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November 02, 2010

802.11n Products Key drivers of Wi-Fi Equipment Market Growth

By Mini Swamy, TMCnet Contributor

ABI Research, which provides in-depth analysis and quantitative forecasting of emerging trends in global connectivity and other emerging technologies, has predicted  an increase in worldwide Wi-Fi access point shipments, and expects it to exceed 18 million in the second quarter 2010.

There has been a strong demand for Wi-Fi equipment as wireless network infrastructure adoptions are increasing rapidly around the world. The consumer and enterprise market segments have witnessed increase in shipment volumes of wireless routers, access points and gateways, and shipments in the second quarter of 2010 grew six percent compared to the first quarter.

Research director Philip Solis said, “In both consumer and enterprise sectors, demand for 802.11n product is growing rapidly. In the second quarter, 802.11n products were the key drivers of Wi-Fi equipment market growth.”

A total of 5.9 million of 802.11n devices were shipped in the second quarter. This represents a 15percent increase over the first quarter. Due to increased interest in upgrading from 802.11a/g to 802.11n technology, the deployment of 802.11n products is expected to accelerate even further in coming years. While D-Link leads in this market with a 19 percent share, Netgear and Linksys (News - Alert) are not far behind at second and third respectively in the SOHO consumer markets. In the enterprise segment, Cisco dominates with 54 percent market share and Aruba Networks (News - Alert), the second largest player, trailing behind with 13 percent market share.

Although the average selling prices of Wi-Fi access points declined marginally, revenues increased by over 5five percent in the second quarter. Research associate Khin Sandi Lynn predicted a further decline in the average selling price as competition between manufacturers increased.

ABI Research’s (News - Alert) Wi-Fi Equipment market data is updated every quarter and profiles shipments and revenue trends in both the enterprise and consumer market.

Mini Swamy is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Juliana Kenny

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