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WLAN Industry to Generate $1.67 Billion in 2003
Posted: 10-Apr-2003 [Source: ABI]

[New report predicts "stellar" growth in the W-LAN industry as larger companies enter the arena and deploy networks in key markets.]

Oyster Bay, NY -- The wireless LAN (WLAN) industry is experiencing tremendous growth aided by lower pricing points and standardization of technology. Research firm Allied Business Intelligence (ABI) believes that this growth will continue to accelerate, as larger technology and telecommunications companies, including Microsoft, Intel, Dell, AT&T, and IBM, to name a few, enter the WLAN industry. These corporations bring deep financial pockets and millions of potential consumers to the WLAN industry.

"The WLAN industry will continue to experience stellar growth as deployments in several key markets take place," predicts Edward A. Rerisi, ABI Director of Research. "These key markets include residential homes, small-medium offices, enterprises, academic campuses, transportation facilities, health care sites, industrial centers, and at the local neighborhood eatery. Additionally, 802.11a, 802.11g, and dual band protocols are some of the key catalysts that will accelerate the market adoption of WLAN with its higher speeds of up to 54 Mbps". ABI's research has determined that the overall WLAN industry will generate $1.67 billion in total revenue through the end of 2003.

The report, "Wi-Fi Networking Equipment: Worldwide Deployments, Drivers, Players and Forecasts for 802.11x", examines the deployments of WLAN equipment worldwide and provides a realistic outlook on where the industry is headed. This report also covers protocol and standards development, the opportunities and challenges for equipment vendors, and the challenges to deploying WLAN worldwide. Critical analyses of the key equipment vendors worldwide are covered. Market forecasts are segmented by standards .11b, .11a, and .11g, and dual-band. Worldwide WLAN equipment and revenues forecasts, and end user analysis are included in this report. Detailed examination of technology shifts, market leaders, and revenue by world regions through 2008 are also included.

With the strong global demand for WLAN solutions comes the parallel demand for chipsets, which according to ABI, are set to hit 23 to 25 million units this year, up from 7.9 million in 2001. This is considerably above initial expectations for 14-15 million chipsets, and it points towards an acceleration in catalysts driving Wi-Fi adoption.

Taking into account rapid price declines of integrated circuits (ICs), a growing confidence in new addressable markets, and the immense interest in 802.11 technology, ABI's new forecasts indicate that between 2002 and 2007, Wi-Fi chipset shipments are set to grow at a CAGR of 43%. Hence, by 2007 shipments will reach 147.5 million chipsets, with revenues of $1.13 billion.

"There is a very elastic relationship between pricing and demand in the wireless LAN market, and every step down in prices brings the industry closer to unlocking new opportunities and applications," continues Mr. Rerisi. "There is fierce competitive innovation in this market and it is critical for market participants to commit significant resources if they hope to compete."

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