Wednesday, April 1, 2015

Infonetics: Wireless LAN Gear Neared $5 Billion in 2014

Almost 1.2 million 802.11ac access points shipped in the fourth quarter of 2014 (4Q14)-a quarter of all access points-cannibalizing 802.11n rather than the older 802.11a/b/g access points, according to a new report from Infonetics Research (now part of IHS).

Some highlights:

  • Worldwide wireless LAN (WLAN) equipment revenue reached $4.9 billion in 2014, growing just 6 percent over 2013-a far cry from the 20-percent-plus annual increases of a few years ago
  • In 4Q14, WLAN equipment sales totaled $1.3 billion, up 5 percent quarter-over-quarter, and up 10 percent year-over-year
  • Though demand for WiFi connectivity continues unabated-access point shipments were up 22 percent year-over-year in 2014-revenue growth has run out of steam due to fewer service provider and K-12 WiFi sales, 802.11ac not yet lifting ASPs, controller-less approaches and low-cost solutions
  • There was higher than usual demand for WiFi phones in 4Q14, influenced by a large number of deals, but this isn't expected to be sustained in 2015
  • Despite fickle economic conditions, EMEA (Europe, Middle East, Africa) was the fastest-growing major region in 2014, up 9 percent
  • Among the top 5 WLAN vendors-Aruba, Cisco, HP, Ruckus and Zebra-Ruckus led revenue growth in 2014.


"A pullback in K-12 spending in the US has caused a significant slowdown in the WLAN market, which, after having grown at double-digit rates for several years, grew only 6 percent in 2014," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

http://www.infonetics.com

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