Wireless local-area network (WLAN) equipment shipments experienced triple-digit growth in 2002 but there was no corresponding increase in revenues, according to new figures from Gartner Dataquest.
The research company said that global WLAN equipment shipments totalled 19.5 million units last year, representing an increase of 120% from 2001 shipments of 8.9 million units. However, the falling cost of equipment ensured that end-user spending rose by just 29% in 2002.
“As one of the few growth areas in network equipment, the wireless LAN market is attracting a large number of vendors. The resulting competition is forcing prices down, benefiting end-users by creating a wide choice of low-cost products,” said Andy Rolfe, principal analyst at Gartner.
It is forecast that by 2006, the worldwide WLAN market will be worth $2.7 billion (see Overdue Growth For WLAN Hardware Market).
