Wi-Fi Market

[126 Pages Report] The Wi-Fi market size is estimated to grow from USD 5.96 Billion in 2017 to USD 15.60 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 21.2%. The major factors driving the Wi-Fi market are growing implementation of BYOD with in organizations, increase in demand for wireless and smart devices, and emergence of IoT.  In this study, 2016 has been considered as the base year and 2017-2022 as the forecast period.

Key Market Dynamics in Wi-Fi Market

Rapidly increasing demand for wireless and smart devices

Smartphones, smart televisions, and smart devices, among others, are being adopted by customers at a rapid pace. Smart and wireless devices require Wi-Fi networks to stay connected via the remote technology, so that users can access and command The devices from any location. Smart wireless devices need Wi-Fi networks to ensure uninterrupted connectivity.

According to a report published by Cisco, in 2016, Personal Computers (PCs) accounted for 46% of the total IP traffic, while smartphones accounted for 13% of the entire IP traffic. However, by 2021, it is predicted that PCs will account for only 25% of the overall IP traffic, whereas smartphones will account for 33% of the total IP traffic. The traffic originating from TVs, tablets, smartphones, and machine-to-machine modules is expected to grow at CAGRs of 21%, 29%, 49%, and 49%, respectively.

Therefore, it is observed that there will be significant growth in the development and shipment of wireless and smart devices, which in turn, would drive the growth of the Wi-Fi market among enterprises. For instance, the daily business of stock market operators and bankers is dependent on the internet, as they need to check and follow market and economic news updates regularly. Additionally, the need to stay online and remain connected has become highly imperative for some sectors, such as IT, telecommunications, and BFSI. The above requirements of diverse end-users can be met satisfactorily with the help of Wi-Fi hotspots.

Contention loss and co-channel interference

Contention loss and co-channel interference are the key issues associated with Wi-Fi networks. Contention loss refers to poor network performance, due to many clients converging on a single AP, whereas co-channel interference is caused when 2 or more access points use the same Radio Frequency (RF) channel, thereby affecting the network performance. It is a threat in some of the mature markets, such as North America, Europe, and some APAC countries. The regions already have well-established Wi-Fi networks, and implementing a new network may cause network mapping between the channels, thereby hindering the performance of the network. Moreover, the distribution of users along the access points would not be even, which would pose a problem in making decisions about the implementation of new access points.

Objectives of the Study:

The main objective of this report is to define, describe, and forecast the global Wi-Fi market on the basis of platform, services, deployment types, organization sizes, verticals, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report aims to strategically analyze micromarkets with respect to individual growth trends, prospects, and contributions to the total market. The report attempts to forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product developments, and Research & Development (R&D) activities in the Wi-Fi market.

The research methodology used to estimate and forecast the Wi-Fi market begins with capturing data on key vendor’s revenues through a secondary research using sources such as Uptime Institute and IEEE. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global Wi-Fi market from the revenue of the key players in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key people, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of primary profiles is depicted in the figure below:

To know about the assumptions considered for the study, download the pdf brochure

The Wi-Fi ecosystem comprises vendors such as Cisco Systems, Inc. (Cisco), Ruckus Wireless, Inc. (Ruckus Wireless), Juniper Networks, Inc. (Juniper Networks), Aruba, a Hewlett Packard Enterprise company (Aruba), Huawei Technologies Co. (Huawei), Panasonic Corporation (Panasonic), Alcatel-Lucent Enterprise (Alcatel- Lucent), NETGEAR, Inc. (NETGEAR), Aerohive Networks, Inc. (Aerohive Networks), Riverbed Technology (Riverbed), and Ericsson AB (Ericsson).

Major Wi-Fi Market Developments

• In January 2017, Cisco extended its partnership with Ericsson to include a new Wi-Fi solution, Evolved Wi-Fi Networks (EWN), which integrates Ericsson's 3rd Generation Partnership Project (3GPP) access, core networks, and applications with Cisco's Wi-Fi portfolio.
• In September 2017, Aruba partnered with Purdue University’s College of Agriculture to help develop and deliver a digital agriculture program that would use Aruba’s Wi-Fi and HPE’s Edgeline solutions to revolutionize farming and food production activities for the growing, global population.
• In February 2018, Ruckus Wireless collaborated with Qualcomm to effectively complete the industry’s first trial of enhanced Wi-Fi certified vantage features, which would provide better carrier Wi-Fi experience.

The target audiences of the Wi-Fi market report are:

• Wi-Fi solution providers
• Wi-Fi service providers
• IT solution providers
• Cloud service providers
• Network solution providers
• System integrators
• Independent service providers

 “Study answers several questions for the stakeholders, primarily which market segments will focus in next two to five years for prioritizing the efforts and investments”.

Scope of the Wi-Fi Market Report:

The research report categorizes the Wi-Fi market to forecast the revenues and analyze the trends in each of the following subsegments:

Wi-Fi Market By Component:

• Solutions
• Services

Wi-Fi Market By Solutions:

• Access Points
• WLAN Controllers
• Wireless Hotspot Gateways
• Others (routers, switches, antennas, repeaters, and extenders)

Wi-Fi Market By Services:

• Network Planning and Design
• Installation
• Support
• Survey and Analysis

Wi-Fi Market By Density

• High-density Wi-Fi
• Enterprise-class Wi-Fi

Wi-Fi Market By Vertical:

•  Education
•  Healthcare
• Retail
• Transportation
• Government
•  Manufacturing
• Hospitality
• Sports and Leisure
• Others (BFSI, oil and gas, and defense and military )

Wi-Fi Market By Region:

• North America
• Europe
• Middle East and Africa (MEA)
• Asia-Pacific (APAC)
• Latin America

Critical questions which the report answers

• What are the industries which the Wi-Fi companies are exploring?
• Which are the key players in the market and how intense is the competition?

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis:

• Product matrix which gives a detailed comparison of product portfolio of each company

Geographic Analysis:

• Further breakdown of the North America Wi-Fi market
• Further breakdown of the Europe market
• Further breakdown of the APAC Wi-Fi market
• Further breakdown of the MEA market
• Further breakdown of the Latin America market

Company Information:

• Detailed analysis and profiling of additional market players

The Wi-Fi market is expected to grow from USD 5.96 Billion in 2017 to USD 15.60 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 21.2% during forecast period. The major factors driving the Wi-Fi market are implementation of BYOD with in organizations, increase in demand for wireless and smart devices, and emergence of IoT.

The development of various Wi-Fi-enabled devices in the market has increased consumers’ demand, which in turn, has increased the sale of smart home and work devices. Devices such as lighting systems and thermostats are already installed in homes and workplaces across various developed countries. Developed countries, such as the US, Japan, and Germany, have witnessed large-scale deployments of smart home security and other vehicle infotainment devices. These smart devices need to connect with other devices via homogeneous or heterogeneous networks. Wi-Fi makes the integration and interconnection with other devices easy and less complex.

The report provides detailed insights into the global Wi-Fi market which is segmented on the basis of component (solutions and services), by density, by vertical, and by region. Large enterprises and SMEs of this region are also shifting toward the Wi-Fi technology for their connectivity needs. Hence, North America is expected to be the largest revenue contributor to the Wi-Fi market during the forecast period.

Implementation of BYOD with in organizations is expected to drive the growth of Wi-Fi market

Education

With the education vertical evolving, the introduction of internet and smart devices has significantly encouraged the eLearning segment in this industry. In the current scenario, eLearning has been introduced and is accessible even in rural areas, owing to the availability of Wi-Fi. The education vertical is flourishing due to the increased use of smart devices, wireless technology, and internet services. As compared to wired internet services, wireless services are more reliable and easy to access; Wi-Fi is less time-consuming and is available as and when required. Wireless hotspots have also contributed to the growth of the education vertical. Educational institutions often face barriers in communication due to varied languages and cultures of students and teachers. However, owing to easy internet access, this communication gap has been lowered further with the help of video and audio content, which can be made available in any language. The development of smart technology in the education vertical is expected to drive the demand for Wi-Fi in this industry. Companies that offer Wi-Fi products and services to the education vertical include Cisco, Aruba, Aerohive Networks, Huawei, and Ruckus Wireless..

Healthcare

Hospitals require high-speed Wi-Fi services to access patients’ data during emergency situations. Wi-Fi services enable proper maintenance of Electronic Medical Records (EMRs), which give doctors and hospital authorities simplified access to a patient’s medical records. The deployment of Wi-Fi services in a hospital requires a huge amount of planning, design, and installation. The healthcare vertical works on the MMM network, which saves the operating cost and minimizes the time involved in the process. There are various medical devices in the healthcare vertical that require constant care and monitoring in real time; for example, cardiac telemetry systems, drug delivery systems, and patient monitoring systems require real-time Wi-Fi. The real-time monitoring systems are used in many medical institutions and hospitals to track wheelchairs and movable devices for elderly patients. The availability of Wi-Fi hotspots for visitors, guests, and hospital’s senior management staff is increasing customer and employee satisfaction. However, medical applications, installed in devices distributed to doctors, nurses, and the staff, should be updated regularly to avoid any backlog or discrepancy. Some of the companies offering Wi-Fi products and services to the healthcare vertical are Cisco, Aptilo, Ruckus Wireless, Aerohive Networks, Aruba, and Netgear.

Retail

The retail vertical includes shopping malls, meeting rooms, convention centers, etc. Companies such as Netgear, Ruckus Wireless, WiFi SPARK, and Aptilo offer Wi-Fi products and services for the retail vertical. The retail vertical has adopted various strategies to increase customer satisfaction and revenue per customer; offering free Wi-Fi services is the main revenue booster. The process begins with Wi-Fi companies offering temporary services to retail outlets; if the owners are satisfied with the services, then the Wi-Fi deployment contract is signed with the service provider. The hospitality providers and retailers should analyze if deploying Wi-Fi services can generate higher revenues per customer. Wi-Fi offers a number of benefits to this vertical. Retailers can offer new product displays on customers’ devices via Wi-Fi in shopping malls; and customers can book in advance for the products that are not on shelves yet. Wi-Fi also increases the working efficiency of the retail staff and shopkeepers. Functions such as inventory management, eBilling, staff management, discounts, and returns are managed efficiently with the help of Wi-Fi.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for Wi-Fi Market?

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The report covers all the major aspects of the Wi-Fi market and provides an in-depth analysis across the regions of North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and Latin America. North America is expected to hold the largest share in the market. The APAC region is projected to have great opportunities in this market and would grow at the highest CAGR by 2022.

However, stringent government rules and regulations may act as the restraining factor for the market. Various vendors are coming up with innovative wireless and smart devices that leads to rise in Wi-Fi market. The players have formed various inorganic and organic growth strategies to make their focus strong in Wi-Fi platform. The major vendors providing Wi-Fi platform are Cisco Systems, Inc. (Cisco), Ruckus Wireless, Inc. (Ruckus Wireless), Juniper Networks, Inc. (Juniper Networks), Aruba, a Hewlett Packard Enterprise company (Aruba), Huawei Technologies Co. (Huawei), Panasonic Corporation (Panasonic), Alcatel-Lucent Enterprise (Alcatel- Lucent), NETGEAR, Inc. (NETGEAR), Aerohive Networks, Inc. (Aerohive Networks), Riverbed Technology (Riverbed), and Ericsson AB (Ericsson). These players adopted various strategies such as new product launches, partnerships, collaborations, and expansions to become competitive in the Wi-Fi market.