Enterprise mobility drives wireless LAN equipment market up 8%

Infonetics: worldwide wireless LAN equipment revenue rose 8% in 1Q06 to $639 million, driven by strong sales in the enterprise segment.

Sales of enterprise wireless LAN equipment revenue topped $282 million in 1Q06, up 11% from 4Q05, largely due to growth in WLAN switches and controllers. Enterprise WLAN revenue is forecast to more than double by 2009, reaching $2.4 billion, as most verticals adopt enterprise-class WLAN equipment and leverage mobility for data networking and IP voice.

Enterprises are moving from patchy, organic wireless LANs to campus-wide rollouts of ubiquitous wireless LAN, based on single-supplier homogenous platforms. Mobility is now a key part of enterprise networking strategy, which is driving wireless LAN switch and controller sales in particular, leading to double-digit annual growth through 2009.

Market Highlights

• worldwide WLAN equipment revenue is forecast to grow to $3.8 billion in 2009, with growth continuing in all regions

• Sequentially, quarterly revenue for residential WLAN equipment is up 9% while service provider revenue is down 9%

• The WLAN switch and controller market jumped 42% in units and 24% in revenue, accounting for 20% of all WLAN equipment revenue in 1Q06, and growing to 45% of the total in 2009

• Cisco remains the clear leader in the fast-growing enterprise WLAN equipment segment, followed by Symbol, Aruba, 3Com, and Trapeze

• North America accounts for 47% of worldwide revenue in 1Q06, EMEA for 29%, Asia Pacific 20%, and CALA 3%

Infonetics’ WLAN report tracks residential, enterprise, and service provider WLAN equipment, including access points (standalone, wireless broadband routers, outdoor bridges), WLAN switches and controllers, and NICs. Wireless LAN Equipment

Publ 20060601