Juniper Networks and Huawei Dodge WLAN Market Contraction
REDWOOD CITY, Calif. – March 6th, 2024 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, 2023 was a roller coaster ride for Wireless LAN (WLAN) vendors. Revenues were elevated in the first half of the year but contracted sharply in 4Q 2023. Despite the end-of-year correction, annual WLAN revenues hit a record $10 B.
“In 4Q 2023, enterprises and distributors were awash with WLAN inventory, contributing to a digestion period–a pause in purchasing while the equipment shipped in the past few quarters is deployed,” said Siân Morgan, Research Director at Dell’Oro Group. “All macro regions across the world saw a contraction in WLAN sales.
“We are anticipating that this downturn will continue into 2024. Vendors that generate recurring revenues from existing customers, as opposed to relying solely on sales of new shipments, are expected to fare better during the downturn. Juniper Networks was an outlier in the WLAN market in 4Q, managing to grow Y/Y and Q/Q despite the difficult market conditions. In addition, Huawei had Y/Y growth in WLAN sales across several macro regions of the world,” continued Morgan.
Additional highlights from the 4Q 2023 Wireless LAN Quarterly Report:
- Average prices fell Y/Y for the first time in over two years–with the notable exception of Controller and License prices, which experienced considerable growth.
- The percentage of 4Q 2023 revenues from the sale of Indoor Wi-Fi 6E APs was flat compared to 3Q 2023. Wi-Fi 7 was the only technology generation that grew on a Q/Q revenue basis.
- All regions experienced a Y/Y reduction in WLAN revenues, with sales to China contracting the least of all the macro regions.
- Revenues from Public Cloud-Managed WLAN contracted Y/Y for a second quarter in a row.
The Dell’Oro Group Wireless LAN Quarterly Report offers complete, in-depth coverage of the Enterprise Outdoor and Indoor markets, Wireless LAN Controllers and Licenses, 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, 802.11n, and historic IEEE 802.11 standards. The Enterprise market is portrayed by Public Cloud vs. Premises and Private Cloud deployments, by geographic region, as well as by ten Vertical markets. To purchase these reports, please contact us by email at dgsales@delloro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, security, enterprise networks, and data center infrastructure 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.
# # #
