SOHO/Consumer WLAN Vendors Struggle

Global

In-Stat: While SOHO/home WLAN equipment shipment volumes have increased strongly since Apple first launched its AirPort line of 802.11b-compliant consumer WLAN gear in 2000, prices have eroded sharply over the past several years, and few vendors are making much money in this market segment at present. The SOHO/consumer AP market will rise from approximately 17.6 million units in 2004 to roughly 32.6 million units in 2009. A major story in this market is a key transition from the 802.11g air standard to MIMO-based products. There will be a gradually shrinking price premium for MIMO/802.11n throughout the forecast period. The benefits of dramatically increased range appear to be resonating with consumers, actually more so than the increased throughput offered, and we believe customers are willing to pay the extra amount for whole-home coverage. Eventually, while 802.11g will remain throughout the forecast period in very cost-optimized equipment, MIMO/802.11n will become the primary air standard; having a "universal" air standard is less confusing for consumers and easier to manage for vendors. Shipment volumes for MIMO-based equipment were small in 2004, but at least five vendors have now introduced products, with more expected in 2005. In contrast to the enterprise WLAN market, 802.11a/g equipment is not expected to gain traction in the SOHO/consumer WLAN market. Here Comes MIMO: SOHO/consumer WLAN Market Analysis Publ 20050518 wlan?