The Latest WLAN Forecasts: More Growth
August 22, 2003
The latest revenue reports on the wireless LAN market are in, and one indicates a $1.6 billion market expected for this year, which will grow 100% by 2006.
Reports are in on the actual marketplace and revenue numbers for the second quarter of 2003.
Synergy Research Group of Phoenix, Ariz., says that the second quarter total sales for wireless LAN (WLAN) equipment hit $563.5 million, up 33% from the same time last year.
Similar numbers were indicated by Infonetics Research of San Jose, Calif. They say worldwide WLAN revenue topped $608 million in the second quarter. They expect for the same quarter next year, revenue will be $661 million.That doesn't seem like much, but the annual growth will be telling: Infonetics expects 2003's total revenue to hit $1.6 billion, which they believe will double to $3.2 billion by calendar year 2006. The research firm said solid growth will continue in all enterprise markets, and that vendors of equipment are going to continue to differentiate between enterprise products and carrier-class products for hotspots.
The two research firms continue to single out Cisco and Linksys (which is now a division of Cisco, though it supplies numbers to the research firm separately) as market leaders during the second quarter. Infonetics pegs Linksys as having 27% of the market share, Synergy says 22.8%, but both numbers are well ahead of their nearest rivals in the consumer space -- Buffalo Technology, D-Link, and Netgear.
Consumers, says Infonetics, make up 45% of all the revenue earned in WLAN equipment sales.
North America also continues to buy the most WLAN products. Infonetics says the continent provided 56% of the revenue in Q2. Synergy breaks it out in to percentages for Enteprise (67%) and SOHO/Home (55%).