India’s networking market grows 14% in Q1

cisco ethernet market

India’s networking market grows 14 percent year-on-year in the first quarter of 2016, IDC data showed.

Ethernet Switch market grew 12.3 percent to $112.6 million. The research firm said ADC and L3 switches saw a significant year on year growth due to increased spending from service provides segment for technology refresh and 4G rollouts.

Also increased adoption of SMAC technologies drove demand for L3 switches across organizations in Q1 2016.

Telecom, Banking, and Education sectors witnessed significant year on year growth of 20 percent and contributed close to 60 percent of the overall market.

At the same time, the router market expanded 25.4 percent and stood at $70.8 million in terms of vendor revenue. The growth was driven by investments from service providers segment.

IDC said majority of the growth came from High-end segment due to increased spending from service providers.

Cisco continued its dominance with 67 percent market share followed by Huawei and Juniper.

Huawei witnessed a significant year on year growth in market share from 1.8 percent to 6.6 percent due to uptake from Telecom players.

Citrix, Brocade, Array Networks, and Alcatel-Lucent showed a strong year on year growth in Q1 2016.

LAN market in India expanded 4.2 percent but showed a quarter on quarter de-growth of 4.2 percent in Q1 2016, and registered $47 million.

IDC said the LAN market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 2015–2020.

Government initiatives like Digital India, Smart cities, Financial inclusion and various other e-governance projects would drive demand for LAN market in near future.

Deployments in E-commerce and payment gateway platforms are expected to drive incremental market growth.