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Australian network gear market flat in 2018

By Dylan Bushell-Embling
Thursday, 11 April, 2019

Australian network gear market flat in 2018

The Australian networking infrastructure market grew a mere 0.81% year-on-year during 2018, as a result of steep declines in router and wireless local area network (LAN) revenues, according to IDC.

The Australian enterprise and service provider Ethernet switch market recorded a strong 10.1% growth in 2018 to US$614 million (857.7 million) — a five-year record — due to increased demands for high-speed ports including 25, 50 and 100 Gbps.

But the enterprise and service provider router market shrank 6.2% to US$329.3 million over the same period, and the wireless LAN market fell 11.9% to US$186.9 million.

IDC attributed the decline in the wireless LAN market to factors including low sales in the consumer and retail sector, as well as delays in spending by enterprises as they waited for the new 802.11ax Wi-Fi standard to be introduced.

“Overall, the networking infrastructure market experienced a stagnant growth in 2018. Growth achieved by the Ethernet Switch market was offset by the decline in the Router and Wireless LAN markets,” IDC Australia Networking Infrastructure Market Analyst Ahmar Karimullah said. “IDC expects this stagnation to be temporary.”

As mobile networks upgrade to 5G and as wireless LAN access points refresh to the 802.11ax standard, this will drive demand and once again “drive positive growth back to the networking infrastructure market”, added Karimullah.

IDC’s research also shows that Cisco dominates each segment of the total Australian market, with shares of 65% of the Ethernet switch market, 71.6% of the router market and 49.2% of the wireless LAN market.

Image courtesy IDC.

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