IDC Finds Worldwide Enterprise WLAN Market Growth Accelerated in Q4 and the Full Year 2018

Enterprise WLAN Market Grew 10.3% Year Over Year in Fourth Quarter
of 2018; 7.1% for Full Year 2018

FRAMINGHAM, Mass.–(BUSINESS WIRE)–lt;a href=”” target=”_blank”gt;#80211aclt;/agt;–The combined consumer and enterprise worldwide wireless local area
network (WLAN) market segments increased revenues 8.9% year over year in
the fourth quarter of 2018 (4Q18) and 4.3% for the full year, according
to results published in the International Data Corporation (IDC)
Quarterly WLAN Tracker
. The enterprise segment grew 10.3% year over
year in 4Q18 to reach $1.7 billion and 7.1% for the full year 2018
reaching $6.1 billion. That compares with a year-over-year growth rate
of 9.8% in 3Q18 and full-year growth rates of 5.7% in 2017 and 7.2% in
2016 for the enterprise segment.

In 4Q18 the 802.11ac standard accounted for 86.8% of dependent access
point unit shipments and 93.7% of dependent access point revenues. For
the full year 2018, the 802.11ac standard made up 85.7% of dependent
access point shipments and 94.4% of revenues. Some vendors have already
begun releasing products based on the newest wireless standard,
802.11ax, also known as WiFi 6, with shipments of the product expected
to ramp up throughout 2019 and 2020.

Meanwhile, the consumer WLAN market had mixed results. Revenue rose 6.9%
on a year-over-year basis in 4Q18, finishing at $1.1 billion. But for
the full year, the consumer WLAN market grew only 0.2%. In 4Q18, the
802.11ac standard accounted for 54.3% of shipments and 76.8% of revenue
in the consumer category.

“2018 saw increased growth in the enterprise segment of the WLAN market
compared to 2017, driven by a combination of factors, but none bigger
than organizations continuing to realize the technological and business
benefits that investments in wireless LAN infrastructure can enable,”
said Brandon
, senior research analyst, Network
at IDC. “As the market shifts its focus to 2019, it
will be a year of innovation with a new WiFi standard hitting the market
and enterprises continuing to invest in software-based management
platforms. These trends provide significant opportunities for vendors
around the globe.”

From a geographic perspective, the WLAN market saw strong growth in the
Middle East and Africa region in 4Q18, which increased 20.0% year over
year and 10.9% for the full year compared to 2017. The United Arab
Emirates was a standout in the region, growing 25.5% year over year in
4Q18. The Asia/Pacific (excluding Japan) (APeJ) region increased 7.3%
year over year in 4Q18 and was up 7.6% for the full year. Standouts in
the region included the People’s Republic of China, which rose 6.1% year
over year and 9.9% for the full year, and India, which was up 53.9% year
over year in 4Q18, powering the country to a 37.1% increase in 2018
compared to the prior year. Japan rose 18.2% year over year in the
quarter and 26.0% for the year.

The Central & Eastern European region grew 19.7% year over year in 4Q18
and was up 15.8% for the full year. Russia, the region’s largest market,
rose 12.1% year over year while Poland was up 32.6%. The Western
European region grew 12.4% year over year in 4Q18 and 5.6% for the full
year. Spain increased 20.6% year over year in 4Q18 while the United
Kingdom declined 8.8%. The Latin America region was down 4.8% year over
year in the quarter, but grew 3.1% for the full year compared to 2017.
The United States, which accounted for 36.3% of worldwide revenues in
2018, had mixed results. Sequentially, U.S. revenues were down 7.5% in
4Q18 compared to 3Q18 but rose 9.9% compared to 4Q17. Overall, the U.S.
enterprise WLAN market grew 4.8% in 2018.

“The enterprise WLAN market finished 2018 strong with 10% year-over-year
growth in the fourth quarter compared to the same time period last
year,” noted Petr
, research manager, Worldwide
Networking Trackers
. “After a somewhat sluggish start to 2018, the
second half of the year saw solid growth rates, which in turn
contributed to overall growth in the market in 2018. While results were
mixed around the world, both mature and emerging countries continue to
invest in WLAN infrastructure.”

Key Enterprise WLAN Vendor Updates:

  • Cisco saw its worldwide enterprise WLAN revenues decline 2.3%
    sequentially from the third to fourth quarters of 2018, but they were
    positive on a year-over-year basis, up 13.5% to $734.0 million. For
    the full year, its revenues were up 9.8% in 2018 to $2.73 billion. The
    company remains the comfortable market share leader, finishing the
    year with 44.7% share, compared to 43.6% share in 2017.
  • HPE-Aruba revenues rose 3.4% sequentially and 20.8% year over
    year in the fourth quarter to $233.3 million. For the full year,
    revenues were flat, down 0.1% to $851.5 million, giving the company
    13.9% market share.
  • ARRIS/Ruckus saw its revenues decline 13.2% quarter over
    quarter in 4Q18 and increase 1.0% on a year-over-year basis. For the
    full year, its revenues were up 19.0% giving the company 6.5% market
    share. During the fourth quarter of 2018 a preliminary deal for
    CommScope to purchase ARRIS, and in turn Ruckus, was announced, but it
    has not yet been finalized.
  • Ubiquiti rose 7.9% sequentially and 33.2% year over year in
    4Q18 to $113.4 million. For the full year, revenues rose 22.9% to
    $391.4 million, representing 6.4% market share.
  • Huawei had a strong quarter with revenues in the fourth quarter
    of 2018 rising 34.1% from the third quarter and up 9.1% from the same
    quarter a year earlier. For the full year, its revenues rose 11.1% to
    $314.2 million, giving the company 5.1% market share to end 2018.

A graphic illustrating worldwide enterprise revenue for the top 5 WLAN
companies over the previous five quarters is available by viewing this
press release on

The IDC Worldwide
Quarterly WLAN Tracker
provides total market size and vendors share
data in an easy-to-use Excel Pivot Table format. The geographic coverage
includes eight major regions (USA, Canada, Latin America, AP excluding
Japan, Japan, Western Europe, Central and Eastern Europe, Middle East
and Africa) and 58 countries. The WLAN market is further segmented by
product class, product type, product, standard, and location.
Measurement for the WLAN market is provided in factory revenue, customer
revenue, and unit shipments.

About IDC Trackers
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.

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 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
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Brandon Butler

Petr Jirovsky

Michael Shirer

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