WLAN Market Reaches $2.4B As HPE Aruba, Huawei Gain Share

$2.37B Worldwide WLAN Market In Q2 2017

Market share in the wireless LAN vendor landscape is shifting with leaders incluing Cisco Systems and Brocade Communications losing share, while Hewlett Packard Enterprise and Huawei are gaining momentum, according to second-quarter 2017 data from research firm IDC.

"The enterprise WLAN market's second-quarter 2017 performance sends a strong message that this market is still in growth mode," said Nolan Greene, senior research analyst, network infrastructure for IDC, in a statement. "WLAN is a critical enabler of end-to-end digital transformation strategies as wireless applications and devices continue to unlock new digital and business outcomes."

CRN breaks down everything you need to know about the WLAN market for the second-quarter 2017.

WLAN Market Growing

The combined consumer and enterprise worldwide WLAN market grew 2.5 percent year over year to $2.37 billion in the second quarter of 2017, with 802.11ac standard now accounting for 92 percent of dependent access point revenues.

The enterprise WLAN segment grew 9.4 percent to $1.5 billion compared with the same quarter one year ago, while consumer sales dropped 7.2 percent to $892 million. IDC said the steady stream of upgrades to 802.11ac shows that enterprises are investing in digital transformation.

Cisco

Cisco Q2 2017 Market Share: 43.2%

Cisco Q2 2016 Market Share: 43.7%

The San Jose, Calif.-based networking giant finished the second quarter with WLAN revenue increasing 8.2 percent year over year. However, although Cisco generated more than $1 billion in WLAN sales, its market share slightly dipped 0.5 percent to 43.2 percent during the quarter compared with one year ago.

IDC said Cisco's Meraki cloud-managed WALN portfolio remains one of the primary growth drivers for Cisco, offsetting declines in its traditional controller-based wireless portfolio.

HPE-Aruba

HPE Q2 2017 Market Share: 17.2%

HPE Q2 2017 Market Share: 14.6%

WLAN revenue for Hewlett Packard Enterprise, which acquired wireless specialist Aruba Networks in 2015 for $3 billion, increased 29 percent year over year to $408 million in the second quarter. HPE's market share grew to 17.2 percent, representing a 2.6 percent increase compared with the same quarter one year ago.

Brocade-Ruckus

Brocade-Ruckus Q2 2017 Market Share: 5.8%

Brocade-Ruckus Q2 2016 Market Share: 6.8%

Brocade Communications, which acquired Ruckus Wireless last year for $1.2 billion, saw a 7.4 percent decline in revenue year over year, generating $137 million during the quarter. Brocade's market share dropped 1 percent during second quarter 2017 to 5.8 percent compared with the same quarter one year ago.

Brocade-Ruckus is set to be acquired by Broadcom by the end of October for $5.9 billion. Broadcom plans to then sell Ruckus and its IP networking business to Arris International immediately.

Ubiquiti

Ubiquiti Q2 2017 Market Share: 5.3%

Ubiquiti Q2 2016 Market Share: 4.2%

Ubiquiti increased sales by 37 percent year over year, capturing $125 million in WLAN revenue during second quarter 2017. The New York-based vendor's market share in the space grew by 1.1 percent to 5.3 percent compared with the same quarter one year ago.

Huawei Share Jumps

Huawei Q2 2017 Market Share: 4.5%

Huawei Q2 2016 Market Share: 2.3%

The Chinese network and telecom giant grew wireless sales by a whopping 112 percent year over year to $107 million. Huawei nearly doubled its market share size in the WLAN space during the quarter, climbing to 4.5 percent share compared with 2.3 percent during second-quarter 2016.