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Wireless LAN Backlogs Pile up to 10X Normal Levels, According to Dell'Oro GroupManufacturers Remain Limited by Supply, Leaving Enterprises Scrambling to Find Creative Wi-Fi Solutions REDWOOD CITY, Calif., Aug. 10, 2022 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, the overall market is expected to exceed $10 billion by 2026, and see a healthy CAGR over the next five years. Enterprise Wireless LAN backlogs will balloon to over 100 percent of revenues in 2022, leaving companies to get inventive in their search for Wi-Fi coverage. A boost in unit shipments is not expected until late 2023, with a return to normal unit growth still two years away. "Wireless LAN market sales are being dragged down by manufacturers' record-breaking backlogs," said Siân Morgan, Wireless LAN Research Director at Dell'Oro Group. "Our recent interviews have revealed that the lead time for receiving Wireless LAN Access Points has stretched to between six months and a year – a significant change from the 'weeks-to-months' that enterprises were waiting at the end of 2021. Supply constraints have shifted, including not just the main Wi-Fi chips but also secondary or even tertiary components. With a limited ability to fulfill the orders flooding in, manufacturers will focus their late 2022 and early 2023 shipments on working down outstanding backlogs: mainly orders for Wi-Fi 6. Unit shipments should start to loosen up later in 2023, about the time Wi-Fi 7 appears on the market. "Enterprises are going to creative lengths to procure Wi-Fi solutions, such as rolonging existing support contracts, using older equipment or even repurposing consumer-grade routers. Systems integrators are recommending ways to enable more applications, squeezing more value from the existing network infrastructure. In sum, now is a time characterized by invention," added Morgan. Additional highlights from the Wireless LAN July 2022 5-Year Forecast Report:
The Dell'Oro Group Wireless LAN 5-Year Forecast Report offers complete, in-depth coverage of the Enterprise Outdoor and Indoor markets, Wireless LAN Controllers with tables containing manufacturers' revenue, average selling prices, and unit shipments by the following wireless standards: 802.11be (Wi-Fi 7), 802.11ax (Wi-Fi 6 and 6E [6 GHz]), 802.11ac (Wi-Fi 5) Wave 1 vs. Wave 2, and historic IEEE 802.11 standards. The Enterprise market is forecast by Public Cloud vs. Private Cloud and Premises Managed, as well as by macro region of the world. To purchase this report, please contact us by email at [email protected]. Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com. View original content to download multimedia:https://www.prnewswire.com/news-releases/wireless-lan-backlogs-pile-up-to-10x-normal-levels--according-to-delloro-group-301602964.html SOURCE Dell'Oro Group |