Dell'Oro Group: Wireless LAN backlogs at 10x normal levels

Manufacturers remain limited by supply, leaving enterprises scrambling to find creative wi-fi solutions. #pressrelease

August 10, 2022

2 Min Read

REDWOOD CITY, Calif. – According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, the overall market is expected to exceed $10 billion by 2026, and see a healthy CAGR over the next five years. Enterprise Wireless LAN backlogs will balloon to over 100 percent of revenues in 2022, leaving companies to get inventive in their search for Wi-Fi coverage. A boost in unit shipments is not expected until late 2023, with a return to normal unit growth still two years away.

Additional highlights from the Wireless LAN July 2022 5-Year Forecast Report:

  • A calculation on published backlog levels of manufacturers outside China reveals order books swell to over ten times their normal level, exceeding the size of their annual revenues.

  • This year's market growth of nine percent will be mainly fueled by price increases, with unit shipments remaining constrained. Increased prices will boost 2023 revenues as manufacturers pass on higher costs, but price erosion will begin to take hold in 2024 and beyond.

  • The first enterprise-class Wi-Fi 7 shipments in the fourth quarter of 2023 are predicted to dampen the take-up of Wi-Fi 6E.

  • While the adoption of public cloud-managed Wireless LAN will expand, a substantial portion of customers will prefer private cloud and on-premises solutions as enterprises reevaluate their cloud strategy.

About the Report

The Dell'Oro Group Wireless LAN 5-Year Forecast 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: 802.11be (Wi-Fi 7), 802.11ax (Wi-Fi 6 and 6E [6 GHz]), 802.11ac (Wi-Fi 5) Wave 1 vs. Wave 2, and historic IEEE 802.11 standards. The Enterprise market is forecast by Public Cloud vs. Private Cloud and Premises Managed, as well as by macro-region of the world.

Read the full press release here.

Dell'Oro

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