Market Overview

Flexibility of LAN network allows it to cater from as few as two or three users in small offices to several hundred users in larger offices. Enterprise networking forms the basis of organization functioning, owing to the requirements for connectivity between computing devices and other electronic devices across various workgroups and departments to enable easy data accessibility. Enterprise Networking LAN equipment helps in maintaining the interoperability of systems and devices to enable internal and external data management.

Urbanization and growing multinational business operations across the major economies of Americas, Europe and Asia Pacific has led to increased requirement for high speed infrastructure. Moreover, advent of 100 GE switch ports for faster internet connectivity, and easy availability of 40 GE, 10GE for other medium and small scale applications are projected to provide considerable traction to the global enterprise network LAN equipment market.

The concept of utilization of any critical applications through any device or pre-approved device is stimulating the need of wired and wireless connectivity for businesses. Trends that include Bring Your Own Device (BYOD), Choose Your Own Device (CYOD) and the requirement to enable the workforce connectivity within the enterprise will attract large demands for the enterprise network LAN equipment over the forecast period.

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Market Dynamics

Local area network servers can be used to download and store suite of application programs that are frequently used. On demand printing and ease of files sharing over multiple devices through the network are enabled through these applications. Thus, increasing number of data centers and need for efficient machine to machine communication will fuel the market demands. Moreover, increasing organizations reliance on cloud offerings such as Infrastructure as a service (IaaS), Platform as a Service (PaaS), and Service as a platform (SaaS) along with proliferation of fast speed internet services such as 3G, 4G and 4G LTE will provide increased requirements for enterprise network LAN equipment market.

Owing to ease of deployments, flexible work environment, low installation costs and long term cost benefits in terms of offering mobility to the workforce are the major advantages that in turn has led high inclination of the end users. However, concerns regarding internet security and loss of data privacy will provide consistent demands for wired and passive optical networks equipment in enterprises through the forecast period.

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Some of the chief market participants include Alcatel-Lucent, Brocade, Avaya, Cisco, Aruba-HPE, Juniper, Ruckus, Aerohive, Juniper and NEC. Industry is majorly characterized by acquisition of SMEs by major industry players to enhance their portfolio or security offered in the solutions. For instance, in March 2015, HPE acquired Aruba to enhance its switches and routers portfolio and has plans to continue its acquisition strategy. Cisco has also adopted similar strategy and has acquired ThreatGRID, OpenDNS, SourceFire, and Lancope which were acquisitions were aimed to enhance cyber security.

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