10Meters News Report

April 18, 2001 – What's hot in a tepid market? Wireless local area networks. According to IDC, WLAN equipment-sales revenue jumped an "incredible" 80 percent in 2000, breaking the $1 billion mark.

The Framingham, Mass., research firm, in a forecast update released today, says the momentum will continue and predicts the market will approach $3.2 billion by the end of 2005.

"Wireless LANs are being driven by the endless need for mobile connectivity both in and out of the enterprise," said Jason Smolek, research analyst for IDC's Enterprise Networks program. "Access points and bridges in airports, hotels, and convention centers are sprouting up all over the world from Stockholm to Singapore to New York."

The WLAN market is "particularly strong" in vertical industries, including education, retail, and healthcare, according to the IDC update. Growth is expected to hit the home and small/medium-sized business (SMB) segments along with the anticipated growth of broadband access.

IDC tapped Proxim as the leading WLAN vendor, accounting for 28 percent of shipments in 2000. Well-positioned: Symbol and Lucent, said IDC, with Cisco strong in infrastructure and 3Com emerging "as a force" in the home and SMB markets.

Despite the good news, IDC warns the industry needs to overcome "several obstacles," including standardization issues, partner education, security and reducing prices "so that WLANs are affordable for mainstream segments."

"In the end, the mobile revolution will be limited only by the extent to which individuals are willing to have access. How vendors deliver and package that access will be key to adoption everywhere," Smolek said.

For more information on "Unwiring the Network: Worldwide Wireless LAN Market Forecast Update," visit IDC at www.idc.com.