The outdoor Wi-Fi market has registered a CAGR of 14.24% during the forecast period, 2021-2026. The prevalence of home and office Wi-Fi networks, hotspots in public venues, and Wi-Fi at most commercial locations make connectivity easier.
- The deployment of smart infrastructure systems (based on IoT techniques and cloud computing) and data collection and information sharing are leading to higher usage at any given point in time. Thus, the deployment of outdoor Wi-Fi at different locations, such as public and commercial locations, makes data sharing easy. This is fueling the outdoor Wi-Fi market.
- According to Cisco, by 2022, nearly 59% of data traffic will be offloaded from cellular networks onto Wi-Fi and Wi-Fi will cover 51% of all the IPs traffic in 2022.
- Outdoor Wi-Fi solutions also have multiple applications in diverse end-user industries. For instance, it can provide a quality experience to guests in travel and hospitality services. While schools use outdoor public Wi-Fi for their students, municipalities offer city-wide wireless access for services, like a wireless meter reading. Even, police departments require outdoor Wi-Fi for data and video surveillance.
- Ericsson has estimated that by 2022, there will be approximately 29 billion connected devices globally, of which around 18 billion will be IoT enabled. Additionally, total public Wi-Fi hotspots (including homespots), worldwide, will grow significantly to 549 million by 2022. Therefore, the growing IoT devices will also require outdoor internet coverage fueling the growth of the studied market.
- However, technical glitches, like connection loss (many clients converging on a single access point), and regulations on power limits are some of the factors hindering the market during the forecasted period.
Key Market Trends
Increase in Demand for Public Wi-Fi Service is Expected to Drive the Market
- Public Wi-Fi hotspots have been launched at locations, like railway stations, metro stations, hotels, airports, cafes, markets, educational institutions, parks, and other public places.
- The Wi-Fi hotspot market is driven by the increasing penetration of smart devices across several countries. The increasing trend of social media and growing internet penetration with the increasing consumption of rich media content are the major factors driving the adoption of Wi-Fi technology and increasing the market share.
- Moreover, with the growing adoption of BYOD policies and enterprise mobility among organizations, the employees can work from home or any public place at any given point in time. With the BYOD deployments increasing, the need for connectivity of devices increased, and thus, the public hotspot helps in getting connected at a cheap rate.
- Additionally, the government initiatives are also supporting the market to grow. For example, the "Digital India" initiative, RailTel, a "Miniratna" enterprise of the government, has provided free high-speed Wi-Fi service through the program, RailWire. The organization covered more than 6,000 railway stations by May 2021. RailTel is one of the largest and fastest public Wi-Fi networks in the world.
Asia-Pacific to Witness the Fastest Growth
- The Asia-Pacific outdoor Wi-Fi market is expected to grow at a faster rate because of the presence of the two largest economies of the world i.e., China and India. The strong economic growth in the region, coupled with the information that the internet brings, interprets that the internet is poised for dynamic growth in the Asia-Pacific region. In lieu of that, the outdoor Wi-Fi market has a huge opportunity in this region.
- Additionally, the rising penetration of smartphones and formulation of favorable guidelines by the aviation authorities from countries, like India, for the use of in-flight Wi-Fi services inside an aircraft would further bid to boost the airborne wireless connectivity market over the next few years, resulting in the increase of outdoor wi-fi systems.
- Moreover, digitalization initiatives are undertaken by the governments of developing countries to augment the demand for outdoor Wi-Fi hotspots in the region. The government of India approved the launch of the PM WANI scheme in December 2020. The PM-WANI scheme aims to establish 2 million hotspots by the end of the year 2021. This initiative allows consumers to access Wi-Fi Hotspots of any of the partnering operators. Such an initiative is expected to boost the outdoor Wi-Fi market.
- The rapid growth in the IT infrastructure investment is encouraging foreign players to invest in public Wi-Fi. Further, with the growing trends of remote working and the emergence of public Wi-Fi solutions, the demand for outdoor Wi-Fi is expected to increase in the country. For instance, in September 2020, National Parks across Japan installed Wi-Fi-enabled workstations in hotels and at campsites to experience nature from 9 to 5, which have been deemed "workstations.“
The outdoor Wi-Fi market is fragmented and the competitive rivalry among existing competitors is high. Moving forward, acquisitions and collaboration of large companies with startups are expected, which are focused on innovation. Some of the key players in the market are Cisco Systems Inc. and Hewlett-Packard Enterprise Company, among others.
- Feb 2021: HFCL partners with Qualcomm Technologies for the development of Wi-Fi 6 Products. HFCL is strengthening its IO product portfolio of Wireless Solutions with the roll-out of Wi-Fi 6 products in addition to their existing Wi-Fi 5 Access Points (APs). These new products are targeted to serve global Carriers, Enterprises, and Internet Service Providers for delivering seamless data connectivity to the consumers.
- April 2020: Huawei held the Huawei Developer Conference in April 2020 in the University town of Shenzhen, and it utilized the Huawei CloudCampus 3.0 Solution to enable a reliable wireless network for the event and the university. They implemented AirEngine Wi-Fi 6 APs to extend the coverage distance within the campus. The APs provided full Wi-Fi 6 coverage for smart library applications.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Technology Snapshot
5.2 Market Drivers
5.2.1 Increasing Demand for Internet of Things and Penetration of Internet Enabled Gadgets
5.2.2 Growing Investments in Smart City Projects Globally
5.3 Market Restraints
5.3.1 Rising Privacy and Security Concerns
6.1.1 WLAN Controllers
6.1.2 Access Points
6.1.3 Wireless Hospot Gateways
6.2 By Service
6.2.1 Network Planning and Design
6.2.2 Installation and Support
6.3 By Implementation Model
6.3.1 Outdoor Hotspots
6.3.2 Private Networks
6.4 By End-user Industry
6.4.3 Logistics and Transportation
6.4.4 Travel and Hospitality
6.4.5 Public Utilities
6.4.6 Other End-user Industries
6.5.1 North America
6.5.4 Latin America
6.5.5 Middle East & Africa
7.1.1 Aerohive Networks
7.1.2 Airspan Networks
7.1.3 Alvarion Technologies (SuperCom)
7.1.4 Cisco Systems Inc.
7.1.5 Fortinet Inc.
7.1.6 Hewlett-Packard Company
7.1.7 Huawei Technologies Co. Ltd
7.1.8 Juniper Networks
7.1.9 Netgear Inc.
7.1.10 Nokia Siemens Networks
7.1.11 Ubiquiti Networks Inc.
7.1.12 Zebra Technologies
A selection of companies mentioned in this report includes:
- Aerohive Networks
- Airspan Networks
- Alvarion Technologies (SuperCom)
- Cisco Systems Inc.
- Fortinet Inc.
- Hewlett-Packard Company
- Huawei Technologies Co. Ltd
- Juniper Networks
- Netgear Inc.
- Nokia Siemens Networks
- Ubiquiti Networks Inc.
- Zebra Technologies