India’s enterprise networking market posts 13.6% YoY growth in 4Q 2021

India’s enterprise networking market posts 13.6% YoY growth in 4Q 2021

India’s networking market which includes Ethernet Switch, Routers, and WLAN segments witnessed a 13.6% year-over-year (YoY) growth in terms of vendor revenues during 4Q 2021 (Oct-Dec), said a study.

The investments in the non-DC networking infrastructure have grown significantly over the last few quarters, with organisations looking to re-open campuses, said the report by IDC.

"Having said this, vendors were still seen to be battling with chip shortages, increasing freight costs, increased import costs due to currency fluctuations. Infrastructure lead times have currently risen to the levels of 26-28 weeks for many vendors and are expected to stay the same for some more quarters to come with the Russia-Ukraine conflict worsening the scenario," the report noted.

However, as vendors are looking to clear their shipment backlogs, IDC expects the next few quarters to have steady market growth as demand for networking infrastructure looks very stable.

According to IDC’s Worldwide Quarterly Ethernet Switch Tracker, the 4Q 2021 Ethernet Switch market in India stood at USD 163.1 million (by vendor revenue) registering a strong YoY growth of 25.7%. The enterprise investment in non-DC switching grew at a 41.5% YoY owing to offices getting ready to reopen post the third wave of COVID-19.

According to IDC’s Worldwide Quarterly Router Tracker, the India Router market in 4Q 2021 remained stagnant at USD 75.1 million (by vendor revenue) with a very marginal YoY growth of 0.1%.

According to IDC’s Worldwide Quarterly Wireless LAN Tracker, the Indian WLAN market had a marginal YoY growth of 4.5% by vendor revenue during 4Q 2021 majorly driven by the enterprise wireless segment. The market stood at USD 64.5 million (by Vendor Revenue).

IDC India Forecast that the Ethernet Switch, Router, and WLAN markets are expected to grow in single digits in terms of compound annual growth rate (CAGR) for 2021–2026. Increased adoption of emerging technologies such as cloud, IoT, mobility, etc. would drive incremental revenues. IDC also expects large investments for 5G rollouts in the next couple of years.

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