Enterprise Wireless LAN Market Expands, Driven by Wi-Fi 7 Adoption
The enterprise class Wireless LAN (WLAN) market recorded substantial growth in Q2 2025, with revenues advancing 16% year-over-year. This expansion is largely attributed to the accelerated adoption of Wi-Fi 7, influenced by strategic pricing from key market players like Cisco, alongside increasing demand for AI-driven networking solutions and recurring license revenues.
Enterprise Wireless LAN Market Sees Growth Driven by Wi-Fi 7 Adoption
Market Overview: Strong Rebound in WLAN Sector
The enterprise class Wireless LAN (WLAN) market demonstrated significant growth in the second quarter of 2025, with revenues rising 16% year-over-year. This notable expansion marks the second consecutive quarter of double-digit growth, signaling a strong rebound for the sector after a period of slower activity in 2024. The strong performance is largely propelled by the accelerated adoption of Wi-Fi 7 technology and increased demand for advanced networking solutions.
Catalysts for Growth: Strategic Pricing and AI Integration
A pivotal factor in the market's current trajectory is the strategic pricing by industry leaders, particularly Cisco Systems Inc. (CSCO). According to a report from Dell'Oro Group, Cisco has positioned its average Wi-Fi 7 access point (AP) price significantly below the initial price point of Wi-Fi 6E. This aggressive pricing strategy has acted as a catalyst, encouraging a swifter market transition to the latest Wi-Fi standard.
> "Cisco has kept its average Wi-Fi 7 AP price significantly below the price of Wi-Fi 6E when it was first introduced. This was a catalyst for adoption in the second quarter, encouraging the market transition to the latest Wi-Fi standard," said Siân Morgan, Research Director at Dell'Oro Group.
Beyond hardware, license revenues are playing a crucial role in overall market growth. Specifically, AI Operations features are becoming an increasingly vital component of IT vendors' offerings. Enterprises are showing a growing willingness to pay recurring fees for licenses that enable these valuable AI-fueled capabilities.
> "License revenues continue to play a big part in the market growth. AI Operations is becoming an important part of IT vendors' offers," added Morgan. "More enterprises are paying a recurring fee for licenses that enable highly valuable AI-fueled features."
Geographically, North America emerged as a leading region, expanding by over 20%. Concurrently, Public Cloud-managed WLAN solutions experienced faster growth than the broader market, a trend attributed to the accumulating nature of recurring license fees associated with such services.
Company Performance and Market Dynamics
While the overall market experienced robust growth, individual company performances varied. Both CommScope (COMM) and Ubiquiti (UI) reported substantial WLAN revenue growth exceeding 70% year-over-year, indicating strong competitive positioning within specific segments.
Cisco, a key player in the Networking Industry, recently announced its fiscal fourth-quarter earnings on August 13, 2025. The company surpassed Wall Street expectations with an earnings per share (EPS) of $0.99 against a forecast of $0.98, and reported revenue of $14.7 billion, slightly above the anticipated $14.62 billion. Total revenue saw an 8% year-over-year increase, driven by strong demand for AI infrastructure and network upgrades. Despite these positive results, Cisco's stock experienced a modest decline of 1.42% to $71.38 during regular trading hours, though it saw a slight uptick in after-hours trading, approaching its 52-week high. The company's Wi-Fi 7 product line saw triple-digit year-over-year growth, underscoring the success of its adoption strategy. Cisco also reported a 6% increase in Total Remaining Performance Obligation (RPO) to $43.5 billion and a 30% increase in operating cash flow to $14.2 billion compared to fiscal year 2024.
Broader Context and Future Outlook
The current surge in the WLAN market is part of a broader rebound in the global campus switch market, which is valued at $15 billion and projected to grow at a Compound Annual Growth Rate (CAGR) of 12% through 2033. This growth is significantly driven by Wi-Fi 7 adoption and the escalating demands of AI infrastructure and hybrid work environments. Wi-Fi 7 orders alone surged 300% sequentially in Q3 2025, demonstrating strong market momentum. The U.S. Wi-Fi 7 chipset market is anticipated to grow at a CAGR of 14.1% from 2024 to 2030, outpacing older Wi-Fi segments. The broader enterprise WLAN segment is expected to sustain growth, with a projected CAGR of 20.0% through 2035.
While Cisco remains a dominant force, its reclassification as a 'Challenger' in Gartner's 2025 Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure highlights an evolving competitive landscape. Competitors such as Juniper Networks (with its Mist AI engine) and HPE (Aruba) (with its automated wired-wireless fabric solutions) are gaining traction by leveraging AI-native platforms and energy-efficient designs. Additionally, the IT equipment sector has experienced a flurry of acquisition activity, which is expected to begin impacting the WLAN market in 3Q 2025.
For investors, the Wi-Fi 7 driven rebound presents opportunities in vendors that demonstrate strong AI and security integration. As enterprises prioritize AI, IoT, and cloud readiness, companies offering robust AI-native platforms and energy-efficient solutions are well-positioned for future success.
