WLAN Sales Steady in Recession

Despite an overall fall in IT budgets, the overall wireless LAN market continues to be active.

Research firm Dell’Oro Group estimates that revenues for 2009 will come in approximately 10 percent below 2008, with the small office/home office segment performing better than enterprise. However, sales will begin rising in 2010 and will continue through 2013, with the largest increases coming from the enterprise segment.

Overall, the 802.11n technology is making headway. “Despite lower budgets, both household and enterprise users are opting for the higher-priced, higher-performance 802.11n products,” said Ben Kwan, analyst of wireless LAN research at Dell’Oro. “This trend will lift overall WLAN revenues for the next couple of years.”

Other positive factors in the report that are contributing to the enterprise-segment rebound include the trend to mobility, the impact of replacement sales, and the timing of the U.S. government healthcare IT initiative.

Dell’Oro Group forecast 2009 sales to household users, the Small Office Home Office (SOHO), to fall 5 percent below 2008 levels to $2.6 billion, while sales to the enterprise segment falls 17 percent to $1.4 billion.

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