According to a report published by Dell’Oro Group revenues grew Q/Q to $2.2 billion in the enterprise class Wireless LAN (WLAN) market for 2Q. There has been an uptick in the adoption of Wi-Fi 7 with Huawei being accountable for shipping over half of the globe’s units.
“While WLAN revenues dropped significantly Y/Y, the fact that 2Q registered the first Q/Q growth in a year is a positive sign for the industry,” said Siân Morgan, Research Director at Dell’Oro Group. “During the famine and feast of the supply chain problems, the market share ranking of some vendors has been volatile. Juniper’s Mist WLAN has climbed up 3 positions on the market leader table, overtaking CommScope, Extreme, and H3C on a trailing four-quarter basis. Now that the demand-driven market is returning, vendors will be fighting to re-establish their market position.”
Now in 3Q of 2024, the WLAN revenues increased Q/Q again, hitting $2.3 billion. Wi-Fi 7 adoption kept increasing with shipments of the technology growing 69% over 2Q 2024.
“In 3Q 2024, the worldwide WLAN market performed better than it has in a year,” said Siân Morgan, Research Director at Dell’Oro Group. “This recovery has been gradual – and we are predicting that WLAN revenues will see significant Y/Y growth in 4Q 2024.”
“Software license revenues expanded double digits Y/Y and much of this growth is from vendors who have transitioned to a recurring model for software fees,” continued Morgan. “The adoption of Wi-Fi 7 is material and will keep growing in 2025, once all major vendors are recognizing revenues from the products that have been announced. In 2025, we expect that nearly 40 percent of manufacturers’ Indoor AP revenues will come from Wi-Fi 7,” continued Siân.
Another noteworthy highlight from the 3Q 2024 Wireless LAN Quarterly Report is Dell’Oro Group’s prediction that in 2025 new AI-Ops features for Wireless LAN will be announced, as well as add to the consistent growth of recurring software revenues.
