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Dell'Oro: 802.11 Kit up 1%

Dell'Oro Group, the market research firm, says that the wireless LAN equipment market grew 1 percent in value quarter-on-quarter in the first three months of this year.

This represents a good result, according to Dell'Oro, for a couple of reasons. First, the first quarter is usually slow. Second, total shipments were actually up 6 percent, but the ever-falling price of equipment meant that vendors only saw a slight increase in revenue. Dell'Oro says that firms sold $411 million worth of kit in the first quarter of 2003.

Pre-standard implementations of the g specification (54-Mbit/s over 2.4GHz) are selling particularly well to the small office home office (SOHO) market, according to Dell'Oro. Equipment using the new specification made up 29 percent of SOHO sales, the firm says. "We anticipate that the SOHO market will rapidly transition from 802.11b to 802.11g over the course of 2003," says Greg Collins, director, Dell'Oro Group.

Counting both SOHO and enterprise sales, Dell'Oro ranks Linksys Group Inc. as the overall, number one vendor. Cisco Systems Inc. (Nasdaq: CSCO) is top of the class in enterprise sales.

Table 1: Wireless LAN - 802.11 Total Market
Vendor Rank Growth
Linksys 1 18%
Cisco 2 0%
Buffalo 3 -3%
D-Link 4 6%
Netgear 5 13%
Source: Dell'Oro Group (includes enterprise and SOHO-class access points/bridges, broadband gateways, and NICs for 802.11b, 802.11g, and multimode)


— Dan Jones, Senior Editor, Unstrung

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