Enterprise LAN Sector Recovery Report | Computer Weekly

Enterprise LAN Sector Recovery Report | Computer Weekly

The enterprise wireless local area network (WLAN) market has rebounded significantly after a tumultuous two-year period marked by supply chain disruptions caused by the Covid-19 pandemic. According to data from IDC, the market surged by 10.6% in the first quarter of 2025, reaching a remarkable $2.3 billion in value. This positive trend is largely due to the easing of backlogged product orders that plagued the industry during the height of the pandemic.

Market Overview and Growth Factors

The latest findings from IDC’s Worldwide quarterly wireless LAN tracker detail the overall performance of the WLAN market across 60 countries in nine major regions, including North America, Latin America, Asia-Pacific, and Europe, among others. The comprehensive analysis looks at various factors such as product class, type, and geographical distribution, offering a holistic view of the market landscape.

One of the key drivers of market recovery and growth is the increasing adoption of the latest Wi-Fi standards. The introduction of Wi-Fi 6E, which makes use of the 6GHz band, has proven particularly influential. In the first quarter of 2025, Wi-Fi 6E contributed to 31.9% of revenues in the dependent access point market segment, an increase from 27.7% a year prior. This shift highlights a growing trend towards faster and more reliable wireless connectivity in enterprise environments.

Moreover, the adoption of Wi-Fi 7 is on the rise, demonstrating advancements in performance and capabilities. The new standard accounted for 11.8% of dependent access point revenues in Q1 2025, up from 10.2% in the previous quarter, indicating that enterprises are beginning to prioritize cutting-edge technologies.

Geographical Performance Insights

The enterprise WLAN market’s growth varied by region in Q1 2025. In the Americas, the market saw an impressive year-on-year increase of 15.2%, led by a robust 21% growth in the United States. Conversely, the Asia-Pacific region experienced a more modest increase of 1%, primarily due to a 4.2% decrease in market revenues in China. Meanwhile, the Europe, Middle East, and Africa (EMEA) region recorded a healthy growth rate of 11%, underscoring the recovery trajectory across diverse global markets.

Leading Suppliers and Market Shares

As the WLAN market continues to stabilize, the performance of leading providers provides valuable insights into competitive dynamics. Cisco remains the clear leader in the enterprise WLAN sector, with revenues of $904.5 million in Q1 2025, translating to a market share of 39.5%. This is more than double that of its closest competitor, HPE Aruba Networking, which saw a revenue increase of 10.7%, totaling $363.9 million and a market share of 15.9%.

Ubiquiti has also made notable strides, generating $267.4 million in enterprise WLAN revenues, which represents a staggering 50.9% annual growth, granting the company an 11.7% market share. On the other hand, Huawei faced challenges, reporting a revenue decline of 10.7% compared to Q1 2024, amounting to $124.1 million and a market share of 5.4%. Juniper Networks completed the top five, with an increase of 21.9% year-on-year, equating to revenues of $120.9 million and a market share of 5.3%.

Future Outlook

Despite the ups and downs brought on by supply chain issues, the outlook for the enterprise WLAN market remains positive. Brandon Butler, a senior research manager at IDC, emphasizes that the foundational elements of the market are robust. “The enterprise WLAN market continues to reset after a volatile period of annualized growth rates, driven by complex supply chain disruptions and inventory management issues impacting both vendors and end users,” he stated. Innovations like 6GHz Wi-Fi and AI-driven management capabilities are set to propel the next generation of wireless connectivity, ensuring that enterprises remain equipped to meet their evolving networking needs.

Quick Reference Table

Quarter Revenue (in billions) Growth Rate (%) Leading Supplier Supplier Revenue (in millions) Market Share (%)
Q1 2025 2.3 10.6 Cisco 904.5 39.5
Q1 2024 N/A N/A HPE Aruba 363.9 15.9

As the enterprise WLAN market continues to adapt and expand, organizations looking to enhance their wireless networks should consider investments in the latest technologies to keep pace with industry advancements and maintain competitive advantages.