Networking Market in APeJ Posted a Growth of 7.4% in 4Q16

According to IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market witnessed a year-on-year growth of 21% (in vendor Revenue) and stood at $ 131.23 million. The Router market witnessed a year-on-year decline of 4% and stood at USD 69.2 million USD in terms of vendor revenue.

Increased spending from the enterprise segment due to technology refreshes drove the overall LAN market in 4Q16. There was a significant increase in uptake of L3 and ADC switches in both the enterprise and service provider segments in 4Q16. Investments in the government, education, telecom, professional services and BFSI were the key drivers for growth this quarter.

The Router market was driven mainly by investments from the service providers for 4G rollouts and technology refreshes in 4Q16. Increased YoY uptake of High end router from the service provider segment and the enterprise segment drove the market in 4Q16.

With the evolving network environment and the huge amount of data available, adoption of advance analytics in this area is becoming mainstream. This will enable efficient network management for improved performance. Also in 2016, there was an increased uptake of SDN deployments and NFV POCs.

Cisco with its largest share continues to be dominant in 4Q16 with 65.74% market share, followed by Huawei and HPE. Avaya posted a significant growth in 4Q16 majorly due to increased investments in the enterprise space.