WLAN Vendors Headed for Rocky Waters as Market Set to Contract 9 Percent in 2024, According to Dell'Oro Group

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Jan 31, 2024, 08:00 ET

Wi-Fi 7 Sales Will Lift the Market to Growth in 2025

REDWOOD CITY, Calif., Jan. 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, sales of Wi-Fi 7 Access Points (APs) will reach nearly three quarters of total APs revenues by 2028. The introduction of Wi-Fi 7 to enterprises will be one of the few bright spots for vendors in 2024, in a market that is expected to contract by 9 percent.

"There has been a flurry of vendors announcing new Wi-Fi 7 APs in January," said Siân Morgan, Wireless LAN (WLAN) Research Director at Dell'Oro Group. "We expect that Wi-Fi 6E APs will still outsell Wi-Fi 7 in 2024, but adoption of Wi-Fi 7 will be responsible for all of the revenue growth by 2025.

"However, total WLAN AP revenues are expected to decrease in 2024. After the backlog-driven revenues of 2023, enterprises are busy digesting all the equipment they received. It's going to take a few more quarters of downturn before the market begins to expand again," continued Morgan.

Additional highlights from the Wireless LAN 5-Year January 2024 Forecast Report:

The geographic balance of WLAN revenues changed in 2023, with North America and Europe taking share from China.
Wi-Fi 6E adoption is still growing but is forecasted to peak in 2024.
Average Selling Prices for APs are expected to contract, putting further pressure on vendor revenues.
HPE's announced intent to purchase Juniper Networks has increased expectations of revenues from Public Cloud-Managed WLAN.
The first AP shipments of the standard expected to be branded as 'Wi-Fi 8' are expected in 2028.

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 [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