China Market to Decelerate and Grow at Pace with the Rest of Asia Pacific

The latest Dell’Oro Group Wireless LAN (WLAN) 5-Year Forecast report (2018-2023) indicates that the Enterprise WLAN market will slow as it approaches $9.6 B over the next five years. The China market is expected to decelerate and grow at pace with the rest of the Asia Pacific region.

Chinese service providers are no longer deploying WLAN equipment in mobility environments, resulting in 2018 as one of the slowest growth years to date.  Despite the slowdown, we expect the WLAN market in China to grow over the forecast period. We anticipate wireless expansion and transition to new 802.11ax (Wi-Fi 6) technology in the enterprise segment as key growth drivers for the China market.

While 5G will enter the market during the forecast period, we maintain our position on its impact on WLAN.   As discussed in our report, we do not recognize cellular (including 5G) and private LTE networks as drivers for enterprise customers to substitute WLAN for in-building connectivity. Following are additional key takeaways from the WLAN 5-Year Forecast Report:

  • Demand for WLAN equipment and an increase in average selling price will move the WLAN market to approach $17.6 B in revenue over the next five years.
  • In comparison to previous technology (802.11ac), we expect 802.11ax to sustain a price premium for a longer period.
  • The revenue contribution from licenses is expected to exceed the contribution from access points for the Enterprise Cloud.
  • In the SOHO market, wireless router shipments are projected to surpass 50 million.

About the Wireless LAN 5-Year Forecast Report

The Dell’Oro Group Wireless LAN 5-Year Forecast Report offers a complete overview of the industry, covering Enterprise Outdoor and Indoor markets, SOHO markets with tables containing manufacturers’ revenue, average selling prices, and unit shipments by the following wireless standards: 802.11ax, 802.11ac Wave 1 vs. Wave 2, 802.11n, and historic IEEE 802.11 standards.