Continued recovery for enterprise WLAN revenues in 3Q 2024

According to a recently published report from Dell’Oro Group, enterprise class Wireless LAN (WLAN) revenues increased Q/Q for the second time in a row, reaching $2.3 B in 3Q 2024. The adoption of Wi-Fi 7 continued its ascent, with shipments of the latest technology growing 69 percent over 2Q 2024.

“In 3Q 2024, the worldwide WLAN market performed better than it has in a year,” said Siân Morgan, Research Director at Dell’Oro Group. “This recovery has been gradual – and we are predicting that WLAN revenues will see significant Y/Y growth in 4Q 2024.

“Software license revenues expanded double digits Y/Y and much of this growth is from vendors who have transitioned to a recurring model for software fees,” continued Morgan. “The adoption of Wi-Fi 7 is material and will keep growing in 2025, once all major vendors are recognizing revenues from the products that have been announced. In 2025, we expect that nearly 40 percent of manufacturers’ Indoor AP revenues will come from Wi-Fi 7,” continued Siân.

Additional highlights from the 3Q 2024 Wireless LAN Quarterly Report:

• The market share ranks of some vendors have been volatile following the supply constraints. Ubiquiti is taking advantage of this volatility and is expanding revenue share by targeting larger enterprises.
• Shipments of WLAN units to North America and EMEA grew on a Y/Y basis, confirming that the digestion of equipment oversupply is waning.
• Huawei remained the forerunner in Wi-Fi 7 shipments, although the company’s lead is shrinking as other vendors join the race and gain momentum.
• We predict that, in 2025, new AI-Ops features for WLAN will be announced, and contribute to continued growth of recurring software revenues.

Dell’Oro