Growth rates remained strong in the enterprise segment of the wireless local area network (WLAN) market in the second quarter of 2021 (2Q21), with the market increasing 22.4% year-on-year to $ 1.7 billion , according to IDC.
In the consumer segment of the WLAN market, revenue declined 5.7% in the quarter to $ 2.3 billion, giving the combined enterprise and consumer WLAN markets a 4.6% year-on-year growth annual in 2Q21.
Growth in the enterprise-class segment of the market builds on a strong first quarter of 2021, when revenue grew 24.6% year-over-year. For the first half of 2021, the market grew 23.5% compared to the first two quarters of 2020. Compared to the second quarter of 2019, 2Q21 revenue increased 10.8%, indicating that demand in the Corporate WLAN is strong.
Growth of the enterprise WLAN market in 2Q21 driven by Wi-Fi 6
The growth of the enterprise WLAN market continues to be driven by the latest Wi-Fi standard, known as Wi-Fi 6 or 802.11ax. Wi-Fi 6 access points represent 56.7% of dependent access point (AP) segment revenue and 45.0% of segment unit deliveries. Wi-Fi 5 products, also known as 802.11ac, accounted for the remaining dependent access point sales balance.
Meanwhile, the consumer WLAN market was down 5.7% year-on-year. During the COVID-19 pandemic, the consumer WLAN market experienced robust growth as consumers improved their home wireless connectivity. Compared to the second quarter of 2019, the market rose 10.1%, indicating that market fundamentals remain strong.
Wi-Fi 6 products continued to grow in the consumer market, reaching 24.5% of total consumer segment revenue, up from 20.3% in 1Q21. Wi-Fi 5 hotspots still make up the majority of revenue (64.1%) and unit shipments (64.0%).
“The enterprise WLAN market experienced strong growth in the second quarter of 2021. At the macro level, economies around the world continue to reopen as vaccines are deployed, forcing organizations to consider their needs in when it comes to business connectivity, ”says Brandon’s Butler, Research Director, Network Infrastructure at IDC.
“Wireless LAN remains one of the most important technologies for businesses to provide seamless connectivity, with enterprise-grade security, management and assurance. “
Market by location
Geographically, the enterprise WLAN market has grown in all regions of the world. Growth was particularly strong in Asia: the People’s Republic of China market grew 57.9% year-on-year, while the Japanese market grew 21.9%.
Across the Asia / Pacific region except Japan and China, growth was 11.1% year-on-year, with Australia registering an annual increase of 19.6%. Growth was also strong in the Americas where the US market grew 14.3%, the Canadian market grew 18.0% and the Latin America region grew 19.1%.
In Western Europe, the market grew 21.0% year-on-year with the strength of Germany, which grew 26.0%. Central and Eastern Europe grew 18.7%, while the Middle East and Africa region grew 18.6% year-on-year.
“Growth in the second quarter of 2021 was widespread in all regions of the world,” noted Petr Zhirovsky, Research Director, Worldwide Networking Trackers.
“While year-over-year comparisons in the second quarter of 2021 coincide with the height of the COVID-19[female[feminine pandemic in 2020, sequential growth for many vendors and growth in 2Q21 from the second quarter of 2019 indicate positive underlying trends for the future growth of the enterprise WLAN market.