|[March 07, 2017]
Worldwide Enterprise WLAN Market Sees Weaker Quarterly Growth in 4Q16; Full-Year Growth Improves, According to IDC
The combined consumer and enterprise worldwide wireless local area
network (WLAN) market segments decreased 0.1% year over year in the
fourth quarter of 2016 (4Q16), and increased 3.1% for the full year to
finish at $2.43 billion. According to the results published in the
International Data Corporation (IDC)
Quarterly WLAN Tracker, the enterprise segment grew 3.1% year over
year in 4Q16 to reach $1.41 billion, and 7.2% for the full year 2016
reaching $5.4 billion. While growth slowed in 4Q16, a strong demand for
network refreshes worldwide coupled with digital transformation
initiatives carried the market to stronger growth than the 4.2% seen in
The 802.11ac standard now accounts for 65.6% of dependent access point
unit shipments and 80.9% of dependent access point revenues. For the
full year 2016, the 802.11ac standard accounted for 63.4% of dependent
AP shipments and 78.9% of revenues. This indicates that the 802.11n
standard will be nearly obsolete by 2018 in the mainstream enterprise
Meanwhile, consumer WLAN market revenue decreased 4.1% on a
year-over-year basis in 4Q16, finishing at $1.02 billion. For the full
year, the consumer WLAN market came in at $3.98 billion, representing a
decrease of 2.1% over 2015. In 4Q16, the 802.11ac standard accounted for
just 27.6% of shipments and 56.6% of revenue in the consumer category.
The slower adoption of 802.11ac in the consumer segment, along with
802.11n price erosion is a contributing factor to the declining revenues
in consumer-grade WLAN.
"While growth in 4Q16 is lower compared to previous quarters, IDC (News - Alert)
believes this market softness will be temporary," said Nolan
Greene, senior research analyst, Network
Infrastructure at IDC. "Digital transformation efforts are
continuing to take hold around the world and the market landscape is
evolving so that vendors compete more nimbly to address the needs of
emerging segments and use cases such as the Internet of Things."
From a geographic perspective, the enterprise WLAN market saw its
strongest 4Q16 growth coming from Asia/Pacific (excluding Japan) (APeJ),
which increased 22.7% year over year in 4Q16 and 21.7% for the full year
2016. The bulk of the growth in 4Q16 accrued to China (up 41.1% on an
annualized basis). Japan experienced a second consecutive quarter of
growth (up 20.2% in 4Q16), ending 2016 with a 3.4% increase over 2015.
The Middle East and Africa (MEA) increased 5.9% on an annualized basis
in 4Q16 and 4.1% for the full year. Egypt led growth in MEA in 4Q16,
increasing 94.9% year over year. Western Europe grew 2.1% in 4Q16 and
5.9% for the full year, with Norway up a significant 30.8% year over
Central and Eastern Europe (CEE) experienced a moderate 3.1% annualized
decline in 4Q16, while increasing 0.9% on a full-year basis in 2016. In
4Q16, Hungary experienced the strongest growth within the region,
increasing 40.6% on a year-over-year basis. North America declined 4.3%
in 4Q16, largely on a 4.9% decrease in the United States during the
period, but increased 4.4% for the full year. Latin America contracted
16.0% in 4Q16, contributing to a full-year decline of 7.5% in 2016.
Chile was the sole country experiencing growth in the region in 4Q16,
increasing 9.4% year over year.
"The Asia/Pacific and Japan regions continue to be growth pacesetters as
those regions embark upon their network transformation initiatives
across various use cases and verticals," said Petr
Jirovsky, research manager, Worldwide
Networking Trackers. "2017 should see some shifts in enterprise WLAN
growth across the world as regions become more digitally mature."
Key Enterprise WLAN Vendor Updates:
Cisco (News - Alert)'s 4Q16 worldwide enterprise WLAN revenue decreased 0.2%
year over year in 4Q16. Cisco's worldwide market share came in at
43.6% in 4Q16, down from 43.7% in 3Q16, and 45.0% in 4Q15. IDC
believes that the Meraki cloud-managed WLAN portfolio remains one of
the primary growth drivers for Cisco, offsetting declines in its
traditional controller-based WLAN portfolio. For the full year 2016,
Cisco increased 0.9% over 2015, finishing with 44.0% market share
compared to 46.7% for 2015.
Aruba-HPE (excluding its OEM business and excluding H3C as of
2Q16) decreased 8.1% sequentially. Aruba-HPE's market share stands at
13.5% in 4Q16, down from 14.3% in 3Q16. For the full year 2016,
Aruba-HPE's market share stands at 14.5%.
Huawei (News - Alert) once again experienced very strong growth in 4Q16,
increasing 55.3% over 4Q15, while claiming 6.2% market share, up from
4.1% in 4Q15. For the full year 2016, Huawei increased 77.2% over 2015
and recorded a market share of 3.6%.
Ubiquiti (News - Alert) also recorded strong consecutive growth in 4Q16,
increasing 97.2% year over year. Ubiquiti accounted for 5.2% of the
overall market in 4Q16, up from 2.7% in 4Q15. For the full year 2016,
Ubiquiti grew 86.0% over 2015 and recorded a market share of 4.5%.
Brocade-Ruckus declined 20.9% year over year in 4Q16.
Brocade-Ruckus accounted for 5.1% of the overall market in 4Q16, down
from 6.7% in both 3Q16 and 4Q15. For the full year 2016,
Brocade-Ruckus grew 2.6% and recorded a market share of 6.5%.
An interactive graphic showing the relative market shares of the top 5
vendors in the worldwide enterprise WLAN market for 4Q16 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 (firstname.lastname@example.org).
About IDC Trackers
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.
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. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company. To learn
more about IDC, please visit www.idc.com.
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