Home Market ‘Promising year’ for Aussie networking infrastructure market: IDC
‘Promising year’ for Aussie networking infrastructure market: IDC Pixabay Featured

Good year-on-year growth by the networking infrastructure market in Australia may deliver a promising year for networking vendors, according to a new report from market analysts IDC.

The Australian Enterprise (including data centres) and Service Provider (SP) Ethernet Switch Market grew by 12.4% year-on-year in the first quarter 2018, according to IDC's APAC Quarterly  Ethernet Switch Tracker, and ended up generating revenues of US$122.4 million.

IDC says the market experienced an increase in shipment of high-speed ports (i.e. 25Gbps, 50Gbps and 100Gbps), and revenue coming from the enterprise space grew by 15% YoY, while SPs revenue growth was stagnant.

And most of the revenue generated in the SP landscape was from shipments of 25Gbps and 100Gbps speed ports.

The report notes that Cisco continues to lead the way, holding 66% of the market, followed by HPE Networks (7.5%), Juniper Networks (3.7%), Arista (3.6%) and Dell (2.5%) in 2018Q1.

The Australian router market for enterprise and SPs also showed strong YoY revenue growth of 25.5% and ended at US$78.67 million in Q1, according to IDC's APAC Quarterly Router Tracker.

peter idc chart

Shipment of high-end routers (>US$20,000) in SP and mid-range routers ((US$8000-US$20,000) in enterprises contributed to growth. Cisco continued as the top vendor with a market share of 70.8%, followed by Juniper Networks (14.2%), Nokia (7.8%), Huawei (4.7%) and Ericsson (1.5%).  

IDC says that although small in comparison to the ethernet switch and router markets, the Australian wireless local area network market in Q1 2018 made its mark by generating US$33.32 million in revenue, experiencing growth of 19.1% YoY.

And for the quarter, 88% of the total units shipped were 802.11ac access points (the latest WiFi standard which provides connectivity up to 1Gbps). In this market as well, IDC says Cisco remained on top by holding a market share of 58.3%,  followed by HPE (15.4%), Riverbed (6.8%), ARRIS Networks (5.14%) and D-Link (2.5%).

Ahmar Karimullah, IDC Australia’s ANZ Networking Infrastructure market analyst, said that Australians continue to adopt technology “at a good pace thus generating increased data traffic”.

“The development of both, on- and off-premises data centres, adoption of hybrid cloud environments, service providers’ preparation for 5G mobile technology adoption, cloud controlled Wi-Fi solutions, are factors driving growth in the computer networking market in Australia.”


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).


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