Market Overview

Worldwide Enterprise WLAN Market Maintains Moderate Growth Momentum in Second Quarter of 2018, According to IDC

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Enterprise WLAN Market Grew 2.6% Year Over Year in Q2 2018;
Consumer Market Up Just 0.8%

The combined consumer and enterprise wireless local area network (WLAN)
market segments rose 1.9% year over year in the second quarter of 2018
(2Q18) with worldwide revenues of $2.5 billion. According to results
published in the International Data Corporation (IDC)
Worldwide
Quarterly WLAN Tracker
, the enterprise segment grew 2.6% year over
year in 2Q18 to $1.5 billion. Continued demand for network refreshes,
digital transformation (DX) initiatives, and increased reliance on
wireless networks for engaging with customers are positive indicators
for continued growth in the second half of 2018.

The 802.11ac standard now accounts for 85.2% of dependent access point
unit shipments in the enterprise segment and 94.5% of dependent access
point revenues, marking this standard's full penetration into the
market. Beginning late in 2018 and early in 2019 the market will begin
to shift toward adoption of the new 802.11ax standard.

Meanwhile, consumer WLAN market revenue increased slightly, up 0.8% in
2Q18 compared to a year earlier, finishing at $1.0 billion. In 2Q18, the
802.11ac standard accounted for 49.4% of shipments and 73.9% of revenue.
802.11ac remained a bright spot in the consumer WLAN segment in 2Q18
with revenues increasing 13.1% year over year and shipments increasing
32.8%.

"The enterprise WLAN market continues to see moderate, steady growth,
underscoring the importance of wireless networking for businesses of all
sizes around the world," said Brandon
Butler
, senior research analyst, Network
Infrastructure
at IDC. "Enterprises continue to explore new ways
WLAN deployments can help connect workers, enable engagement with
customers, and improve business processes."

From a geographic perspective, the enterprise WLAN market saw its
strongest growth in 2Q18 coming from Japan, which grew 23.0% year over
year, and from the Latin America region, which rose 8.9% on a
year-over-year basis. Mexico, Latin America's largest market, saw a
24.5% revenue increase from a year earlier while Brazil's revenues were
up 30.1% on the year. Central and Eastern Europe (CEE) also saw healthy
growth rates with regional revenues increasing 6.3% compared to 2Q17.
Notable CEE markets included Russia with a 7.3% year-over-year gain and
Poland's with 12.9% growth.

Other regions had results more in line with the worldwide average. The
Asia/Pacific (excluding Japan) (APeJ) region grew 3.8% year over year in
2Q18. Standouts in the region included China, the largest market in
APeJ, which grew 19.7%, and India, which increased revenues 17.9% year
over year. The United States market rose 2.1% year over year. The Middle
East and Africa region was nearly flat (down 0.3%) year over year, while
Western Europe's WLAN market declined 2.9% compared to 2Q17. Germany,
which is the largest market in the Western Europe region, saw a 7.8%
year-over-year decline, while France helped hold back more dramatic
declines by posting 7.9% growth.

"While WLAN is a fairly mature market in the U.S., many regions around
the world are expected to increase their investing in wireless
technology, which will help fuel growth in the broader worldwide market
throughout the coming year," said Petr
Jirovsky
, research manager, IDC
Networking Trackers
. "Meanwhile, the coming introduction of 802.11ax
will lead to a new wave of refresh cycles for enterprises, providing an
expected boost to the market starting later this year or early next
year."

Key Enterprise WLAN Company Highlights
Cisco's
worldwide enterprise WLAN revenue increased 3.3% year over year in 2Q18
and was up 12.5% sequentially between the first and second quarters of
2018. Cisco's worldwide market share was 43.6% in 2Q18, in line with the
company's 43.3% share in 2Q17. IDC believes that the Meraki
cloud-managed WLAN portfolio remains one of the primary growth drivers
for Cisco.

Aruba-HPE (excluding its OEM business) revenues fell 10.3% year
over year in 2Q18 but rose 38.9% from 1Q18. Aruba-HPE's market share
stands at 15.1% in 2Q18, down from 17.2% in 2Q17.

ARRIS/Ruckus continued to perform very well in 2Q18 and
grew 19.3% year over year and 1.5% sequentially. ARRIS/Ruckus now
accounts for 6.7% of the enterprise WLAN market, up from 5.8% in the
same quarter of 2017.

Ubiquiti recorded another quarter of strong growth in 2Q18,
increasing 10.8% year over year. Ubiquiti accounted for 5.7% of the
enterprise market in 2Q18, up from 5.3% in 2Q17.

Huawei once again experienced very strong growth in 2Q18,
increasing 16.0% over 2Q17 and up 42.8% sequentially from 1Q18, while
claiming 5.1% market share versus its 4.5% market share in 2Q17.

The IDC
Quarterly WLAN Tracker
provides total market size and vendor share
data in an easy-to-use Excel Pivot Table format. The geographic coverage
includes eight major regions (USA, Canada, Latin America, Asia/Pacific
(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.

For more information about IDC Quarterly WLAN Tracker, please contact
Kathy Nagamine (knagamine@idc.com).

About IDC Trackers
IDC
Tracker
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
opportunities and trends in over 110 countries. IDC's analysis and
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community to make fact-based technology decisions and to achieve their
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subsidiary of International Data Group (IDG),
the world's leading media, data and marketing services company that
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