financial inclusion, reduce the digital divide and build Smart Cities, are expected to contribute largely to the networking market in the near future. For the telcos’ investment, strong competition, brand relocation, customer loyalty, and Government support will be the driving forces. The SMBs are expected to continue investing in the networking market due to changes in technology coupled with their expansion goals. Hotspots solutions, traffic offloading, mobility, cloud computing, Big Data & Analytics, Social media, and BYOD would be the drivers that will drift the networking market in the foreseeable future.
