#United States #Redwood City #Wi-Fi 7 #Dell'Oro #WLAN

Recovery of WLAN Market with Wi-Fi 7 Adoption

The wireless networking landscape is experiencing a promising turnaround, as detailed in the latest report from the Dell'Oro Group. The telecommunications research firm reports a notable revival in enterprise-class Wireless LAN (WLAN) sales, which surged by 7% year-over-year (Y/Y), attributed significantly to the adoption of Wi-Fi 7 technology, now making up 11% of indoor access point shipments as of the fourth quarter of 2024.

Historical Context

2024 marked a tumultuous period for the WLAN market, which has faced unprecedented challenges. Siân Morgan, Research Director at Dell'Oro, stated, "The contraction in the 2024 WLAN market was the worst we have seen in over 20 years... however, with the effects of the COVID-19 pandemic receding, we are poised for robust double-digit growth in 2025." The recovery is primarily fueled by the industry's shift towards advanced Wi-Fi technologies, specifically the much-anticipated updates to Wi-Fi 6E and Wi-Fi 7.

Wi-Fi 7's Impact

The introduction of Wi-Fi 7 has made significant waves throughout the industry. The technology has been widely embraced, with vendors like Huawei, HPE, and H3C capturing a significant portion of the Wi-Fi 7 revenue market in the fourth quarter of 2024. Additionally, the report highlights that Wi-Fi 7 sales are now being recognized from over 11 different vendors, indicating a shift from early adopter phases to broader market acceptance.

Furthermore, previous leaders in the WLAN market are now being consistently challenged. Although Huawei has led in Wi-Fi 7 shipments thus far, competition is heating up with Cisco expected to enter the market in early 2025, potentially changing the hierarchy of WLAN providers.

Regional Shipment Trends

Despite the overall improvement in WLAN revenues, the report does indicate regional challenges. Shipments to regions such as China and the Middle East, along with Africa, have contracted. This has contributed to a global shipment decline compared to the fourth quarter of 2023 levels. Despite this, vendors like CommScope, HPE, and Ubiquiti are reporting double-digit growth in their WLAN revenues, which indicates pockets of resilience despite broader regional setbacks.

The Future Outlook

Looking ahead, industry experts anticipate that as the lingering effects of previous market downturns fade, we can expect a sustained rise in technology adoption. The transition to Wi-Fi 6E and 7 is anticipated to drive a significant upswing in sales through 2025. Morgan adds, "The future is undeniably bright for WLAN as enterprises upgrade their infrastructures to accommodate the bandwidth and speed required in today's data-driven environment."

In light of these developments, one notable concern arises—the U.S. Department of Justice's ongoing lawsuit against HPE, challenging its acquisition of Juniper on the grounds of market concentration.** This situation could introduce uncertainty in the public cloud-managed WLAN market, necessitating close monitoring.

Conclusion

The fourth quarter of 2024 represents a critical turning point for the WLAN market, with the ascendancy of Wi-Fi 7 underscoring a broader recovery narrative. The forthcoming year could potentially redefine market dynamics, driven by competitive innovations and a push towards more robust wireless solutions.