2000 Enterprise Wireless LAN Market Update

This market alert is drawn from the report, "2000 Enterprise Wireless LAN Market Update," which includes an explanation of WLAN technologies and architectures. It also features an analysis of market drivers and hurdles, an examination of WLAN standards and interest groups, and a look at WLAN silicon providers. The report concludes with a study of WLAN equipment makers' market shares and equipment markets forecasts broken down into three categories: NICs, Access Points, and Bridges.

The enterprise wireless LAN (WLAN) market took off in 2000, finally gaining acceptance as a legitimate enterprise technology. With the release of the Wi-Fi (802.11b) products in late 1999 and 2000, from a number of recognized and trusted network equipment providers, WLAN gear was pushed into the wider acceptance that has eluded it for the past ten years. Cahners In-Stat expects that the market will experience robust growth throughout the forecast period, as enterprise MIS managers finally find the higher speeds, interoperability and lower prices that previously had been missing from this once niche market. The market will grow from $624 million in 1999 to $3 billion in 2002. As defined here, the enterprise WLAN equipment market is composed of NICs, access points and bridges.

Table of Contents

Executive Summary

Methodology

Introduction to Wireless LANs

Infrared

UHF Narrowband

Spread Spectrum

Down the Road

Two Choices: Frequency Hopping or Direct Sequence

Basic WLAN Architectures

Wireless LAN Market Drivers and Hurdles

Wireless LAN Standards and Interest Groups

IEEE 802.11

802.11b

802.11a

HiperLAN/1

HiperLAN/2

Wide Band Frequency Hopping

Bluetooth

HomeRF

WLAN Silicon Providers

Enterprise WLAN Market Shares

Frequency Hopping

Direct Sequence

Worldwide Enterprise Wireless LAN Forecast

WLAN NIC Market

WLAN Access Point Market

Enterprise WLAN Building-to-Building Bridge Market

List of Tables

Table 1. Enterprise WLAN End-Use Sales (US$M)

Table 2. Wireless LAN Timeline

Table 3. WLAN Industry Organization Matrix

Table 4. Lucent's WLAN OEM Customers

Table 5. Intersil's WLAN OEM Customers

Table 6. Frequency Hopping Enterprise WLAN NIC Unit (k) Market Shares

Table 7. Frequency Hopping Enterprise WLAN NIC End-Use Sales ($k) Market Shares

Table 8. Frequency Hopping WLAN Enterprise Access Point Unit (k) Market Shares

Table 9. Frequency Hopping WLAN Enterprise Access Point End-Use Sales ($k) Market Shares

Table 10. Direct Sequence Enterprise WLAN NIC Unit (k) Market Shares

Table 11. Direct Sequence Enterprise WLAN NIC End-Use Sales ($k)

Table 12. Direct Sequence Enterprise WLAN Access Point Unit (k) Market Shares

Table 13. Direct Sequence WLAN Enterprise Access Point End-Use Sales ($k) Market Shares

Table 14. Worldwide Enterprise WLAN Annual Unit Forecast 1998-2002 (000's)

Table 15. Enterprise WLAN Annual End-Use Sales 1998-2002 (US$M)

Table 16. Enterprise WLAN NIC Forecast by Transmission Type (000's)

Table 17. WLAN NIC Revenue Forecast by Transmission Type

Table 18. Enterprise WLAN AP Unit Forecast by Transmission Type (000's)

Table 19. Enterprise WLAN NIC End-Use Revenues by Transmission Type

Table 20. Enterprise WLAN AP End-Use Revenues ($M) by Transmission Type

Table 21. Enterprise WLAN Bridge Unit Forecast (000's)

Table 22. Enterprise WLAN Bridge End-Use Sales Forecast (US$M)

List of Figures

Figure 1. Frequency Hopping vs. Direct Sequence

Figure 2. Typical WLAN Configuration

Figure 3. Roaming Between APs

Figure 4. WLAN Technology Matrix

Figure 5. WLAN Technology Time Line

Figure 6. Frequency Hopping Enterprise WLAN NIC Unit Market Shares (1H00)

Figure 7. Frequency Hopping Enterprise WLAN Access Point Unit Market Shares (1H00)

Figure 8. Direct Sequence Enterprise WLAN NIC Unit Market Shares (1H00)

Figure 9. Direct Sequence Enterprise WLAN Access Point Units Market Shares (1H00)

Figure 10. Enterprise WLAN Forecast 1998-2002 (Units, 000's)

Figure 11. Enterprise WLAN End-Use Sales 1998-2002 (Annual, US$M)

Figure 12. WLAN NIC Unit Forecast by Transmission Type (000's)

Figure 13. Enterprise WLAN Access Point Unit Forecast by Transmission Type (000's)