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Enterprise Wireless LAN Market Surges 23%

June 22, 2021

According to a recently published report by Dell’Oro Group, worldwide Enterprise Wireless LAN revenue surged 23 percent year-over-year (Y/Y) due to continuing government spending, a broadening economic recovery, and rising equipment prices.

“For three sequential quarters now sales to the Hospitality and Retail verticals have been steadily rising off the 2Q20 lows,” said Matthias Machowinski, Senior Research Director at Dell’Oro Group. “These two verticals, in particular, are more reflective of private funding rather than verticals such as primary and secondary (K-12) education, which receives significant levels of public funding,” added Machowinski.

Additional highlights from the Wireless LAN 1Q21 Quarterly Report:

  • Average selling prices for access points rose in 1Q21, when they typically fall, this was due to:
    • A mix shift to higher-end, higher-priced access points optimized for high-density connectivity and high bandwidth, required by post-pandemic office environments with more building sensors, more video conferencing, and users requiring new applications such as location services for contact tracing and way-finding.
    • Rising component and transportation expenses.
  • The Wireless LAN recovery began in North America and APAC, and in 1Q21 expanded to EMEA and CALA, the only regions to decline in 2020.
  • Wi-Fi 6 revenue nearly tripled Y/Y, accounting for over half of access point revenue.

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