Global WLAN market shows slowing growth in Q1

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wlan vendors According to preliminary results published by research firm IDC, the enterprise segment continued to grow at a healthy rate and increased 10.3 percent over the same period last year. While the pace of the enterprise WLAN market growth has been steadily decreasing over the last several quarters, the market continues to be one of the faster growing networking market segments. The consumer WLAN market also had a stable quarter in 1Q14 and grew 3.8 percent year-over-year. The growth in the consumer WLAN space benefited from the ongoing transition from the older 802.11n standard to the newer and faster 802.11ac standard as well as a solid performance in emerging markets. “WLAN infrastructure continues to be a bright spot in the networking market, with mobility and cloud driving investments and refresh cycles across geographies and verticals,” said Rohit Mehra, vice president for network infrastructure at IDC. “While a stabilizing growth rate suggests the market maturing, new vertical-specific use cases and the ramping adoption of the emerging 802.11ac standard will fuel sustained growth in the enterprise WLAN market for the foreseeable future.” From a geographic perspective, the enterprise WLAN market performed especially well in Latin America with its 33.3 percent year-over-year growth in 1Q14. Europe, Middle East, and Africa (EMEA) region followed with a 12.1 percent year-over-year increase. Asia-Pacific grew just under 10 percent at 9.9 percent year-over-year and North America grew below the overall market level at 7.7 percent year-over-year. “Although some of the leading vendors experienced flattening revenues in the first quarter, growth in the worldwide enterprise WLAN market will remain strong as technological evolutions drive network upgrades as well as greenfield deployments,” said Petr Jirovsky, research manager at IDC. Key enterprise WLAN vendor updates

? Cisco’s 1Q14 worldwide enterprise WLAN revenue was flat year-over-year and declined -11.6 percent quarter-over-quarter due to typical seasonality. Cisco was particularly impacted by relative weakness in the service provider vertical in the Asia-Pacific region, which declined -16.8 percent year-over-year. Cisco’s worldwide market share stands at 47.9 percent in 1Q14, down from 48.4 percent in 4Q13 and 52.8 percent in 1Q13.

? Aruba (excluding its OEM business) had a very strong quarter in 1Q14 and revenue increased 25.4 percent year-over-year and 8.4 percent sequentially on strength across its product portfolio, including the 802.11ac and Aruba Instant access points. Aruba’s market share increased to 11.9 percent of the enterprise WLAN market, up from the 9.8 percent in 4Q13 and 10.5 percent in 1Q13.

? Ruckus also handily outperformed the overall enterprise WLAN market after growing 36.4 percent year-over-year and 4.1 percent quarter over quarter in 1Q14. Ruckus now accounts for 6.7 percent of the overall market, up from 5.4 percent in 1Q13.

? HP’s 1Q14 revenue underperformed the overall market and decreased -10.5 percent year-over-year and slipped below $50 million for the quarter. As a result, HP’s market share dropped to 4.4 percent of the market from 5.4 percent last quarter.


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