The enterprise networking market in India will drop from $8.42 billion in 2019 to $8.35 billion in 2020, GlobalData forecasts.
Disruption in business operations due to COVID-19 restrictions and the subsequent drop in revenues have forced most enterprises to take a conservative approach to ICT investments, which have affected their spending on enterprise networking during the year.
However, the enterprise networking market in India will recover in 2021 and post a CAGR of 5.2 percent between 2019 and 2024, says GlobalData.
Nidhi Gupta, technology analyst at GlobalData, said: “As enterprises gradually resume their normal operations by moving their business processes to cloud and allow their employees to even work from home, their investments in networking solutions and services that are capable of supporting these strategies will increase in the coming years.”
Networking services will remain the largest and the fastest growing market segment in India through the forecast period.
Growth in the networking services segment over the forecast period will be led by fiber optic (FTTH/B) services category. Rising enterprise demand for high-speed broadband services and increasing availability of fiber-optic broadband connectivity nationwide will support growth in FTTH/B services.
Banking, financial services and insurance (BFSI) sector will be the largest vertical market for enterprise networking in India.
The need to have a robust network infrastructure to enable their digital services, handle increasing data flows and safeguard huge volumes of customer information they hold against cyber-attacks will drive BFSI firms to modernize their IT networks and increase their spending on new network solutions and services.
Meanwhile, IDC India earlier said the Ethernet Switch, Router, and WLAN revenue, the main components of enterprise networking, are expected to grow in single digits in terms of compound annual growth rate (CAGR) for 2018–2023.
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, IDC said.
IDC said India’s networking market revenue dipped 9.6 percent in Q2 2020 (April – June 2020). IDC expects Q3 (July-September 2020) to also follow the same trendline due to the lack of business activity in Q2 translating into declined shipments.