Australian End-User Device Growth Continues to Fuel WLAN Market in Q3 2013, Says IDC
15 Jan 2014
Sydney, Australia, January 15, 2014 – IDC's Asia/Pacific Quarterly Wireless LAN (WLAN) Tracker Q3 2013 shows a fourth consecutive quarter of overall WLAN hardware growth in Australia.
While still rising, yearly growth for the entire market slowed considerably, from 41% in Q2 to 26% in Q3 2013. The table below shows market shares and growth for the three main WLAN market segments quarter-on-quarter (QoQ) and year-on-year (YoY):
Enterprise deployments have kept growing on the back of proliferation of mobile devices. Bring Your Own Device (BYOD) and the more recent trend to Choose Your Own Device (CYOD) continued to drive the enterprise market.
Research indicates that 80% of all tablets currently being used in Australia are Wi-Fi only devices. In addition to that, more than 7.5 million people used their mobile phones to connect to the internet in 2013. Moreover, the IDC Asia/Pacific Enterprise Mobility Maturity Model revealed that close to three-quarters of Australian companies are planning to increase their mobility spend in 2014. Together, these statistics indicate good growth potential for the enterprise WLAN market.
Fewer consumer routers were sold in Q3 2013. Vendors attribute this dip in the market to a seasonal slowing in the retail sector. Q4 results are expected to improve due to the customary gain in momentum for retail at the year end.
Service Provider (SP) WLAN deployments remained negligible as telcos maintained an aversion for use of wireless access points to supplement their 3/4G infrastructure. Vendors are pushing to have a similar SP Wi-Fi adoption rate as that of New Zealand. While their efforts will need time to take effect, IDC sees good potential for WLAN deployments in the Australian SP landscape.
Social networking, rich media, voice and video communication continue to fuel the need for wireless connectivity in Australia. Greater traction is being seen in public facing Wi-Fi, such as with stadiums and city councils. These areas are tipped to drive significant growth moving forward. Government, retail and mining remain the dominating sectors deploying WLAN equipment in Q3.
Cisco continued to dominate the enterprise market in Q3, accounting for more than 55% of local WLAN deployments. “While the current market statistics are heavily skewed against the challengers, the arrival of 802.11ac represents an opportunity for Aruba, HP, Meru, Xirrus, Ruckus, Motorola and Aerohive to change the status quo through more competitive products and more deliberate customer engagement," says Tafadzwa Marasha, Networking Analyst at IDC Australia.
Analytics, 802.11ac and public Wi-Fi were the main market themes identified by IDC in Q3 2013. IDC saw unparalleled integration of analytic engines into WLAN offerings. A number of vendors used this to differentiate their offerings in an increasingly customer experience focused environment.
802.11ac WLAN devices have seen a significant uptake in demand. Revenue from these devices now makes up 11% of the market following only one full quarter of sales. IDC forecasts that 802.11ac will grow at a similar pace to its predecessor, 802.11n.
Lastly, IDC has started seeing more public facing Wi-Fi installations aiming to provide widespread connectivity for customers and monetization opportunities for network suppliers. An emerging challenge for suppliers is simplifying access to their networks to provide a more ubiquitous experience for customers. This presents an opportunity for technologies like Passpoint/Hotspot 2.0 to take centre stage and alleviate access issues locally and beyond country borders. While this is not something that has gained momentum locally, IDC sees a good case for the use of Passpoint to serve network operator and customer interests alike.
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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com or www.idc.com.au.
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