WLAN sees record growth, expected to make $5 billion by year end

The wireless LAN (WLAN) market has grown 20 percent in the first quarter of 2010 compared to the same period in previous years, with forecasts expecting WLAN sales to reach $5 billion by the end of the year, according to a new report by Dell‘Oro Group.

The growth comes after a very weak year in 2009, which saw first quarter revenue falling by 15 percent. 2010 has brought a lot to be optimistic about as the WLAN market is on the rise again, a trend that is echoed in other technology sectors, including PC sales, which also saw an excellent first quarter this year.

Much of the WLAN sales growth is attributed to the enterprise sector, which has been growing steadily and peaking in the first quarter of this year.

“Enterprise market revenues grew at twice the rate of the overall market and have now risen 5 straight quarters, showing that WLAN continues to grow in importance to businesses,” said Loren Shalinsky, Senior Analyst of WLAN research at Dell’Oro Group. 

The report highlights a number of WLAN vendors who have not only had growth in the first quarter of this year, but managed to break previous revenue records as a whole. These companies were Alcatel-Lucent, Aruba, Meru, Motorolo, Netgear, and Trapeze.

“First quarter enterprise WLAN revenues are traditionally the low point of the year, as we have seen every year since we started tracking this market in 2002. We forecast that the record enterprise revenues during the first quarter will help propel the overall market to over $5 billion this year, easily surpassing the previous annual high in 2008,” Shalinsky added.