Cisco's Competitive Pricing Boosts Demand for Wi-Fi 7 Technology, Study Reveals

In a recent report released by the Dell'Oro Group, a well-established market research firm, a notable resurgence in the Wireless LAN (WLAN) sector was recorded. The report highlights that the enterprise-level WLAN revenue has seen a consistent double-digit growth for two consecutive quarters, overcoming the previous year's challenges and signaling a robust recovery in the market. The driving force behind this remarkable upswing appears to be Cisco’s strategic pricing policies concerning its new Wi-Fi 7 access points (APs).

The Impact of Cisco’s Pricing Strategy

According to Siân Morgan, the Research Director at Dell'Oro Group, Cisco has notably positioned its average price for Wi-Fi 7 access points significantly lower than the initial costs of Wi-Fi 6E when it was first launched. This strategic decision has effectively catalyzed the market's transition towards the latest Wi-Fi standard, enticing enterprises to make the switch. Morgan asserts that affordability is a crucial factor in adoption rates, particularly during times when businesses are looking to upgrade their technology without incurring substantial costs.

Key Findings from the 2Q 2025 WLAN Market Report

1. Growth across Major Players: Competing brands such as CommScope and Ubiquiti reported astounding revenue growth, exceeding 70% when compared to the same period last year. This indicates a broader industry trend toward WLAN technology that is no longer centered solely on Cisco.

2. North American Surge: The North American region experienced the most significant growth, outperforming all others with an expansion rate exceeding 20%. This is a strong indication that the region is embracing next-generation wireless technology at a faster pace.

3. Public Cloud-managed WLAN: The report notes that WLAN services managed via the public cloud are outpacing the overall market growth. This trend is largely attributed to the increasing demand for subscription-based licensing that incorporates advanced AI features. Enterprises prefer to pay ongoing fees for such features, valuing the enhanced operational capabilities they bring.

4. Stirring Activity and Future Prospects: The report further outlines an uptick in acquisition activity within the IT equipment sector. The implications of this will likely unfold in the WLAN market as firms begin to integrate new technologies and capabilities.

The Role of AI in WLAN Growth

A noteworthy mention in the report is the growing significance of AI-driven features in tech offerings. As organizations shift toward more sophisticated IT solutions, the incorporation of artificial intelligence into their operations is becoming increasingly essential. Many businesses are now opting for licensing arrangements that not only allow access to WLAN technology but also include AI functionalities, thereby enhancing productivity and offering value-added services.

Conclusion

The findings from the Dell'Oro Group's report underline a pivotal moment for the WLAN market, largely fueled by Cisco's competitive pricing strategies. As the market continues to adapt to new technologies like Wi-Fi 7, it will be interesting to observe how both established and emerging players navigate the landscape in the coming months. The focus on cloud-managed solutions and AI capabilities will likely define the strategic directions of enterprises in the WLAN space.

For organizations looking to future-proof their operations and enhance connectivity, now appears to be an opportune time to consider transitioning to newer technologies like Wi-Fi 7. Keeping an eye on the evolving market dynamics and adapting accordingly will be crucial for achieving long-term success in this competitive environment.