WLAN Market Sees Strong Recovery with Double-Digit Growth Amidst Technology Shift to Wi-Fi 7

Wi-Fi 7 Takes Center Stage in the WLAN Market

The Wireless Local Area Network (WLAN) market has shown remarkable resilience, reflecting strong growth as reported by the Dell'Oro Group. Their recent quarterly report indicates an impressive 11% increase in year-over-year revenue, showcasing the sector's recovery. With the advent of Wi-Fi 7, this growth trend is expected to continue as more enterprises transition to this latest technology.

In Q1 2025, the deployment of Wi-Fi 7 has surged dramatically, comprising 12% of all WLAN units shipped globally. As Siân Morgan, Research Director at Dell'Oro, pointed out, this quarter marks a significant milestone: all major vendors have begun shipping Wi-Fi 7 solutions.

Shifts from Wi-Fi 6E to Wi-Fi 7

Previously, many manufacturers had been dealing with extensive inventories of Wi-Fi 6E technology while prioritizing shipments. However, as the Wi-Fi 6E growth phase comes to a close, there is a notable shift toward Wi-Fi 7 as companies look to adopt state-of-the-art networking capabilities. This transition underscores the ongoing technological shift within the enterprise networking sector, illustrating a movement towards greater efficiency and performance.

Embracing AI Technologies

In addition to the technological advancements in WLAN solutions, vendors are increasingly incorporating Artificial Intelligence (AI) and Machine Learning (ML) into their operations. By utilizing these advanced technologies, companies are developing AI models that provide cross-domain troubleshooting. This assists front-line support teams while creating dynamic dashboards tailored to specific needs. The enhancement of operations through AI is projected to significantly boost recurring software revenues for WLAN providers.

Market Dynamics and Regional Insights

The report highlights strong performance from key players such as CommScope, Ubiquiti, and Extreme Networks, all of whom outpaced their competitors in WLAN revenue growth. Notably, the North American market experienced significant shipment increases, highlighting its dominance within the WLAN landscape. Other regions, while lagging slightly behind, are still seeing gradual increases in WLAN adoption.

Despite lower pricing pressures as the average selling price for Wi-Fi 7 remains below that of Wi-Fi 6E, the influx of cost-effective options in the early stages of Wi-Fi 7 adoption indicates a competitive advantage for budget-friendly vendors. This trend suggests that the market may see a democratization of technology, making it accessible to a broader range of enterprises.

Regulatory Environment Shifts

In regulatory news, the US Department of Justice is set to challenge Hewlett Packard Enterprise’s proposed acquisition of Juniper Networks on July 9, 2025. HPE has signaled its commitment to pursuing this deal despite the impending legal scrutiny, which could have implications for market competition and thus affect WLAN procurement strategies moving forward.

Conclusion

The growth of the WLAN market, propelled by a commitment to advanced technological solutions like Wi-Fi 7 and the integration of AI, marks a promising shift for businesses and consumers alike. For organizations evaluating their network infrastructure, the latest developments present both challenges and opportunities, as increased connectivity and operational efficiency become paramount in today's digital landscape. As businesses navigate these dynamic changes, staying ahead of technological trends will be crucial for maintaining a competitive edge and fostering innovation.

For further details, check the complete Wireless LAN Quarterly Report from Dell'Oro Group. To acquire this insightful market data, you may contact Dell'Oro Group at info@delloro.com.