In 2020, China's network market: routers benefit from new infrastructure, and the Internet industry increases investment in switches

Recently, IDC released the "2020 Network Market Tracking Report", which showed that the size of China's network market was US$1.51 billion (approximately RMB 10.6 billion), a year-on-year decrease of 13.8%, of which the switch, router and WLAN markets decreased by 14.6%, 10.9% and 23.0% respectively.

In the report, IDC predicts the development focus of the router, switch and WLAN markets in 2020. IDC pointed out that as the foundation of new infrastructure, the continued investment and construction of 5G this year is expected to continue to bring growth in routers.

In terms of switches, IDC analyzed that the Internet industry has fully demonstrated the advantages of e-commerce in special periods, new retail has gained better development opportunities, data center investment is still continuing, 25G/100G products have a high growth rate and continue to replace 40G. Given the pace of Internet investment and the impact of the external environment, it is expected that the Internet industry's investment in switches this year will be better than in 2019.

The WLAN market has maintained a strong contribution in responding to national policies and further popularizing ICT infrastructure. At the product level, WiFi 5 AP is still the mainstream product in the market. It is worth mentioning that WiFi 6 AP accounts for nearly 10% of revenue. Mainstream manufacturers continue to enrich WiFi 6 models, increase new features and strategic investment, and it is still a key product this year.