Wireless LAN Market Propped Up by Education and Government Spending

In BICSI Blog, BICSI Bytes, Featured, News by info@bicsi.com.au

According to a recent Dell’Oro Group report, the Q2 2020 global Wireless LAN market was propped up by spending from the Education and Government vertical industries.

Wireless LAN manufacturers such as Cisco, Extreme Networks, H3C, Huawei, and Ruckus point to the Education vertical as the number-one sector contributing to revenues. The report noted that, while education is typically among the top-three, it’s unusual to be consistently number one.

“Government funding is clearly supporting the Wireless LAN market,” said Tam Dell’Oro, CEO and Wireless LAN Analyst at Dell’Oro. “We expected overall market sales to decline well into the double-digits year-over-year, but actual results were much stronger declining only 12% with governments’ rapid responses. The Hospitality, Logistics, and Retail verticals generally comprise about one-quarter of market sales, but declined to about one-sixth in Q2 2020 and we expect further declines. These segments could take years to return to pre-pandemic levels.”

Additional highlights from the Report:

  • Wi-Fi 6 sales rose quarter-to-quarter, but the penetration rate is about half the rate of the previous new technology; and
  • Sales of cloud-managed slowed following a strong Q1 2020.