Study: Wireless LAN market to exceed $4 billion

Falling prices and new technologies that continue to make wireless LANs speedier will bring a surge in corporate use with total revenue in that market reaching nearly US$4.6 billion by 2005, according to new research from Cahners In-Stat Group.

Wireless LANs will be pushed, as in the past, by "Wi-Fi" (wireless fidelity) products, including IEEE (Institute of Electrical and Electronics Engineers) products using the 802.11b and 802.11g standards, the Scottsdale, Arizona-based market researcher said.

Wares from low-cost, high-volume vendors will push the market, with prices falling substantially, and quickly, next year. Wireless LAN products will become more prevalent outside of North America and that will further spur the market, Cahners In-Stat found.

Next year, the growth rate for end-use revenue in the wireless LAN market will go up because 5GHz products will be introduced, the researcher said.

The new research report also finds a couple of hurdles related to wireless LAN growth. The main obstacle is that wireless networks don't perform as well as standard corporate network hardware and software. Also, IT professionals don't yet see that wireless LANs are a basic necessity.

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