Market Insight

RESEARCH NOTE - Nearly Flat H1 2016 for Carrier WiFi Equipment Market; Brocade and Huawei Neck and Neck

November 09, 2016

Richard Webb Richard Webb Director – Research and Analysis, Service Provider Technology

Want to learn more?
Have an expert contact you.

Following is information and insight from IHS Markit about our H2 2016 Carrier WiFi Equipment Biannual Market Tracker, which includes data for the half-year ended June 30, 2016. 

Bottom Line

  • The global carrier WiFi equipment market rose just over a percent in the first half of 2016 (H1 2016) from the second half of 2015 (H2 2015)
  • In H1 2016, the majority of carrier WiFi equipment revenue was from mobile service providers, with large tier-1 mobile network operators (MNOs) such as China Mobile driving volume
  • Brocade and Huawei were in a virtual tie for the carrier WiFi revenue market share lead in H1 2016

Our Analysis

Globally, carrier WiFi equipment revenue reached $306 million in H1 2016, growing 1.3 percent over H2 2015. Demand for bandwidth continues to push the market forward, but modest vendor shipments and small cell adoption—combined with unit price erosion—tempered revenue growth in the first half of the year. We expect revenue growth to improve in the second half of 2016—but still hover in the single digits—owing to an acceleration in the adoption of 4G dual-mode small cell and WiFi access points.

Access points accounted for 82 percent of carrier WiFi gear revenue in H1 2016, with WiFi controllers comprising the remaining 18 percent. Mobile service providers accounted for the bulk of revenue (45 percent), followed by fixed-line service providers (35 percent) and wireless internet service providers (19 percent).

Subscriber identity module (SIM) access points have rapidly overtaken WiFi hotspot access points as the highest-volume carrier WiFi access point product segment, and the 802.11ac protocol made up 83 percent of carrier WiFi access point revenue in H1 2016.

In terms of geographical revenue breakdown, Asia Pacific led Europe, the Middle East and Africa (EMEA) by just 1 percent. North America was next, trailed distantly by the Caribbean and Latin America (CALA).

Brocade (Ruckus Wireless) was the carrier WiFi equipment revenue market share leader in H1 2016, just marginally ahead of Huawei. Cisco came in third, followed by Hewlett Packard Enterprise (HPE) and Nokia.

Carrier WiFi Report Synopsis

The IHS Markit biannual carrier WiFi equipment report tracks WiFi equipment deployed by operators in public spaces for wireless internet access. It provides worldwide and regional market size, vendor market share, forecasts through 2020, analysis and trends for WiFi hotspot controllers and carrier WiFi access points (WiFi hotspot access points, SIM-based WiFi access points, dual-mode 3G/WiFi picocells and metrocells, and dual-mode 4G/LTE/WiFi mini eNodeBs).

Geography
Global
Research by Market
Mobile & Telecom
Category
Mobile Networks
Share facebook Twitter Google Plus Linked In Add This Contact Us