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January 30, 2015

Expect to See a 40 Percent Increase in Wireless LAN Market

The Dell’Oro Group is a firm specializing in strategic analysis in the networking and telecommunications industries. The company publishes quarterly market research reports. The firm publishes Wireless LAN quarterly reports which are designed to provide in-depth market-level and detailed vendor market share information. Some of the device segments that are included in the report are outdoor mesh nodes, SOHO and external client devices. The forecasts provide a comprehensive overview of market trends showing manufacturers’ revenue, units shipped, and average selling prices.

The five year prediction is that overall Wireless LAN (WLAN) market revenue is set to reach the $13 billion mark by 2019, which represents a 40 percent increase over 2014 figures. The information can be found in Dell’Oro Group’s quarter report entitled “Wireless LAN Five-Year Forecast Report.” The transition from the 802.11n standard to the newer and faster 802.11ac standard is progressing rapidly and above expectations in the enterprise segment. After only one year of product availability, the 802.11ac standard already accounts for about 19 percent of dependent access point shipments and 30 percent of dependent access point revenues.

Among the biggest driving factors for WLAN growth is the continued deployment of 802.11ac hardware. The 802.11ac Wi-Fi standard does offer the promise of increased wireless speeds that can scale up to 2.5 & 5 Gbps Ethernet interfaces on Access Points. Various reports show that 802.11ac hardware now represents 39 percent of all WLAN revenues and 26.5 percent of access point shipments. It also seems that the adoption rate for 802.11ac is faster than the adoption rate of the prior 802.11n Wi-Fi standard.

This has led Chris DePuy, vice president at Dell-Oro Group, to make the following comments, "We expect 2015 to be a pivotal year for the Enterprise-class WLAN market with the introduction of higher speed 802.11ac Wave 2 systems. This will drive a need for greater Ethernet speeds, opening the door for an upgrade cycle to 2.5 and 5 Gbps Ethernet, which will drive a potential upgrade cycle for Campus Switching as well."




Edited by Maurice Nagle


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