The Ethernet switch market witnessed a year-on-year (Y-o-Y) growth of 12.3 percent (vendor revenue) and stood at USD 112.6 million. The router market witnessed a significant Y-o-Y growth of 25.4 percent and stood at USD 70.8 million in terms of vendor revenue.
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 Y-o-Y growth of 20 percent and contributed close to 60 percent of the overall market.
Router market witnessed a growth of 25.4 percent Y-o-Y in Q1 2016 due to investments from service providers segment. Majority of the growth came from high-end segment due to increased spending from service providers.
The market in India clocked a Y-o-Y growth of 4.2 percent but showed a quarter-on-quarter de-growth of 4.2 percent in Q1 2016, and registered USD 47 million (vendor revenue). Consumer and service provider market witnessed growth while enterprise business declined marginally Y-o-Y in Q1 2016.
The LAN market is expected to grow in single digit in terms of compound annual growth rate for 2015-2020. The WLAN market is expected to grow in single digit in terms of compound annual growth rate for 2015-2020. Demand from Wi-Fi hotspots and uptake of gateway/routers in consumer segment is expected to drive growth in WLAN market in the near future.
D-Link continued to lead the market with 31.1 percent share followed by Cisco and TP-link. D-link and Cisco saw a Y-o-Y de-growth while TP-link, Netgear, and Ruckus posted a strong double-digit Y-o-Y growth in Q1 2016.