This blog post was originally published in Telecom
& Networking Communications Today.
The Indian market for LAN cabling systems is
about 30 years old now and is perhaps among
the top five markets in the world. It is a well-segmented market of about
US$150 million in sales based on OEM shipments in 2014. Information Technology
(IT), IT Enabled Services (ITES) and the banking, financial services and insurance
industries primarily drive demand in the enterprise segment. Manufacturing,
services (hospitality, hospitals, and education) and the government drive
mid-market vertical segments and to some extent the enterprise vertical as a
terms of LAN cabling products, the market is primarily driven by Category 6 copper and laser optimized OM3 multimode fiber optic cabling systems,
standards that were ratified almost a decade ago. Some believe that LAN cabling
products are basically the same, with no noticeable differences among
competitive models. However, the Indian market
is entering a phase of consolidation. OEMs as well as cabling integrators
who lack differentiated solutions, customer support and/or services are facing
severe headwinds and challenges in staying afloat. I expect this trend to drive
a hardening of prices that leads to
clear market segmentation among vendors.
“Grade A” office space is the best proxy for gauging demand in India for LAN
cabling systems, and totals about 36 million square feet per annum according to
a recent CBRE report. The report
also mentions that leading international architects are increasingly working
with realtors in India to develop
investment-grade buildings with large floor plates and international
specifications. Workspaces in such offices are increasingly divided into formal
and informal, collaborative work areas. Building sensors are being used for effective utilization of workspace,
thus saving on operating expenditures and improving office productivity.
a large number of customers are consolidating their offices in cities, leading
to renewed investments into cabling
systems. Such new investments are being made with an eye toward supporting
emerging networking technologies - IEEE 802.11ac WiFi, 10G to desk, 40G/100G in
data centers and riser backbones, and IEEE 802.3bt Power over Ethernet (PoE).
retail spaces, large warehousing and logistics, auto, hypermarkets and fashion
brands are new verticals driving demand
for Grade A office space.
smart cities initiative of the government, as outlined in “Smart City:
Mission Transform-Nation,” is driving the need to premium LAN cabling
systems. The Indian government plans to develop 100 smart cities based on the guidelines
and procedures, which state, “The application of Smart Solutions will involve
the use of technology, information and data to make infrastructure and services
coming year will be exciting time for India with the convergence of global
trends and regional initiatives creating new opportunities in the market.