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Vendors Lose Opportunities as Supply Lead Times Extend Beyond Government Use By Date

REDWOOD CITY, Calif. – March 10, 2021 – According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, government spending drives the Wireless LAN market to double-digit growth year-over-year, as stimulus unfolds in many countries including China, Japan, and the USA. Overall market outlook strengthens. Wireless LAN vendors lose opportunities as supply lead times extend beyond government funding use by date.

“While government spending is flowing into all vertical industries, it is most notable in K-12 Education and Government,” said Matthias Machowinski, Senior Research Director at Dell’Oro Group. “We estimate those two verticals alone contributed an additional 15 percent to overall market spend during 4Q 2020, as sales to K-12 increased 90 percent and Government increased almost 40 percent—extraordinary rates. Clearly, government spending is lifting overall market sales and by our judgment, is likely to continue through 2021 and beyond,” added Machowinski.

Additional highlights from the Wireless LAN 4Q 2020 Quarterly Report:

  • Wi-Fi 6 achieved a major milestone, accounting for the majority of access point revenue. Notable growth came from government-funded projects in China, Japan, and Mexico.
  • Demand surges for entry-level Enterprise-class access points for remote employees.

About the Reports

The Dell’Oro Group Wireless LAN Quarterly Report offers complete, in-depth coverage of the Enterprise Outdoor and Indoor markets, Wireless LAN Controllers with tables containing manufacturers’ revenue, average selling prices, and unit shipments by the following wireless standards: 802.11ax (Wi-Fi 6) and separately 6E 6 GHz, 802.11ac (Wi-Fi 5) Wave 1 vs. Wave 2, 802.11n, and historic IEEE 802.11 standards. The Enterprise market is portrayed by Cloud vs. Premises Managed, as well as by ten Vertical markets.  To purchase these reports, please contact us by email at dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com. 

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