The APeJ Ethernet switch market grew 21% during the fourth quarter, with vendor revenues of $131.23 million, IDC research indicates.
Increased spending from the enterprise segment due to technology refreshes drove the overall LAN market in Q4 2016.
There was a significant increase in uptake of L3 and ADC switches in both the enterprise and service provider segments in Q4 2016. Investments in the government, education, telecom, professional services and BFSI were the key drivers for growth this quarter.
But the router market witnessed a year-on-year decline of 4% to $69.2 million.
The router market was propped up mainly by investments from the service providers for 4G rollouts and technology refreshes in Q4 2016. Increased uptake of high end router from the service provider segment and the enterprise segment drove the market.
With the evolving network environment and the huge amount of data available, adoption of advanced analytics in this area is becoming mainstream. This will enable efficient network management for improved performance. Also in 2016, there was an increased uptake of SDN deployments and NFV POCs.
Cisco continues to be dominant in Q4 2016 with a 65.74% market share, followed by Huawei and HPE. Avaya posted a significant growth in Q4 2016 mostly due to increased investments in the enterprise space.