Connect with us

Trends

Record level 3Q 2022 wireless LAN revenues defy ongoing supply problems

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, the Wireless LAN market hit a new record of $2.4 Billion in the third quarter, despite the continuing supply bottlenecks. The market grew a surprising 32 percent year over year; meanwhile, manufacturers still have a huge pile-up of backlogged orders.

“The third quarter saw the second highest level of shipment volumes in history – a testament to manufacturers’ excellent navigation of the supply constraints,” said Siân Morgan, Wireless LAN Research Director at Dell’Oro Group. “Their strategies of redesigning products, expediting components, and turning to brokerage firms are coming to fruition. On top of this, the high adoption of Wi-Fi 6 is driving up prices, having an accelerating effect on revenues.

“We predict that the fourth quarter will be another record, with prices rising for the 6th quarter in a row, and shipment volumes skyrocketing. We’re also making the bold prediction that next year the Enterprise Class Wireless LAN market will break the $10 Billion mark, two years earlier than we predicted,” added Morgan.

Additional highlights from the 3Q 2022 Wireless LAN Quarterly Report:

  • Wi-Fi 6E volumes are still lagging the adoption rate of the three prior Wi-Fi technologies, while the new 6 GHz ecosystem develops and the industry plans for the arrival of Wi-Fi 7.
  • A shift is underway in China, with Huawei ramping up its Wireless LAN shipments and seeing a drop in unit prices as the company expands to new market segments.
  • Of the major manufacturers based outside China, HPE Aruba and Ubiquiti represented the largest portion – over 75 percent – of unit shipment growth.
  • Arista and Ruijie Networks, two companies each with a small Wireless LAN market share, made bold moves focusing on expansion.
  • Public Cloud managed APs are growing faster than the market and represented 30 percent of Wireless LAN revenues.

CT Bureau

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2022 Communications Today

error: Content is protected !!