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Tue 20 Aug 2002 04:00 AM

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WLAN market continues to grow in 2002

The increasing number of wireless local area network (WLAN) deployments spurred WLAN shipments to grow by15% during the second quarter of 2002, according to In-Stat/MDR.

The increasing number of wireless local area network (WLAN) deployments spurred WLAN shipments to grow by15% during the second quarter of 2002, according to In-Stat/MDR. However, the healthy growth in shipments did not extend to revenues, which fell by 1% during the quarter. The research group cites the “rapid commmoditisation of 802.11b equipment market” as the reason for the imbalance between shipment and revenue growth.“Although the slightly negative revenue growth is troubling for WLAN equipment manufacturers across the board, the falling margins have both driven increased 802.11b volume shipments, as well as spurred vendors to quickly roll out new, high-speed products,” says Gemma Paulo, senior analyst, In-Stat/MDR. “This is not an industry that is lacking in innovation, as even the low-end vendors are finding ways to differentiate their WLAN products, this is a very good sign that there is still a significant amount of momentum in this market,” she adds. While Cisco maintained its lead in terms of revenue, Linksys edged ahead of the market in terms of units shipments. The small business and home specialist also grabbed 5% of the 802.11a market, despite only entering the market late in the second quarter. According to In-Stat, the home market is the major driver behind the growth in the WLAN market. Shipments in this sector grew by 20% during Q2, encouraged by the popularity of low-cost wireless gateway products, such as combo AP and router devices.

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