The enterprise WLAN market increased 3.2 percent in the fourth quarter compared to the same period in 2023, reaching $2.6 billion. However, full-year revenues of enterprise WLAN market declined by 12.7 percent, totaling $9.4 billion.
Despite this annual decline, sequential growth trends in enterprise WLAN market indicate stabilization, with a 4.8 percent increase from the third to the fourth quarter and a 5.8 percent rise from the second to the third quarter. These patterns suggest the market is normalizing after disruptions caused by pandemic-era supply chain challenges and backlog fulfillment.
Advancements in Wi-Fi technology are playing a crucial role in market expansion. Wi-Fi 6E adoption grew significantly, making up 29.0 percent of the dependent access point segment in 4Q24, up from 22.5 percent a year prior.
Wi-Fi 7 also gained traction, accounting for 10.2 percent of the segment’s revenues in the fourth quarter, more than doubling from 4.9 percent in 3Q24. The growing implementation of these newer standards, along with AI-driven management solutions, is enhancing the performance and efficiency of WLAN deployments.
Geographically, the enterprise WLAN market showed varied performance. The Americas saw a 6.1 percent growth in 4Q24 but experienced a 16.7 percent decline for the full year. In the U.S., a strong fourth quarter with 7.1 percent growth could not counterbalance earlier losses, resulting in a 17.3 percent annual decline.
Europe, the Middle East, and Africa followed a similar trajectory, with an 8.2 percent increase in 4Q24 but a 9.3 percent decline over the year.
The Asia Pacific region faced a 6.9 percent decline in fourth-quarter revenues and an 8.8 percent drop for the full year. China was hit particularly hard, with a 20.1 percent contraction in 4Q24 and a 14.2 percent decline for the year.
While the overall revenue contraction in 2024 may seem like a setback, industry experts attribute it to the temporary effects of supply chain corrections rather than an underlying market weakness.
The resurgence in the latter half of the year, driven by Wi-Fi 6E and Wi-Fi 7 adoption, as well as AI-enhanced WLAN management capabilities, points to a strong foundation for future growth, Brandon Butler, senior research manager, Enterprise Networks, IDC said in a recent report.
The enterprise WLAN vendor landscape in 2024 saw a mix of growth and contraction among key players, reflecting shifting market dynamics.
Leading WLAN vendors
Cisco maintained its dominant position with a 39.5 percent market share, despite a 19.1 percent decline in full-year revenues, which totaled $3.7 billion. The company showed a modest 2.8 percent growth in 4Q24, indicating some recovery toward the year’s end.
HPE Aruba Networking secured 15.2 percent of the enterprise WLAN market, with annual revenues of $1.4 billion. Although its full-year revenues fell by 8.3 percent, the company posted an impressive 17.9 percent growth in the fourth quarter.
Huawei faced challenges, experiencing a 6.2 percent decline in fourth-quarter revenues and a 1.6 percent dip for the full year. The company ended 2024 with $851 million in revenue, translating to a 9.0 percent market share.
Ubiquiti, on the other hand, demonstrated strong momentum, posting a 39.3 percent increase in 4Q24 and a 20.5 percent rise for the full year. With $800 million in revenue, Ubiquiti captured an 8.5 percent market share, reflecting its continued expansion in the WLAN segment.
Juniper Networks also performed well, with a 13.6 percent increase in fourth-quarter revenues and a 9.6 percent gain for the full year. The company finished 2024 with $484 million in revenue and a 5.1 percent market share.
While some enterprise WLAN vendors struggled with supply chain adjustments and backlog fulfillment issues, others capitalized on growing demand for next-generation Wi-Fi solutions. The enterprise WLAN market remains competitive, with vendors that have embraced Wi-Fi 6E, Wi-Fi 7, and AI-driven networking solutions positioning themselves for future success.
Baburajan Kizhakedath
