Enterprise WLAN Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Organization Size (Small and Medium Enterprises, and Large Scale Enterprises), By Industry (BFSI, IT & Telecommunication, Healthcare, Retail, Government, Hospitality, Education, and Others), and Regional Forecast, 2021-2028

The global enterprise WLAN market size was USD 6.31 billion in 2020 and is projected to grow from USD 6.52 billion in 2021 to USD 9.59 billion by 2028 at a CAGR of 5.7% during the 2021-2028 period. North America dominated the global market with a share of 42.31% in 2020. The global impact of COVID-19 has been unprecedented and staggering, with enterprise WLAN witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 3.3% in 2020 than the average year-on-year growth during 2017-2020. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

In the scope of the study, we have included key players such as Commscope, Inc., D-Link Corporation, Dell Technologies, Inc., Huawei Technologies Co., Ltd., Juniper Networks, Inc., and others. These players offer products and solutions such as indoor AirEngine 8760-X1-PRO Access Points ap, AirEngine 6700R Series Outdoor access points, and others, by Huawei Technologies Co., Ltd. Also, Wi-Fi 6 products include Wi-Fi Routers, M15 AX1500 Mesh Router by D-Link Corporation, Secure Wireless LAN, FAP-831F, FAP-431F, FAP-433F, FAP-432F indoor and outdoor wireless access points offered by Fortinet, Inc. These enterprise WLAN products are widely used for high-speed internet connectivity.

Enterprise WLAN is a network of wireless distribution that connects multiple devices to the internet and facilitates access over public and private cloud services. The rising adoption of Internet of things (IoT) devices, the emerging trend of bringing your own devices (BYOD), drive the Enterprise WLAN solutions growth. According to Forbes, the companies in the U.K. with BYOD occurred in around 60% from the finance and insurance companies. Also, the surge in demand for broadband connectivity and increase in internet usage across enterprises around the globe drives the market growth. According to the Wi-Fi Broadband Organization, internet usage through digital platforms such as video conferencing increased by 300% from February to October 2020 in the U.S.

Increasing demand for network devices such as controllers, gateways, routers, switches, and others also drives the Enterprise WLAN solutions growth.

COVID-19 Impact

WLAN Hardware Products Sale Declined Owing to Government Restrictions on Travelling and Supply Chain Disruptions Amid COVID-19 pandemic

The COVID-19 pandemic has disrupted the supply chain activities as several countries' governments have restricted traveling, production activities, and closer of import and export activities. Internet usage and broadband connectivity usage in enterprises have declined, owing to lockdown and travel restrictions globally. The hardware sale of several leading players in the market has been declined amid the COVID-19 pandemic. For instance, Commscope, Inc.’s company’s net sales of the WLAN and Home Network’s segments revenue was declined to 2.13 billion by 7.3% in the fourth quarter of 2020. This factor is primarily attributed to the closure of businesses, production activities, and supply chain disruptions.

Though, the WLAN services and software market slightly increased in the first quarter of 2021 owing to new products developments by the key players. Also, post the COVID-19 pandemic, several leading players have increased their revenue owing to rising demand. For instance, in the second quarter of 2021, New H3C Technologies Co., Ltd.’s global revenues for enterprise WLAN business increased with an annual rate of 16.2%. New H3C Technologies Co., Ltd designs, manufactures, and supplies WLAN products in more than 100 countries globally.

LATEST TRENDS

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Growing Demand for Wireless Broadband and Wi-Fi Connectivity, Support Industry Progress

The demand for Wi-Fi connectivity is rapidly growing from businesses and consumers enterprises around the globe. According to the Wi-Fi Organizations, the global economic value of Wi-Fi connections reached USD 3,244 billion in 2021 and is projected to reach around USD 4,348 billion by 2025. WLAN connects local internet connection via wireless devices such as smartphones, laptops, tablets, and printers using a wireless radio Wi-Fi signal.

Wi-Fi connections using the WLAN devices are cutting-edge technology enabling enterprises to achieve fast internet speed.  Several leading players are developing advanced technologies based on networking products such as RFID, WI-Fi, and others. For instance,

• In November 2021, Arista Networks, Inc. launched ‘Switch App’ for ultra-low latency switch Arista 7130 and its existing solutions. Switch App is based on advanced programmable FPGA technology and integrated with Arista Extensible Operating System (EOS ). Combining these technologies helps customers access financial markets quickly by leveraging flexibility using featured layer switch and low latency tuned solution.


• In March 2021, Allied Telesis Inc., a hardware and software provider, launched ‘TQ6602 Wi-Fi 6 wireless Access Points’. It allows customers to build secure and scalable data exchange solutions. The Allied Telesis Wi-Fi 6 solutions offer faster internet connections for more capacity IoT and mobile devices applications.

ENTERPRISE WLAN MARKET GROWTH FACTORS

Increasing Adoption of Cloud-based Managed Services to Drive Market Growth

The market size is growing by increasing adoption of cloud-based managed services and rising demand for IoT devices around the enterprises. Cloud-managed platforms assist organizations in facilitating higher speed by deploying radio frequency (RF)-based solutions.  Several leading players are developing cloud platforms to manage the internet and Wi-Fi connections around the globe. For instance,

• In September 2021, Coopeguanacaste, R.L., an internet service provider, launched the ‘Zii Wi-Fi program’ with Sutel, the telecommunications regulator. The service was a part of a USD 69 million development program intended to install access points across 515 public places in Costa Rica, the U.S.

The market is further driven by increasing investment in wireless technology and a surge in the sale of smart IoT and connected devices. According to Gartner Inc. Report, the number of connected devices such as sensors and others reached USD 14.2 billion in 2019 and is projected to reach USD 25 billion by 2021. This factor creates a more robust demand for the enterprise WLAN products and solutions for the sectorial that depends on the internet network connections.

RESTRAINING FACTORS

Lack of Standardization in WLAN Technology with Portability and Deployment Issue

The players in the market are struggling to meet the standardizations of Wi-Fi technology-based access point networks. A wireless enterprise LAN deployment does not end unless and until it provides access to the internet connections. The network consists of handling and deploying access points in the required locations. The access points' locations depend on the single device with the specific area network coverage. Also, the lack of standardized instruments by different vendors and the issue related to network trafficking bottlenecks hinder the market growth. The WLAN network’s antenna is installed in open space for gaining access points. The network coverage faces several RF obstacles such as ceilings, walls, and furniture.

Lack of standardization in WLAN technology with portability and deployment issues might hinder the market growth.

SEGMENTATION

By Component Analysis

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Rising Demand for Advanced Wireless Networking Equipment to Aid in Growth of Hardware Segment

Based on the component, the market is divided into hardware, software, and services.  Among these, hardware is expected to hold the largest market share due to the increasing demand for controllers, gateways, routers, and others. WLAN hardware products are used for high-speed internet connectivity in the specified coverage area.

Further, hardware is subdivided into wireless access points, access point antenna, wireless LAN controller, multigigabit switches, wireless location appliances, and others. Several leading players are developing advanced wireless access points hardware products to cater to requests for end-users. For instance,

• In February 2020, LANCOM Systems GmbH, a German-based network infrastructure products provider, launched ‘LX-6400 and LX-6402’ Wi-Fi 6 access points. These products are enabled with advanced wireless LAN technology. LX-640x Series is suitable for applications in schools & universities, offices, hospitals, shopping commercials, and others.

Further, the software is divided into WLAN security, WLAN analytics, WLAN management, and others. Increasing adoption and developments of cloud-based software solutions for better internet connectivity have propelled the market growth for software and services.

By Organization Size Analysis

Rising Number of Small & Medium Size Enterprises, Support Market Growth 

Based on the organization size, the market is divided into small & medium enterprises and large enterprises. Small & medium enterprises are expected to grow at the highest growth rate during the forecast period. This is primarily attributed to the increasing number of start-ups and the surge of emerging digital services providers. For instance, as of 2020, the U.S. has more than 63,703 IT and digital service small and medium scale start-ups.

Also, large enterprises are adopting advanced WLAN solutions for fast internet connectivity. Players in the market are developing customized WLAN solutions to meet the wireless connectivity demand from large enterprises. For instance,

• In October 2021, Qualcomm Technologies, Inc. launched radio frequency-based filter technology ultraBAW that enables both Wi-Fi and 5G solutions to access spectrum up to 7 GHz.

By Industry Analysis

Increasing Investments from IT &Telecommunications and Healthcare, Benefit Market Growth

Based on industry, the market is divided into BFSI, IT & Telecommunication, healthcare, retail, government, hospitality, education, and others. Among these, IT & Telecommunication is expected to hold the largest market share leader during the forecast period. Growing IT and telecommunication spending around the globe with the surge in digitalization is expected to drive market growth. According to Gartner, Inc., global IT spending reached USD 3.75 Trillion and is projected to reach USD 4.1 trillion by 2021 with an annual growth rate of 8.4%.

Healthcare is expected to grow with the highest growth rate, owing to the rising adoption of Wi-Fi technologies in hospitals and healthcare centers. The WLAN provides well-defined healthcare organizations with configured, controlled, monitored, and managed features of hospitals' operations.

REGIONAL INSIGHTS

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The market has been analyzed across five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is expected to capture the largest market share during the forecast period. This is primarily attributed to increasing investment in wireless Wi-Fi technologies with the presence of leading players such as Netgear Inc., Verizon, Fortinet, Inc., and others. For instance,

• In March 2021, AT&T, Inc., an American Telecommunication Company, spent around USD 23 billion on building wireless infrastructure.


• In February 2021, Verizon Telecommunication Company in the U.S. spent around USD 45 billion to acquire Charter Communications.

Such considerable investments in the wireless technology infrastructure have boosted the demand for commercial WLAN.

Asia Pacific is expected to develop with the highest growth rate during the forecast period. This market saw noteworthy growth in all major countries, including China, India, Japan, and others. The market size is driven by the growing adoption of wireless technologies and rising investment by the leading telecom companies. According to the GSMA Intelligence Report in November 2020, Mobile operator companies in the Asia Pacific region plan to invest more than USD 400 billion during the forecast period 2020 to 2025. It requires wireless local area networking WLAN for internet connectivity in this region.

Europe is projected to develop at a substantial growth rate during the forecast period. In Europe, the countries such as Germany, the U.K., Italy, France, and others, are expected to grow at a significant CAGR. In addition, several leading players and governments authorities across the region are investing in adopting Wi-Fi and wireless connectivity in central and Eastern Europe. For instance, the European Commission allocated the budget through the WiFi4EU initiative to promote free Wi-Fi connectivity in public spaces across Europe. The WiFi4EU initiative budget includes the funding of USD 138 million for the period of 2018 to 2020. Such investment and European government initiatives have propelled the enterprise WLAN market growth.

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The Middle East and Africa market is expected to grow steadily during the forecast period. This is primarily owing to a surge in the adoption of broadband and Wi-Fi-based wireless connectivity products. South America is growing at a moderate pace with a surge in adopting strategic collaborations and partnerships by the leading players. For instance,

• In October 2019, Viasat Inc. American Communication Company collaborated with UBIX. Networks to provide high-speed WLAN connectivity in remote locations across Mexico for education institutes. The company’s collaboration aims to provide wireless connectivity for educational institutes and rural schools as part of market expansion.

KEY INDUSTRY PLAYERS:

Product Development & Expansion Strategy Among Key Market Players, Helps Market Growth

Key players in the market, including D-Link Corporation, Dell Technologies, Inc., Huawei Technologies Co., Ltd., Juniper Networks, Inc., Netgear Inc., and others, are focused on offering advanced WLAN solutions. These players are expanding their product portfolio to cater to the increasing demand for enterprise WLAN solutions at an enterprise level. The players in the market are adopting several strategies such as partnerships, acquisitions, and collaboration to grow their businesses around the globe. For instance,

• September 2021 – D-Link Corporation launched advanced outdoor industrial access points 3650AP DIS AC1200 and indoor industrial access point DIS-2650AP. These products are based on advanced technologies to drive business growth through its innovation.  This launch accelerated the company’s access point’s solutions product portfolio to improve operational efficiency in the industry.


• February 2020 – Huawei Technologies Co. Ltd. launched ‘AirEngine Wi-Fi 6’ and Wi-Fi 6 access point (AP) products for accelerating enterprise with WLAN fully wireless technology. These products are deployed to establish wireless technology campuses and accelerate their digital transformation.

List of the Key Companies Profiled in Enterprise WLAN Market:

• Commscope, Inc. (North Carolina, U.S.)


• D-Link Corporation (Taipei, Taiwan)


• Dell Technologies, Inc. (Texas, U.S.)


• Huawei Technologies Co., Ltd. (Shenzhen, China)


• Cisco Systems, Inc. (California, U.S.)


• Juniper Networks, Inc. (California, U.S.)


• LANCOM Systems GmbH (Würselen, Germany)


• Netgear, Inc. (California, U.S.)


• Extreme Networks, Inc. (California, U.S.)


• Fortinet, Inc. (California, U.S.)


• New H3C Technologies Co., Ltd. (Hangzhou, China)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 – EnGenius Technologies Inc., a prominent provider of advanced connectivity solutions, introduced the Cloud Wi-Fi 7 connectivity series targeted at enterprises. The ECW536, the inaugural product in the series, is a cloud-managed Wi-Fi 7 4x4x4 Wireless Access Point powered by the Qualcomm Networking Pro 1220 platform. It is specifically crafted for use in enterprise-level environments.


• October 2021 – Networks, Inc., launched integrated Novant Health, a three-state network of outpatient centers, physician clinics, and hospitals. It is the first enterprise-grade WLAN Wi-Fi solution for customers to deliver high-speed internet connections. The Extreme AP4000 access point (AP) Wi-Fi investment allowed Novant Health to deliver a Wi-Fi-based internet connection throughout its facilities for medical devices and healthcare applications.


• January 2021 – Netgear, Inc., a network equipment company, launched ‘Nighthawk RAXE500 Wi-Fi 6E’, Tri-band router at the CES 2021. It was designed to facilitate the fastest Wi-Fi speed up to 10.8 Gbps. Netgear RAXE500 Wi-Fi launched with two advanced mobile products, including LAX20 4G LTE Nighthawk Wi-Fi 6 router and Netgear LM1200 4G LTE modem.

REPORT COVERAGE

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The enterprise WLAN market research report highlights leading regions worldwide to understand the user better. Furthermore, the report provides market size and vendor insights into the latest industry and market trends and analyses technologies deployed rapidly globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market. The report also includes global market size and vendor share analysis globally.

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