Enterprise Routers and Switches market view-India

1. Ethernet Switches, Routers & WLAN
Market in India
Anusha S Navaneethan
Research Analyst
26 July 2016

2. Table of Contents
1. India Networking Market
2. Switches and Routers
• Major Players
• Market Trends
• Technology Trends
3. WLAN
• Major Players
• Market Trends
• Technology Trends
4. Future of Networking Market

3. India Networking Market
• Enterprise IT spending is growing at a CAGR of 12% from 2010-2015 and was USD 50 billion in 2015
owing to the growing operational needs of businesses and the advent of the internet of things (IoT).
• Other driving factors that has catapulted the growth are:
• Data center build outs
• Rising penetration of cloud computing
• Big data solutions.
• Smartphones and Laptops
• 4G services rollout, Shared last mile FTTx
• Telecom, Government, BFSI, Healthcare, Hospitality, Education, Manufacturing, Retail, Professional
Services are embracing the possibilities of networking paradigm.
• The Ethernet switch and router market together garnered USD 180 million in revenue during Q4-
2015. The WLAN market in India grew 19% year-on-year during Q4 2015, and garnered USD 53.41
Million as end-user revenue.

4. Switches and Routers

5. Ethernet switch & Routers market
landscape
Escalating number of internet subscribers in the country coupled with increasing adoption
of advanced network solutions by the Corporate and Enterprise segment have fuelled the
growth Ethernet Switches and Routers in the Indian Market. Additionally, rapid
developments in telecom infrastructure along with technological advancements in
communication and networking industry have accelerated the sales of these devices in the
country
• The Ethernet Switch market witnessed a year-on-year growth of 6.8 percent (in vendor
revenue) and stood at USD 108.2 Million in Q4-2015
• The Router market witnessed a significant year-on-year growth of 32 percent and stood
at USD 72.4 Million in terms of vendor revenue as on Q4-2015
• Significant growth was seen in L4-7 switches and routers category
• Organizations are increasingly taking interest in the third platform technologies to
leverage its benefits from
• Workforce optimization
• Supply chain
• Customer experience and efficient resource utilization.

6. Major Players
The Market leader is Cisco, with sales of Ethernet switches and router being around USD 88 million
during Q3 2015, Juniper is in the second place with USD 9 million in sales. other leading players are
Hewlett-Packard, Huawei and Alcatel-Lucent.
Players such as Motorola address only the router market while other players focus on the low end router
and switches markets
The Ethernet Switch market clocked end-user revenue of USD 134.5 million during Q3 2015, with a
quarter-on-quarter growth of 5.8 percent and year-on-year by 2.5 percent
Cisco, 66.50%
Juniper, 7.80%
HP, 6.60%
Huawei, 3%
Alcatel-Lucent,
1.70%
Others, 14.30%
Ethernet Switch & Router Market in India Q3 2015
Vendor Revenue ($M)
Source: IDC

7. Market Trends
• National Optic Fiber Network Project (NOFN)
• Plan to connect all the 2,50,000 Gram panchayats in the country, connectivity is available in
all State Capitals, Districts, HQs
• The NOFN project is estimated to cost about Rs. 20,000 Cr, which will benefit Telecom Service
Providers(TSPs), ISPs, Cable TV operators and Content providers to upgrade/scale up their
Network infrastructure
• 4G Services
• Move to an end-to-end IP wireless network. As a result, Telecom Service Providers(TSPs) are
scaling up their Network Infra to meet the future demand
• Internet of things (IoT)
• Manufacture/Pharma companies and Education system are evaluating Digital ecosystem &
rolling out IoT to increase productivity and user experience
• Government projects
• Ministry of Urban development has proposed to develop 100 Smart cities
• Ministry of Power has taken up 14 Smart Grid pilots with average Customer base of around
20000 each.
• Ministry of Road transport has mandated that all commercial passenger vehicles of more than
22 seating capacity be enabled with GPS, emergency calls etc.

8. Technology Trends (Routers and switches)
• Makers of switch hardware and operating systems are scrambling to
support 25/50/100 GbE, which is poised to replace its 10/40/100 GbE
cousin in hyper-scale data centers cos its
• More power efficient
• Performance (high-end servers can push 40, 50, or even 80Gb/s)
• Cost ( less expensive to use 25GbE, which provides 2.5x more
bandwidth over the same number of wires and switch ports)
• SDN-Software Defined Networking (SDN) has had a considerable impact
on the router and switch market. The switch manufacturers are making
their hardware more accessible through Application Program Interface
(API) which exposes their configurable elements. This transition in design
offers flexible and application-driven customization of network
infrastructure.

9. WLAN

10. The WLAN market landscape
• The WLAN market in India grew 19% year-on-year during Q4 2015, and garnered USD
53.41 Million as end-user revenue
• WLAN market in India is driven by growths in Education, Managed services and
communication and media verticals.
• Increased demand on enterprise WLANs will be driven by enterprise mobility and
deployments of IoT applications.
• 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.
• 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.

11. Major Players
• 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.
Cisco, 22.90%
D-Link, 30.50%TP-Link, 12.40%
HPE, 9.30%
Netgear, 9%
WLAN Market in India Q4 2015
Vendor Revenue ($M)
Source: IDC

12. Market Trends
• Growing requirement for smartphones, tablets, laptops, and media-
intensive applications in business environments are putting greater, and
different, demands on the enterprise WLAN.
• Government initiatives
• Installing Wifi Hot spots across Train station and Airports
• Digital India initiative is likely to kick off with a big bang plan to roll out free
Wi-Fi internet connections in 2,500 cities and towns across the country
• IoT is revolutionising in India in below sectors
• Healthcare
• Housing
• Safety and security
• Transport and automobiles
• Energy conservation and Agriculture

13. Technology Trends (WLAN)
• Wireless technologies that are coming to market, including 802.11ac
Wave 2.
• MU-MIMO.

14. Future of Networking Market
• The Networking segment in India is witnessing strong traction, with Government
initiatives driving digital usage in the country. Large enterprises and SME’s are continuing
to invest in upscaling network infrastructure as the size of business operation multiplies.
All this has resulted in huge business opportunity for networking vendors
• The growing need to support diverse networks of wired and wireless devices has kept the
enterprise networking market on an upward trend and also as an area of constant focus
for IT and network managers. Additionally, increasing preference for built-in multiple
capacity integrated devices, capable of supporting 3G/4G services, load balancing,
content processing capabilities, etc., have catapulted the demand of sophisticated router
and switching equipment.
• The demand for routers and switches in the country has been steadily rising over the
years, barring 2012 when the telecom industry was impacted by the global recession. The
market for Routers/Switches in 2012 was 0.33 million units, which is expected to reach
0.059 million units in 2015 growing at a CAGR of 21.4 per cent.
• There is no domestic manufacturing competency present of the manufacturing of routers
and switches.