SOURCE: Infonetics Research

December 16, 2008 13:50 ET

Infonetics Research: Slowdown forecast for wireless LAN equipment market after increase in 2008

LONDON--(Marketwire - December 16, 2008) - Communications market research firm Infonetics Research reports the wireless LAN infrastructure market was down in 3Q08 in all world regions except North America, which buoyed the overall market just enough to keep it sequentially flat at $506 million.

Infonetics' report, Wireless LAN Equipment and Phones, forecasts worldwide wireless LAN equipment manufacturer revenue to end the year up 5% in 2008 but to fall in the double digits in 2009 as the global recession deepens and enterprises and WiFi service providers feel the effects of the downturn.

Because wireless LAN technology is fundamentally useful to a wide user base, the decline in 2009 will not be prolonged, with revenue growth returning by 2010-2011, as end-user demand for future WAN protocols sustains market growth over the long term, the report contends. The now-accelerating adoption of 802.11n is a good example of this, as shown by the increasing number of notebooks and PDAs embedded with 802.11n.

Recent merger and acquisition activity is another sign that wired and wireless LAN convergence is accelerating.

"There have been a couple of significant acquisitions in the wireless LAN space recently, including Belden Networks' acquisition of Trapeze Networks, and ProCurve's acquisition of Colubris. It remains to be seen whether Aruba, the highest performing of the wireless LAN switch startups, will continue to go solo or be an acquisition target. This M&A activity shows that wireless LAN has become a more integrated part of the overall LAN environment, and that wired/wireless LAN platform convergence is accelerating, driven by enterprise demand for unified communications and FMC applications," said Richard Webb, directing analyst for wireless at Infonetics Research.

Other highlights from the report:

--  Cisco continues to dominate the worldwide wireless LAN equipment
    market, holding the #1 position in enterprise and service provider
    segments, with 56% overall market share
--  Aruba is solidly in second position for worldwide WLAN revenue share,
    followed by Motorola
--  The worldwide enterprise single mode WiFi phone market is up 6% in
    3Q08
--  Polycom and Cisco are neck and neck in the race for WiFi phone unit
    share, but Polycom still leads in revenue by a long shot
    

Infonetics' report tracks 3Com, Aerohive Networks, Aruba Networks, Belden, Browan, Cisco, Colubris, D-Link, Extreme Networks, Gemtek, HTC, Meru Networks, Motorola, NETGEAR, Polycom, ProCurve, Proxim, Siemens SHC, SMC Networks, Trapeze Networks, Vocera, and others. The report provides market size, market share, and forecasts for service provider and enterprise WLAN equipment (independent access points, dependent access points, WLAN switches and controllers), and enterprise single-mode WiFi phones.

For report highlights, log in to Infonetics' online portal from www.infonetics.com (see Enterprise Data). For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Contact Information

  • Press Contact
    Richard Webb
    Directing Analyst, WiMAX, Microwave, Mobile Devices
    Infonetics Research
    +1 (408) 583-3369 or +44 (0) 1689-851-618
    Email Contact