Global News

February 14, 2003
802.11b drives Wi-Fi shipments in 2002


UNITED STATES -- The year 2002 proved to be a stellar year for volume growth of wireless LANs, driven by the increasingly cheap and reliable 802.11b, according to In-Stat/MDR. The high-tech market research firm reported that business Wi-Fi hardware shipments are expected to rise 65 percent annually in 2002, to 11.6 million units and home shipments are expected to increase by a very healthy 160 percent, to 6.8 million units. However, fast and furiously falling prices for 802.11b equipment are expected to cause total market revenues to grow by only 23 percent, from 1.8 billion in 2001 to $2.2 billion in 2002.

Security continued to be the most talked about issue on the business side in 2002, while the Achilles heel of the home market remained multimedia support. In the year ahead, the continued growth and evolution of dual-mode 2.4/5GHz capable equipment, Intel's ability to push outs its Centrino mobile technology, the shift toward 802.11g as the preferred 2.4GHz WLAN technology, and the advent of new enterprise infrastructure technology, will all shape the development of this market.

In-Stat/MDR also found that:

  • Many new types of hardware shipped in 2002: 802.11a NICs and APs; dual-mode 2.4/5GHz capable APs; dual-mode 2.4/5GHz NICs; and in late 2002, the first trickle of pre-standard 802.11g products powered by Broadcom silicon.
  • Although verticals continued to sustain the bulk of high-end business purchases, low-end infrastructure equipment flowed into an increasing number of small businesses, as well as into remote offices and small departments of large and medium businesses.
  • The increasing rate of embedded 802.11b into laptops greatly increased, from 2 percent of NIC units shipped to businesses in 2001, to an expected 14 percent of the total business client shipments in 2002.
  • Brisk retail and e-tail sales of low-end router/AP devices, along with NICs, drove the small business and home/SOHO worldwide market growth. Retail outlets and Web sites aggressively provided rebates on Wi-Fi equipment.

Contact:
Instat/MDR
Web: www.instat.com


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