WLAN Market Nosedive to Show Signs of Recovery
Late 2024
REDWOOD
CITY, Calif., July 31,
2024 /PRNewswire/ -- According to a recently
published report from Dell'Oro Group, the trusted source for market
information about the telecommunications, security, networks, and
data center industries, Wireless LAN (WLAN) revenues are expected
to drop 13 percent in 2024, with lower prices exacerbating
depressed demand. Meanwhile, vendors sensitive to eroding
prices are cutting back on some functions of their Wi-Fi 7 APs, and
this is expected to increase the adoption of the new technology
over the next five years.
"The digestion of previous WLAN shipments and the cautiousness
of some enterprises due to macro-economic conditions has caused a
dramatic drop in revenues in the past two quarters," said Siân
Morgan, Research Director at Dell'Oro Group. "We expect to see
signs of recovery in 4Q 2024 once excess inventory is flushed
through the system, and the market returns to demand-driven
dynamics.
"IT budgets are stretched. On one hand, enterprises are under
pressure to figure out how Generative AI can revolutionize their
businesses. On the other hand, companies need highly performing
networks to enable digital transformations. Vendors sensitive to
these pressures are releasing cost-effective Wi-Fi 7 APs which will
help accelerate the adoption of this latest generation of Wi-Fi,"
added Morgan.
Additional highlights from the Wireless LAN 5-Year July 2024 Forecast Report:
- AIOps features are driving up license revenues and delivering
significant value to enterprises facing labor difficulties.
- Wi-Fi 6E adoption is still growing but will be eclipsed by
Wi-Fi 7 in 2025.
- If the closing of HPE's acquisition of Juniper Networks is
delayed due to regulatory concerns, WLAN revenues could suffer as
enterprises opt to wait before buying.
- The first AP shipments of the standard expected to be branded
as 'Wi-Fi 8' are expected in 2028 and will be focused on increasing
reliability instead of expanding capacity.
About the Report
The Dell'Oro
Group Wireless LAN 5-Year Forecast Report offers
complete, in-depth coverage of the Enterprise Outdoor and Indoor
markets, Wireless LAN Controllers with tables containing
manufacturers' revenue, average selling prices, and unit shipments
by the following wireless standards: 802.11bn (Wi-Fi
8), 802.11be (Wi-Fi 7), 802.11ax (Wi-Fi
6 and 6E [6 GHz]), 802.11ac (Wi-Fi
5) Wave 1 vs. Wave 2, 802.11n, and historic IEEE 802.11
standards. The Enterprise market is forecast by Cloud vs. Premises
Managed, as well as by macro region of the world. To purchase
this report, please contact us by email at
dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in
strategic competitive analysis in the telecommunications, security,
enterprise networks, and data center infrastructure markets.
Our firm provides in-depth quantitative data and qualitative
analysis to facilitate critical, fact-based business
decisions. For more information, contact Dell'Oro
Group at +1.650.622.9400 or visit
www.delloro.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cost-effective-wi-fi-7-models-will-drive-new-technologys-adoption-over-next-five-years-according-to-delloro-group-302209604.html
SOURCE Dell'Oro Group