TDM and VOIP

March 13, 2006

By Matthew Friedman Networking Pipeline

Despite a small drop in the at the end of last year, revenues from worldwide sales of local area network (WLAN) equipment showed healthy growth in 2005, according to a new report from Infonetics Research.

Revenues were up 10% overall in 2005, though there was a 5% quarterly dip in the fourth quarter. Unit shipments were up 39% in the same period, to top 25 million. WLAN switch and controller revenues grew 93% and shipments jumped 154%, Though WLAN switch and controller sales currently account for 19% of revenues, compared to 81% for access points, the report notes that that proportion will rise to 44% by 2009.

Infonetics expects the growth trend to continue, with WLAN equipment revenues reaching $3.8 billion by 2009. Much of the growth will be driven by the enterprise market, which the firm says will expand 120% between 2005 and 2009.

"The enterprise segment is where the action is," Infonetics Research analyst Richard Webb said in a statement. "Organizations of all sizes are increasingly mobile and data-reliant, so the need for network access while on the move is crucial, driving growth of WLAN switches and controllers in particular, which achieve double-digit annual revenue growth through 2009."

Cisco was the overall WLAN equipment revenue leader last year, followed by Symbol and 3Com. The company also held a comfortable lead in WLAN switch and controller revenues, also ahead of Symbol.