Gartner Says Worldwide Wireless LAN Equipment Shipments Experienced Triple-Digit Growth While Prices Continued to Fall in 2002
STAMFORD, Conn., June 16, 2003 — Worldwide wireless local-area network (LAN) equipment shipments experienced triple-digit growth in 2002, but revenue results did not show the same explosive growth rates, according to Gartner, Inc. (NYSE: IT and ITB).
Worldwide wireless LAN equipment shipments totaled 19.5 million units in 2002, a 120 percent increase from 2001 shipments of 8.9 million units. However, end-user spending increased just 29 percent in 2003 because of falling prices on equipment.
"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 for Gartner's worldwide telecommunications and networking group.
Buoyed by its strength in the wireless LAN adapter and wireless LAN broadband gateway segments, Linksys overtook Cisco Systems as the leading wireless equipment vendor in 2002, accounting for 14.1 percent of end-user spending (see Table 1). Cisco slipped to the No. 2 position with a 13.9 percent market share.
Table 1
Top 5 Worldwide Wireless LAN Equipment Vendors' by End-User Spending for 2002 (Millions of Dollars)
Company
2002 Spending
2002 Market Share (%)
2001 Spending
2001 Market Share (%)
Growth (%)
Linksys
306.4
14.1
142.7
8.4
147.0
Cisco
302.9
13.9
324.8
19.2
-6.7
Buffalo Technology
200.7
9.2
172.5
10.2
16.3
D-Link
174.5
8.0
89.2
5.3
95.6
Proxim
172.3
7.9
131.4
7.8
31.1
Others
1,021.1
46.9
829.3
49.1
23.1
Total
2,177.7
100.0
1,689.9
100.0
29.0
Source: Gartner Dataquest (June 2003)
Linksys also led the worldwide wireless LAN industry based on unit shipments in 2002 with 14.6 percent of the market (see Table 2). D-Link was the No. 2 vendor with a 9.6 percent market share, but the task for other vendors to attempt to take a leadership position in the market became much more difficult in 2003.
In March of 2003, Cisco announced an agreement to acquire Linksys, which will result in the company extending its lead in the market both on a revenue and shipment basis in 2003. "In acquiring Linksys, Cisco is re-entering the high-growth consumer and SOHO network markets. We expect Cisco to expand the Linksys distribution channel to include telecom service providers that want home networking products to bundle with their broadband offerings," Rolfe said.
Table 2
Top 5 Worldwide Wireless LAN Equipment Vendors' by Unit Shipments for 2002 (Thousand of Units)
Company
2002 Shipments
2002 Market Share (%)
Linksys
2,860.0
14.6
D-Link
1,881.8
9.6
Buffalo Technology
1,857.9
9.5
Symbol Technologies
1,762.0
9.0
Proxim
1,741.0
8.9
Others
9,495.4
48.5
Total
19,598.1
100.0
Source: Gartner Dataquest (June 2003)
"Demand for the benefits of mobile access to corporate applications will continue to drive strong growth in the sales of wireless LAN equipment. The market requires multi-vendor compatibility, since wireless LAN adapters are being increasingly integrated into new mobile PCs," said Rolfe. "However, the standards are as yet incomplete, particularly with regard to security. End-users and wireless LAN service providers should not rely on overly proprietary features, but should employ standard wireless LAN networks and provide security at higher layers."
Additional statistics are available in the Gartner Dataquest Market Statistics report Wireless LAN Equipment: Worldwide, 2002. This report provides market size and the leading manufacturer's shares of shipments and end-user spending on a worldwide basis. This report can be purchased on Gartner's Web site.
This analysis is provided by Gartner's worldwide Telecommunications and Networking group. This group provides an analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Telecommunications Focus Area at www.gartner.com/telecom-mkt. To purchase the report or subscribe to Gartner programs, call 408-468-8000 or go to www.gartner.com.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
