Enterprise Class Wireless LAN - The Market Will Shift In 2024
Dell'Oro Group, Friday, January 12th, 2024
Early last year, we predicted that the enterprise class WLAN revenues would surpass $10 B in 2023 and that sales would be weighted to the first half of the year, defying the usual seasonal patterns.
Although 4Q23 results have not yet been published, the first three quarters of the year indicate that 2023 is unfolding as we anticipated.
In the first half of 2023, manufacturers shipped more Access Points (AP) than any first half in history. In the aftermath of the pandemic, a lack of components had created pent-up demand, just as businesses wanted to adapt their networks to accommodate hybrid work models. With equipment in short supply, prices rose and were locked into orders awaiting fulfillment. Once the shortages were alleviated, unit shipments flooded into the channels and manufacturers recognized record revenues.