Good Times to Come for Wireless LAN, Says Dell'Oro Group Forecast

The wireless LAN is a major tool for many users, but a recent study out from the Dell'Oro Group suggests that this particular tool is about to get even bigger. One of the group's newest forecasts points to substantial growth ahead—the market is set to expand over 45 percent by just 2018—but it's what goes into that forecast that will prove particularly telling.

The report in question, titled “Wireless LAN Five-Year Forecast Report,” offers as perhaps its centerpiece, the concept that the revenue figures in 2018 should be over 45 percent larger than the 2013 figures, reaching over $12.3 billion in 2018. That's a substantial gain by any stretch, but it really only gets more interesting when what's driving these hikes is considered. The Dell'Oro Group's report offered insight on several key points, including the upgrade cycle focused around 802.11ac hardware, the rise of cloud-managed wireless LAN services, issues accompanying service provider Wi-Fi, and the increasing trend of small and medium-sized businesses (SMBs) making purchases of enterprise-level hardware.

Dell'Oro Group vice president Chris DePuy offered some commentary on just what makes this purchasing cycle different from those seen in the past, saying “While it is risky to say so, this upgrade cycle looks like it will be different. New, higher-speed 802.11ac wireless systems are being offered at lower prices versus the now older 802.11n systems, and at a lower price premium than that of the prior upgrade cycle. We expect this to lead to robust adoption of 802.11ac devices by enterprises.”

That's a perfectly rational conclusion, really; if enterprise-grade hardware is being offered at lower prices than normal, than a reasonable SMB might think that it was a good opportunity to provide a note of future-proofing to its systems. Why save a little cash in the short term buying lower-tier equipment when, for just a little more money up front, a replacement purchase could be postponed for years? It also says a little something about the perceived health of businesses as well; why buy enterprise-grade equipment today if a business may have to close up in six months? These businesses likely expect to be going concerns for some time to come; otherwise why would said businesses buy hardware that's likely going to be a long-term prospect? Indeed, the other developments here contribute as well; the increase in cloud services is leading businesses to want high-quality connections, and the growth of bring your own device (BYOD) doctrines may be spurring a desire for better wireless connectivity.

There's plenty to drive a bit of a revolution in wireless LAN connections, but either way, it certainly looks like big things to come for the market over the next few years, a development that some sectors will likely find very encouraging.