Skip to main content

Worldwide WLAN Equipment Market Upside

Worldwide sales of wireless LAN equipment, including independent and dependent access points and WLAN switches and controllers, reached $1.9 billion in 2007, up 20 percent from 2006, driven by the increased rollout of enterprise wireless LANs and accelerating upgrading to 802.11n, according to the Infonetics Research latest market study.

Sales of enterprise single mode Wi-Fi phones also jumped, up 61 percent in 2007, as adoption of wireless VoIP continued to penetrate the enterprise market, their report shows.

Wireless LAN is becoming an increasingly ubiquitous technology and is commonly embedded into laptops, PDAs, phones, game consoles, and media adapters. Its widespread availability, affordability, flexibility and usage will make it an important technology even as other high speed wireless technologies like 3.5G and mobile WiMAX come to the fore.

Additionally, WiFi-enabled smartphones like the iPhone and RIM's WiFi Blackberry will significantly increase WiFi hotspot traffic. In January 2008, AT&T, which offers the iPhone in the U.S. market, took over Starbucks' hotspots from T-Mobile, giving this segment an injection of fresh stimulus.

Highlights from the Infonetics report include:

- For the quarter, worldwide wireless LAN equipment revenue is down 1 percent in 4Q07, following an all-time high in 3Q07.

- Worldwide WLAN revenue is forecast to reach $3.4 billion in 2011.

- WLAN switch and controller revenue is up 15 percent in 4Q07, driving dependent access point shipments.

- The speed benefits of 802.11n products are undeniable, but adoption will be gradual, as enterprises want to see a return on their 802.11g investments before upgrading.

- Cisco continues to dominate the worldwide WLAN equipment market, holding the #1 position in enterprise and service provider segments, with WLAN revenue now topping $200 million each quarter.

- The jostling between Aruba and Motorola for #2 position in the still-growing enterprise segment continues, with Trapeze Networks leading the rest of the chasers.

Infonetics' report tracks WLAN independent access points split by enterprise and service provider, dependent access points, WLAN switches and controllers, and enterprise single-mode Wi-Fi phones. WLAN hardware revenue is broken out by enterprise and service provider customers.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....