Public Sector Enterprise Networking In APAC To Escalate At Rate Of 13%

The public sector enterprise networking market is estimated at around US$1.38 billion in 2010, and is forecast to grow at a Compounded Annual Growth Rate (CAGR) of 13% from 2009-2013, says the latest “Enterprise Networking in the Public Sector” report from Springboard Research. Springboard noted that the market comprises about 3.5% of the total IT market.

Network Security Market to Grow Strong

The Springboard report notes that while data communications equipment will continue to form the largest share of revenues, network security investments are also expected to grow strongly, given its critical importance to network infrastructure. “This is primarily because with the increase in the usage of applications, cloud and outsourcing services, data and network security will assume high priority,” explains Nupur Singh Andley, Associate Research Manager- Connectivity at Springboard Research.

In terms of verticals, social services entails large public sector networking equipment investments, driven by the aggressive initiatives of governments in the region. Of the total public sector spending on enterprise networking equipment, education is expected to receive a large chunk in 2010. Springboard attributes it largely to e-education initiatives of the governments of countries such as South Korea, China and India. Healthcare is another big contender for public sector networking spending, followed by utilities/public works and defense/public safety.

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Advanced vs. Emerging markets

For most emerging markets in the region such as China, India, and parts of ASEAN, 2009 was the year of government network rollout and deployment of their basic telecom and applications infrastructure. Springboard predicts that moving forward, 2010 is expected to bring network and services infrastructure consolidation and the build-up of intelligent, integrated service delivery platforms and applications for government-citizen and government-government services.

In advanced Information and Communication Technology (ICT) markets such as Australia and Singapore, ICT and networking equipment growth is expected to be relatively low as technology adoption is already high in the public sector. However, other emerging public sector markets such as India, China, Korea and ASEAN signify booming opportunities as these markets struggle to build their nationwide telecom network infrastructures and efficiently bridge the urban-rural divide.

“E-government initiatives are likely to drive adoption of enterprise networking equipment, especially in emerging markets such as India and China. Despite their impressive initiatives towards e-governance and digital inclusion, these countries have a long way to go in terms of infrastructure development and service delivery, " says Andley.