Enterprise WLAN market continues strong growth momentum

Increasing 43 per cent year over year

According to the International Data Corporation (IDC) Worldwide Quarterly Wireless LAN Tracker, the enterprise segment of the global wireless local area network (WLAN) market experienced a significant year-over-year growth of 43.3 per cent in the first quarter of 2023, reaching $US2.8 billion in revenue.

The growth in the enterprise WLAN market is primarily driven by the adoption of the latest WLAN standards, Wi-Fi 6 and Wi-Fi 6E. Wi-Fi 6 Dependent Access Points (APs) accounted for 78.6 per cent of dependent AP revenues in 1Q23. Additionally, Wi-Fi 6E, which extends Wi-Fi capabilities to the 6 GHz spectrum band, saw rapid momentum, with a sequential revenue growth of 14.1 per cent from 4Q22 to 1Q23, representing 10.4 per cent of dependent AP revenues.

In contrast, the consumer segment of the WLAN market experienced an 8.8 per cent decline year over year in 1Q23. However, Wi-Fi 6 adoption continues in the consumer segment, accounting for 47.6 per cent of the market segment’s revenues.

Brandon Butler, research manager at IDC, noted that the enterprise WLAN market’s growth can be attributed to the easing of component shortages and supply chain disruptions, allowing vendors to fulfill backlogged product orders. Additionally, the adoption of new Wi-Fi standards contributes to the market’s momentum.

The enterprise WLAN market demonstrated strong performance worldwide. In the United States, the market grew by 67.4 per cent year over year in 1Q23, while Canada experienced a 51.6 per cent rise. Latin America saw a significant increase of 80.9 per cent, while Western Europe grew by 51.2 per cent. In Central and Eastern Europe, there was a slight decline of 2.5 per cent. The Middle East and Africa region witnessed a revenue increase of 37.8 per cent, and the Asia/Pacific region (excluding Japan and China) rose by 33.0 per cent. However, the market declined by 13.0 per cent in the People’s Republic of China, while Japan experienced a 3.7 per cent increase.

In terms of market share, Cisco led the enterprise WLAN market with a 47.1 per cent share and $US1.3 billion in revenues, representing a 62.7 per cent year-over-year increase. HPE-Aruba held a market share of 16.0 per cent with a 39.5 per cent revenue growth. Huawei achieved a market share of 4.6 per cent with a 44.1 per cent increase in revenues. Ubiquiti captured a 5.9 per cent market share with an 18.7 per cent revenue growth. CommScope attained a 4.5 per cent market share with a substantial revenue increase of 62.6 per cent.

The IDC Worldwide Quarterly Wireless LAN Tracker provides comprehensive market size and vendor share data for the WLAN market. It covers major regions and countries, segmenting the market by product class, type, standard, and location. Measurement for the WLAN market is provided in terms of vendor revenue, value, and unit shipments.



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