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Enterprise Wireless LAN Revenues Grew 7.6% in 2023, But Declined Sharply in the Fourth Quarter, According to the IDC Worldwide WLAN TrackerThe enterprise segment of the worldwide wireless local area network (WLAN) market saw revenues grow 7.6% year over year in 2023 to $10.8 billion, according to the International Data Corporation (IDC) Worldwide Quarterly Wireless LAN Tracker. However, in the fourth quarter of 2023 (4Q23) the enterprise market declined 25.5% year over year as customers implemented a record amount of product inventory. 2023 was a year of two halves in the enterprise WLAN market: In the first half of the year (1H23), enterprise WLAN revenues rose 43.3% compared to the first half of 2022, driven by vendors shipping backlogged products. In the second half of the year, revenues declined 16.6% compared to the same period a year earlier. New product orders slowed in the second half as customers implemented heightened product inventory. Meanwhile, adoption of Wi-Fi 6E, which expands Wi-Fi's use to include the 6 GHz band of spectrum, continued to grow in 4Q23. Within the enterprise dependent access point (AP) segment, Wi-Fi 6E revenues grew 11.7% between the third and fourth quarters of 2023 to make up 22.6% of dependent AP quarterly revenues and 10.0% of unit shipments. Wi-Fi 6 made up most of the remaining dependent AP revenues (72.8%) and unit shipments (77.5%), with the legacy Wi-Fi 5 standard making up the balance. The consumer segment of the WLAN market declined 12.8% year over year for the full year in 2023 and declined 14.5% in 4Q23. By standard, Wi-Fi 6 made up 64.1% of the consumer market's revenues, while Wi-Fi 5 made up just over a quarter (26.5%) of revenues. Wi-Fi 6E adoption remains nascent in the consumer segment, making up just 6.7% of revenues in 4Q23. "2023 was a dynamic year in the enterprise WLAN market, driven by myriad factors including the effects of the supply chain disruptions, product backlogs, and the shipping of product inventory, combined with a fragile macroeconomic environment," said Brandon Butler, research manager, Enterprise Networks. "Nonetheless, WLAN remains a critically important technology for organizations across the globe as they build out a future connectedness strategy." The enterprise WLAN market had mixed results across the globe. In the United States, the market increased 20.6% year over year for 2023, but declined 25.9% in 4Q23. In Cnada the market rose 14.5% for the full year but fell 32.3% in the fourth quarter. In the People's Republic of China, the market declined 17.5% for the full year and was off 18.0% in 4Q23. In the broader Asia/Pacific region (excluding Japan & China), the market declined 16.9% in the quarter, but rose 6.2% for the full year. In Europe, the Middle East & Africa (EMEA), the market was off 32.1% in the quarter, but rose 1.6% for the full year. In Latin America, the market was off 15.1% in 4Q23, but rose 25.1% for the full year. Company Highlights
A graphic illustrating the worldwide market share of the top 5 enterprise WLAN companies over the previous five quarters is available by viewing this press release on IDC.com. The IDC Worldwide Quarterly WLAN Tracker provides total market size and vendor share data in an easy-to-use Excel pivot table format. The geographic coverage includes nine major regions (USA, Canada, Latin America, People's Republic of China, Asia/Pacific (excluding Japan & China), Japan, Western Europe, Central and Eastern Europe, and Middle East and Africa) and 60 countries. The WLAN market is further segmented by product class, product type, product, standard, and location. Measurement for the WLAN market is provided in vendor revenue, value, and unit shipments. 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. Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business. 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. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, 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 tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights. All product and company names may be trademarks or registered trademarks of their respective holders.
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