Price of network equipment significantly increased: IDC

Revenue of India’s networking market, which includes Ethernet Switch, Routers, and WLAN segments, rose 2.9 percent during April-June 2022, according to IDC.
Zyxel networking productsNetworking vendors faced chip shortage which is extending the lead times in business. Though the delays are starting to get rationalized in the wireless segment, the shortages in the switching segment continue to worsen, specifically in the access and distribution layer.

The prices of network equipment have significantly increased over the last few quarters due to the high input costs driven by semiconductor demand, logistics, fluctuating currency, etc. Despite these challenges, the demand for networking equipment has not weakened and vendors have at least two-quarters of backlogs to clear in the coming months.

5G will play a pivotal role in the growth of the enterprise networking market. IDC expects that the top two telcos will incur significant expenditure on network infrastructure aimed at building edge data centers to deliver the 5G promise of faster speeds and lower latencies, Sudharsan Raghunathan, Associate Research Manager, Enterprise Networking, IDC India, said.