The fourth quarter of 2022 saw record shipments of enterprise-geared wireless LAN (WLAN) devices, mostly Wi-Fi devices, with volumes topping 10 million in the period, according to research firm Dell’Oro Group. Revenues spiralled upwards, alongside, to reach $3 billion, also a record. Cisco shipped “more than it ever has”, said Dell’Oro Group; indeed, two thirds of major Wi-Fi vendors posted record sales.
Dell’Oro Group said WLAN records were smashed as supply constraints eased, and despite lower sales to China. Average WLAN prices climbed in the period, accelerating the revenue uplift higher on rising shipments. The total market enterprise class WLAN products was worth $9.4 billion in 2022. “We are well on our way to surpassing $10 billion in 2023 industry revenues,” said Dell’Oro Group.
Huawei’s sales revenues shifted regionally, with most sales growth in the Europe, Middle East and Africa (EMEA) and Caribbean and Latin America (CALA) regions, and not in China. All major vendors outside China still have unusually high backlogs, said Dell’Oro Group. Supply-chain issues have eased, but have not been resolved. Average unit prices, “heavily influenced by product mixes”, will peak in 2023.
Penetration of Wi-Fi 6 products is increasing, but has not peaked in terms of adoption rate. Wi-Fi 6E adoption among enterprises is “lagging that of previous technologies”, said Dell’Oro Group, as regulators and industry participants are “finalising their positions” on use of the 6 GHz band ahead of the World Radiocommunications Conference (WRC) in Dubai. Enterprises are already placing orders for Wi-Fi 7 access points, as products ready to launch.
Public cloud managed solutions are still taking market share from on-prem and private edge cloud solutions, although the gap narrowed in the quarter. Siân Morgan, research director at Dell’Oro Group, stated: As the last of the supply constraints loosen, manufacturers’ ability to fulfil the outstanding WLAN orders will keep improving. As a consequence, the trajectory of year-over-year growth is expected to extend into the first half of 2023.”
Dell’Oro Group has a new report all about it, available for purchase here.
