Enterprise Wireless LAN Market to Explode

Call For Mobility, Reduced Costs and Higher Speeds Contribute to Rapidly Growing Market

According to a new study by Cahners In-Stat Group, the enterprise WLAN market will expand at a 25% compound annual growth rate from 2000 to 2004, reaching $2.2 billion in worldwide sales.

The increasing demand for mobile solutions from enterprise users, combined with the widespread support for a new standard for higher speed wireless networking, will drive this market to wider acceptance from its current niche market today.

“Wireless LANs will become a non-negotiable element of the enterprise network," states Michael Wolf, Senior Analyst with Cahners In-Stat's Voice and Data Group. "Enterprise MIS managers are finally getting the speeds they want and the interoperability they demand, which will ultimately translate into strong sales."

Recent movements by large, established networking vendors has added additional momentum to the market. Cisco's acquisition of Aironet served notice that the largest networking companies see the Wireless LAN as a necessary compliment to the wired infrastructure. Other vendors such as Lucent, 3Com, and Nortel have begun to ship 11 Mbps wireless LAN products.

Further spurring the market is the lower costs of equipment due to advances in silicon processes and integration. Vendors such as Intersil and Lucent continue to offer more integrated silicon, driving down the cost of WLAN hardware. Cahners In-Stat Group believes the ultimate beneficiary will be the end consumer.

“From yesterday's market paralyzed by $1000 NICs, silicon innovation and standards development are driving down the cost of Wireless LANs, enabling phenomenal growth in the new millenium." said Gemma Paulo, Research Analyst with Cahners In-Stat Group.

The report, “Enterprise Wireless LAN Market Analysis,” #LN0001WL, discusses the enteprise Wireless LAN market and analyzes how this market will evolve over time, due to new technologies and standards. The report includes market shares, five years forecasts by technology and comprehensive vendor profiles.

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