Worldwide WLAN Market Shows Sustained Growth in Third Quarter of 2014, According to IDC

Enterprise WLAN Market Grew 9.6% Year over Year in Third Quarter of 2014

FRAMINGHAM, Mass.--()--The combined consumer and enterprise worldwide wireless local area network (WLAN) market segments increased 7.4% year over year in the third quarter of 2014 (3Q14). According to the preliminary results published in the International Data Corporation (IDC) Worldwide Quarterly WLAN Tracker, the enterprise segment continued to grow at a steady rate and increased another 9.6% over the same period last year. While the pace of the enterprise WLAN market growth had been steadily decreasing over the last several quarters, 3Q14 represented a moderate increase in the growth rate compared to the 7.7% seen in 2Q14.

The 802.11ac standard continues to see rapid adoption in the enterprise segment. After five full quarters of product availability, the 802.11ac standard already accounts for 26.5% of dependent access point shipments and 39% of revenues, representing a noticeably faster adoption rate than what we saw with the transition to 802.11n several years ago. The primary reasons behind this trend include a faster ratification process, aggressive pricing for 802.11ac access points with minimal or no price premium over 802.11n, and the inherent benefits of 802.11ac in high density environments that are dependent upon enterprise mobility, cloud connectivity, and multimedia applications.

The consumer WLAN market increased 4.8% year over year in 3Q14. This was noticeably lower than the 10.9% year-over-year growth seen in 2Q14. The ongoing transition from the older 802.11n standard to the newer and faster 802.11ac standard continues to drive growth across all geographies.

"WLAN is proving to be an increasingly mission-critical platform in the enterprise," said Rohit Mehra, Vice President, Network Infrastructure, at IDC. "Not only are organizations experiencing transformed internal business processes through WLAN-enabled cloud and multimedia applications, but public-facing enterprises are realizing opportunities to improve customer engagement through the wireless network. This is leading to a robust stream of network upgrades and greenfield deployments, increasingly built upon the 802.11ac standard. These trends will continue to play out in the foreseeable future."

From a geographic perspective, the enterprise WLAN market once again performed especially well in Latin America with its 27.3% year-over-year growth in 3Q14. The Europe, Middle East, and Africa (EMEA) region also enjoyed its second consecutive quarter of solid growth, growing 15.0% year over year. North America, rebounding from a decline in 2Q14, grew 7.5% year over year in 3Q14. The enterprise WLAN market in the Asia/Pacific region grew more modestly at 4.5% year over year.

"Although 3Q14 was a fairly strong quarter for growth in the worldwide enterprise WLAN market, growth stories diverged across geographies and vendors. As demand for 802.11ac continues to rise, and as innovation drives network upgrades, expect to see continued overall market growth with some variations among vendors and geographies," said Petr Jirovsk√Ĺ, Research Manager, Worldwide Networking Trackers.

Key Enterprise WLAN Vendor Updates

  • Cisco's 3Q14 worldwide enterprise WLAN revenue increased 2.6% year over year and 7.3% quarter over quarter. Cisco's worldwide market share increased to 48.3% in 3Q14 from 46.8% in 2Q14, stemming two consecutive quarters of declining market share, but still down from the 51.6% market share held in 3Q13.
  • Aruba (excluding its OEM business) had a very strong quarter in 3Q14 and increased 33.4% year over year and 1.4% sequentially on strength across its product portfolio, including the 802.11ac and Aruba Instant access points. As a result, Aruba's market share increased to 11.5% of the enterprise WLAN market, up from the 9.4% in 3Q13.
  • Ruckus again outperformed the overall enterprise WLAN market after growing 22.6% year over year and 4.5% quarter over quarter in 3Q14. Ruckus now accounts for 6.3% of the overall market, up from 5.6% in 3Q13.

An interactive graphic showing the relative market shares of the top 5 vendors in the worldwide enterprise WLAN market for 3Q14 is available at here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

The IDC Worldwide Quarterly WLAN Tracker provides total market size and vendors share data in an easy-to-use Excel Pivot Table format. The geographic coverage includes 8 major regions (USA, Canada, Latin America, AP excluding Japan, Japan, Western Europe, Central and Eastern Europe, Middle East and Africa) and 58 countries. The WLAN market is further segmented by product class, product type, product, standard, and location. Measurement for the WLAN market is provided in factory revenue, customer revenue, and unit shipments.

For more information about IDC's Worldwide Quarterly WLAN Tracker, please contact Kathy Nagamine (knagamine@idc.com).

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. Follow IDC on Twitter at @IDC.

All product and company names may be trademarks or registered trademarks of their respective holders.

Contacts

IDC
Rohit Mehra, 508-935-4343
rmehra@idc.com

Petr Jirovsky, 413-313-6112
pjirovsky@idc.com

Michael Shirer, 508-935-4200
press@idc.com

Release Summary

The worldwide wireless local area network (WLAN) market grew 7.4% year over year in the third quarter of 2014 (3Q14), according to the IDC Worldwide Quarterly WLAN Tracker.

Contacts

IDC
Rohit Mehra, 508-935-4343
rmehra@idc.com

Petr Jirovsky, 413-313-6112
pjirovsky@idc.com

Michael Shirer, 508-935-4200
press@idc.com