In 2024, Wi-Fi 7 and access to the 6 GHz band are expected to boost the wireless network market

2024-01-02 14:03:18

Scheduled for 2024, Wi-Fi 7 will bring major innovations to the wireless networking ecosystem. Access to the 6 GHz band will expand the available spectrum, and should introduce significant improvements in capacity and performance for various use cases.

Since the 2020 pandemic, the Wi-Fi market has seen significant growth, influenced by various factors such as widespread working from home and increased demand for expanded network connections. Additionally, the growing demand for connectivity for various devices such as smartphones, laptops, tablets and televisions has also played a key role in this growth.

However, after this euphoric period where sales increased, 2023 was the year of decline. According to ABI Research, the global Wi-Fi market has struggled, with third-quarter shipments down 13% year-over-year and revenue forecast to decline 8.1%. Causes include financial constraints, market saturation and implementation problems. However, this period could represent the lowest point, as the year 2024 looks promising.

Higher speeds and better management of network resources

The stabilization of markets, the easing of industrial barriers and the arrival
Wi-Fi 7 and Standard Power 6 GHz should revive demand and create new opportunities. According to ABI Research, these trends will drive 8.0% compound annual growth (CAGR) in WLAN infrastructure shipments between 2023 and 2030, with a total increase of 71.3%. The evolution of wireless networking technologies, such as Wi-Fi 6/6E and Wi-Fi 7, opens new possibilities for private networks, providing higher speeds and better management of network resources.

“The Wi-Fi infrastructure market in 2024 will look significantly different than in previous years,” said Andrew Spivey, principal analyst at ABI Research. The growing back-to-office trend will drive demand for enterprise Wi-Fi, while increased competition between operators will boost the premium residential Wi-Fi market. Infrastructure providers will need to recognize and respond to these developments. Those targeting businesses will need to meet the growing density and performance needs of modern businesses, while in the residential sector they will need to adapt to a contracted retail market, where opportunities are concentrated at the high end. »

Limited access to the 6 GHz band in Europe

Wi-Fi 7, planned for 2024, will bring major innovations to the wireless communications infrastructure ecosystem. Access to the 6 GHz band is expected to expand available spectrum, addressing capacity challenges, and features such as Multi-Link Operation (MLO) improving spectral efficiency, helping to overcome interference issues in environments with high density of wireless networks.

These new features will also allow Wi-Fi to serve new applications that were previously inaccessible. However, the introduction of Wi-Fi 7 will not be without challenges. Many regions still do not have unlicensed access to the 6 GHz band, limiting the performance gains expected from this technology. In France, the government published a decree in the Official Journal authorizing the use of the 6 GHz band for the Wi-Fi 6E standard, while imposing certain limitations on the width of the spectrum.

The establishment of the 6 GHz band aims to relieve congestion on the 2.4 GHz and 5 GHz bands, which are often saturated, particularly in urban areas. But, unlike the United States where the 6 GHz band extends from 5925 to 7125 MHz (i.e. 1200 MHz), in Europe, use is limited to frequencies between 5945 MHz and 6425 MHz, which represents a band of 480 MHz. This restriction could limit the decongestion effect of the 2.4 GHz and 5 GHz bands in Europe. Additionally, the cost of Wi-Fi 7 is significantly higher than Wi-Fi 6, which could pose a barrier to adoption in low average selling price (ASP) markets.

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