Juniper, Extreme, and Cisco Expand Amidst Market Deceleration
REDWOOD CITY, Calif., Nov. 30, 2023 /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, vendors depleted their backlogs of Wireless LAN (WLAN) orders faster than expected, bringing worldwide revenues down 4 percent year-over-year (Y/Y) in 3Q 2023. Following an unprecedented stretch of revenue expansion, vendors are now reporting flat or declining orders from enterprises, and the slowdown is expected to last for several more quarters.
"3Q 2023 was an inflection point in the WLAN market. A large variability in vendor revenues summed to a slight market contraction," said Siân Morgan, Research Director at Dell'Oro Group. "Cisco eked out a 3 percent Y/Y gain on a calendar quarter basis, with license revenues supporting the expansion despite a decline in the number of units shipped.
"The next few quarters are expected to be a challenge for WLAN vendors. Enterprises and system integrators must take the time to deploy the equipment they received before embarking on new projects. In addition, the return to demand-driven conditions is expected to put downward pressure on unit prices. Only a select few vendors can grow WLAN revenues in these market conditions," continued Morgan.
Additional highlights from the 3Q 2023 Wireless LAN Quarterly Report:
- Y/Y revenue growth varied widely from vendor to vendor, ranging from under -50 to over +50 percent.
- Price growth helped soften the decline in unit shipments, but prices for the different Wi-Fi technologies are shifting.
- More vendors recognized Wi-Fi 7 revenues, but enterprise class Wi-Fi 7 sales will not become significant until 2024. Meanwhile, Wi-Fi 6E adoption continued to climb slowly in 3Q 2023, to just over 10 percent of units shipped.
- Not all verticals declined with the market. For instance, WLAN sales to the Healthcare vertical grew Y/Y in 3Q 2023.
- WLAN sales to the major regions were flat or down, while the smaller regions grew Y/Y.
- Revenues from Public Cloud-Managed WLAN contracted Y/Y for the first time in history, although they still outperformed Premises+Private Cloud-Managed WLAN on a Y/Y basis.
About the Reports
The Dell'Oro Group Wireless LAN Quarterly Report offers complete, in-depth coverage of the Enterprise Outdoor and Indoor markets, Wireless LAN Controllers and Licenses, with tables containing manufacturers' revenue, average selling prices, and unit shipments by the following wireless standards: 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 portrayed by Public Cloud vs. Premises and Private Cloud deployments, by geographic region, as well as by ten Vertical markets. To purchase these reports, please contact us by email at [email protected].
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.
SOURCE Dell'Oro Group
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article