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According to International Data Corporation (IDC), the Networking market (including LAN and WLAN hardware) in India witnessed highest revenue since CY 2008, with over 20% growth year-on-year. However, within the year, investment witnessed a seasonal slowdown with a marginal decline in revenues during Q4 2014 as compared to previous quarter.
According to IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market saw an end-revenue of USD 125.0 million during Q4 2014, with a marginal decline quarter on quarter (-4.7%) and increase year on year (27.5%). The Router market stood at a total of USD 69.4 million, a 41.1% growth year on year and -9.3% decrease quarter on quarter in Q4 2014.
Cisco retained its leadership in the Ethernet Switch and Router market, increasing its revenue quarter on quarter and continued to be the vendor of choice for top telcos and other enterprises for their pan-India projects. 2014 was largely attributed to LTE and 3G investments but CY 2015 is expected to be a mix of investments from telecom and other verticals like government and BFSI. Further, the contribution from SMB segment is expected to grow and investments from utility and manufacturing verticals are expected to increase in the next few quarters.
Visionary projects like Digital India and Smart Cities are expected to see some pilots and testing in CY 2015. Innovation in networks would be backed by developments in SDN and NFV space and the market is expected to become more solution centric, where in the convergence of better technology, applications, pre and post-sales services, brand relocation, and security is expected to be well defined and coupled tightly.
The WLAN market in India clocked a 3.8% growth quarter on quarter and 47.5% year on year during Q4 2014, according to IDC’s Quarterly APeJ Wireless LAN tracker and registered USD 45.0 million as end-user revenue.The WLAN market in India is being driven by the traditional segments such as the enterprises and campuses. Education and Professional Services verticals topped the list in contributing to the WLAN market in India during Q4 2014. The continued deployment of hot-spots by government and investments from SMB segment are expected to continue in the coming quarters as well.
IDC India Forecast
CY 2015 is expected to attract investments from various verticals, especially, Government, Telecom and BFSI with Education and healthcare playing their part in the WLAN space particularly. Vendors are likely to be strategizing and restrategizing in order to align with the new government’s digital initiatives. Manufacturing, Education, Government/PSUs, and Professional services verticals will augment their infrastructure both through refresh and rollouts. If 2014 was the best year for the networking infrastructure market in India since 2008, next few quarters are expected to ride on the back of government announcements and positive sentiments.
