Embedding WLANs in the enterprise: Industry Report

Embedding WLANs in the enterprise

Product Type: Market Research Report
Published by: Datamonitor
Published: January 2006
Product Code: R313-14181

Description

Introduction
The enterprise WLAN market is now moving away from trial implementation stage and towards campus-wide coverage. To facilitate this move, centralized management of WLAN solutions is set to become increasingly commonplace over the next three years, which will in turn drive the potential of voice over WLAN services.

Scope
Considers the key trends and issues that are impacting upon the development of the enterprise WLAN sector.
Segments WLAN opportunities by geography, vertical market, technology and sizeband, providing revenue forecasts from 2004 to 2008.
Highlights
Enterprise WLAN infrastructure revenues will grow from $890 million in 2004 to almost $1.4 billion in 2008. Access points accounted for around 59% of equipment revenues in 2004, although a combination of falling prices and increased spend on wireless switches will dilute the importance of these devices in revenue terms.

North America will remain the largest market with regard to WLAN spending, with enterprises in the region investing over $500 million in related equipment in 2008.

Increasing complexity and scope are driving the need for more centralized management of WLAN solutions. As a result, revenues relating to wireless switches/appliances are set to grow rapidly over the next three years.

Reasons to Purchase
Quantification of the revenue opportunities for both WLAN equipment vendors and third party integrators and consulting companies to 2008.
Provides a framework for conceptualizing WLAN opportunities thereby improving vendors' go-to-market approach.

Table of Contents

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 3

Introduction 3

Market context 3

Customer focus 4

The future decoded 6

CHAPTER 2 INTRODUCTION 14

What is this report about? 14

Who is the target reader? 14

How to use this report 14

Forecasts and assumptions 15

CHAPTER 3 MARKET CONTEXT 16

Introduction 16

Key findings 16

Wireless LAN markets 17

WLAN market development 17

WLAN market drivers and inhibitors 20

Cost savings and improved flexibility are key WLAN drivers 20

Security becoming less of an issue 21

Key developments over the past 12 months 25

WLAN deployments becoming more widespread 25

Centralized approach gains traction and support 26

Continued standards development 29

Restructuring of the competitive environment 31

Voice services starting to take center stage 34

Location-based services and guest access offer potential 38

Summary: enterprise WLAN market evolution 41

CHAPTER 4 CUSTOMER FOCUS 42

Introduction 42

Key findings 42

Identifying opportunities in the enterprise WLAN sector 43

Vertical opportunities broadening 43

Financial services firms will invest heavily by 2008 47

Large enterprises account for the majority of revenues 48

CHAPTER 5 THE FUTURE DECODED 51

Introduction 51

Key findings 51

WLAN infrastructure opportunities 52

Enterprise WLAN infrastructure market to reach $1.4bn by 2008 52

The UK will remain the key Western European market for WLANs 53

Wireless switch opportunity set to grow rapidly 55

Trend toward centralized management will drive thin AP sales 57

Wireless switching will increasingly be built into wired products 58

VoWLAN handset market to exceed $1.2 billion by 2008 59

Strong growth expected in WLAN services sector 62

Summary 65

APPENDIX 66

Definitions 66

Research methodology 67

Further readings 67

SPP writing team 68

How to contact experts in your industry 68

LIST OF TABLES

Table 1: Degree to which security concerns have hindered WLAN deployment, by geography 23

Table 2: WLAN security solution deployment by geography 24

Table 3: Extent of WLAN deployment among enterprises by geography 27

Table 4: Guest access market starting to gain momentum 41

Table 5: North American enterprise WLAN infrastructure revenues by vertical, 2004-2008 48

Table 6: EMEA enterprise WLAN infrastructure revenues by vertical, 2004-2008 49

Table 7: North American enterprise WLAN infrastructure revenues by sizeband, 2004-2008 50

Table 8: EMEA enterprise WLAN infrastructure revenues by sizeband, 2004-2008 51

Table 9: Global enterprise WLAN infrastructure revenues by region, 2004-2008 54

Table 10: Western European enterprise WLAN infrastructure revenues by region, 2004-2008 55

Table 11: Global WLAN infrastructure revenues by device type, 2004-2008 57

Table 12: Access point revenues by type, 2004-2008 58

Table 13: Wireless switch revenues by type, 2004-2008 60

Table 14: VoWLAN handset revenues by geography, 2004-2008 61

Table 15: Overall North American/EMEA VoWLAN handset revenues by device type, 2004-2008 63

Table 16: Global enterprise WLAN deployment opportunities, 2004-2008 65

LIST OF FIGURES

Figure 1: Enterprise WLAN roadmap 3

Figure 2: Vertical WLAN opportunities 5

Figure 3: Global enterprise WLAN infrastructure revenues by region, 2004-2008 6

Figure 4: Enterprise spending accounted for 35% of overall WLAN revenues in 2004 18

Figure 5: Degree to which security concerns have hindered WLAN deployment, by geography 22

Figure 6: WLAN security solution deployment by geography 23

Figure 7: Extent of WLAN deployment among enterprises by geography 25

Figure 8: Key IEEE WLAN standards 29

Figure 9: Guest access market starting to gain momentum 40

Figure 10: Enterprise WLAN roadmap 41

Figure 11: Vertical WLAN opportunities 46

Figure 12: North American enterprise WLAN infrastructure revenues by sizeband, 2004-2008 49

Figure 13: EMEA enterprise WLAN infrastructure revenues by sizeband, 2004-2008 50

Figure 14: Global enterprise WLAN infrastructure revenues by region, 2004-2008 52

Figure 15: Western European enterprise WLAN infrastructure revenues by region, 2004-2008 54

Figure 16: Global WLAN infrastructure revenues by device type, 2004-2008 55

Figure 17: Access point revenues by type, 2004-2008 57

Figure 18: Wireless switch revenues by type, 2004-2008 58

Figure 19: VoWLAN handset revenues by geography, 2004-2008 60

Figure 20: Overall North American/EMEA VoWLAN handset revenues by device type, 2004-2008 61

Figure 21: Global enterprise WLAN deployment opportunities, 2004-2008 64

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