Indian IT Market Overview – Peripherals

By : |June 23, 1999 0

Since the fortunes of the peripherals industry are closely linked with that of the PC
industry, peripherals also recorded a healthy growth rate in 1998-99, at least in unit
terms. However, rapid cuts in prices put the revenue growth at only a little over 11

Almost 60 percent of total peripheral revenues came from printers. There was a distinct
trend towards inkjet printers, with the share dot matrix printers falling below the half
way mark for the first time. Heavy competition between vendors led to a significant drop
in the average sales value of printers, because of which growth rate by value was much
lower than that by units. Colour printing gained widespread acceptance as almost all
inkjet printer vendors made colour the default choice.

Among other peripherals, scanners recorded the maximum growth, with unit shipments
increasing more than three times. The growth rates for peripherals like monitors and hard
disk drives has moved closely in sync with that for PCs and systems.

Datacom Products
The size of the Indian datacom market during 1998-99 was
Rs.913 Crore, which represents a healthy 34 percent growth over 1997-98. A major share
(about 43 percent) of this revenue came from LAN products i.e. Network Interface Cards
(NICs), hubs, switches and routers. It was an exceptionally good year for LAN products,
which grew by 45 percent over 1997-98.

The Indian datacom market seems to be coming of age. Excitement is building up in the
WAN and remote connectivity areas. The Remote Access Server market got a shot in the arm
with the opening up of the Internet in November 1998. The RAS hardware revenues jumped up
more than six times in 1998-99. The market for WAN switches also looked promising in terms
of revenue growth rate, although their overall value is still very small.

Packaged Software
The Indian packaged software market grew 14 percent in
1998-99, with revenues crossing Rs.1300 Crore. Elimination of duties, increased usage of
legal software, growth in usage of ERP solutions and increased adoption of suites and
RDBMSs were the main drivers for growth in the packaged software market.

Currently Application Development Tools account for the largest share in the Indian
packaged software market. However, the fastest growth is being exhibited by Application
Solutions. In the coming years Application Solutions are slated to become the largest
segment of the packaged software market. The boom in the ERP market will fuel this growth.
The share of System Level Software is expected to decline due to falling prices and
increase in bundling of operating systems with PCs.

Growing at over 20 percent in 1998-99, the Indian IT Services
market is slowly gaining momentum. Nevertheless, most Indian corporates continue to be
slow at changing their attitude towards IT services. Many of the users continue to take
services for granted and are unwilling to pay for them. IDC believes that the attitudes of
users are slowly but surely changing.

With a share of over 38 percent, Hardware/ Software maintenance is the largest
component in the IT Services market in the country. Customised software development and
LAN/WAN implementation are the other important components. An important area, whose market
size is currently small but has tremendous potential, is that of IT Consulting

Peripherals, software and services

No Comments so fars

Jump into a conversation

No Comments Yet!

You can be the one to start a conversation.