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Global Enterprise WLAN Continues Strong Momentum

By Sarah Chen
2 min read
Cybersecurity
Cybersecurity
In this article (5)

The enterprise segment of the worldwide wireless local area network (WLAN) market continued its strong growth in the first quarter of 2022 (1Q22) with revenues increasing 17.1% year over year to $1.95 billion, according to results published by the International Data Corporation (IDC).

The 17.1% annualized growth builds on the enterprise WLAN market growing 20.4% in 2021 compared to 2020. Growth in the enterprise WLAN market continues to be driven by the latest Wi-Fi standard, known as Wi-Fi 6 or 802.11ax. Wi-Fi 6 access points made up 70.3% of the revenues in the Dependent Access Point (AP) segment and accounted for 59.3% of unit shipments within the segment. Wi-Fi 5 products, also known as 802.11ac, made up the remaining balance of Dependent AP sales.The consumer segment of the WLAN market declined 3.6% in 1Q22 with the quarter’s unit shipments declining 2.2% on an annualized basis. Adoption of Wi-Fi 6 continues in the consumer segment of the WLAN market too: In 1Q22, Wi-Fi 6 made up 31.4% of the market’s revenues, up from 28.2% in the fourth quarter of 2021.

“In the first quarter of 2022, enterprises around the globe continued to invest in WLAN technology as a key component of their network and digital transformations. Meanwhile, the Wi-Fi 6 standard continues to be a significant driver of growth in the enterprise WLAN market as enterprises deploy in the newest Wi-Fi technology,” said Brandon Butler, Research Manager, Network Infrastructure at IDC. “After a rocky macroeconomic environment over the past two years due to the COVID-19 pandemic, the enterprise WLAN market continues to be resilient as organizations invest in wireless connectivity.”

From a geographic perspective, the enterprise WLAN market grew across most regions of the world. Growth was particularly strong in Asia/Pacific, where the market in the People’s Republic of China grew 55.6% year over year in 1Q22. In the broader Asia/Pacific region (excluding Japan and China) (APeJC), the market increased 22.3% in the first quarter; Japan’s market declined 4.8% in 1Q22.

The enterprise WLAN market in the US rose 8.8% year over year in 1Q22. Canada’s market declined 2.5%, while the market in Latin America rose 27.6% in the quarter. In Western Europe the market grew 20.6% in 1Q22; in Central and Eastern Europe the market grew 2.1% in the quarter and in the Middle East & Africa, the enterprise WLAN market rose 19.5% year over year. At the country level, Germany was the largest market in Western Europe, making up 21.2% of the region’s revenues. In Germany, the market grew 37.6% year over year in the first quarter, propelling growth for the broader Western European region.

 

Questions & Answers

Q.

What was the total revenue for the global enterprise WLAN market in the first quarter of 2022?

A.

Total revenue for the enterprise WLAN market reached $1.95 billion in the first quarter of 2022. This represented a significant 17.1% increase compared to the same period in the previous year.

Q.

Which specific Wi-Fi standard is primarily driving the growth in the enterprise WLAN market?

A.

The latest Wi-Fi standard, known as Wi-Fi 6 (802.11ax), is the main driver of growth. It accounted for 70.3% of revenues and 59.3% of unit shipments in the Dependent Access Point segment.

Q.

How did the consumer segment of the WLAN market perform compared to the enterprise segment in 1Q22?

A.

The consumer segment experienced a decline, with revenues falling by 3.6% and unit shipments dropping by 2.2% year-over-year. This contrasts with the strong growth seen in the enterprise segment.

Q.

Which geographic region showed the strongest growth in the enterprise WLAN market?

A.

Asia/Pacific demonstrated particularly strong growth. Within this region, the market in the People’s Republic of China saw a substantial increase of 55.6% year over year in the first quarter of 2022.

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