Dell’Oro finds Wi-Fi 7 gaining traction as enterprise WLAN revenue rises and AI reshapes vendor strategies
The enterprise wireless LAN (WLAN) market is off to a strong start in 2025, with Dell’Oro Group reporting an 11% year-over-year revenue increase in Q1 — driven by growing adoption of Wi-Fi 7 and a shift in vendor strategies as the Wi-Fi 6E era nears its end.
For the first time, all major WLAN vendors offered enterprise-class Wi-Fi 7 gear in the quarter, according to Dell’Oro Research Director Siân Morgan. While many manufacturers have been managing surplus Wi-Fi 6E inventory, the balance is now tilting toward newer, more capable Wi-Fi 7 equipment.
“Some manufacturers have been dealing with large inventories of Wi-Fi 6E, and have been prioritizing shipments of the older technology, which still has strong adoption,” Morgan noted. “Now we’re coming to the end of Wi-Fi 6E growth phase, the market will shift over to Wi-Fi 7 in larger numbers.”
Wi-Fi 7: Fast uptake, strong performance, lower prices
Dell’Oro’s report found that Wi-Fi 7 accounted for 12% of enterprise WLAN units shipped worldwide in Q1 2025. That’s a noteworthy jump for a technology still in early commercialization — and it aligns with broader market momentum. As previously reported by RCR Wireless News, Wi-Fi 7 is on a faster adoption curve than Wi-Fi 6 or 6E, with chipset providers like MediaTek pushing aggressively into the broadband and consumer markets.
On the enterprise side of things, recent trials conducted by the Wireless Broadband Alliance (WBA), in collaboration with AT&T, CommScope (RUCKUS Networks) and Intel, have demonstrated Wi-Fi 7’s significant performance enhancements over previous generations. These real-world tests showcased nearly double the throughput of Wi-Fi 6E at 5 GHz using 40 MHz channels and sustained more than 1 Gbps throughput at 40 feet with 160 MHz channels on the 6 GHz band. Such results underscore Wi-Fi 7’s readiness to support demanding applications like immersive XR, cloud computing, AI-driven automation and industrial IoT.
Wi-Fi 7’s appeal is grounded in technical upgrades including multi-link operation (MLO), 320 MHz channel bandwidth and lower latency. These features are attractive not only for enterprise networks but also for homes and small businesses needing higher capacity and better multi-device support.
Yet, Dell’Oro found that average selling prices for Wi-Fi 7 remain lower than for Wi-Fi 6E gear, suggesting that early growth is being driven by value-oriented vendors rather than high-margin enterprise suppliers. CommScope, Ubiquiti and Extreme Networks were singled out as the fastest-growing vendors in the enterprise WLAN space this quarter.
North America leads, AI shapes WLAN future
While global shipments grew, Dell’Oro observed a pronounced surge in demand from North America, with other regions lagging behind. This regional imbalance may reflect earlier enterprise refresh cycles in the U.S. and more aggressive rollouts from North American service providers.
Vendors are also banking on artificial intelligence and machine learning to differentiate their WLAN offerings. According to Dell’Oro, AI models are increasingly being used for cross-domain troubleshooting, front-line support tools and dynamic dashboards — all of which could drive future recurring software revenues.
“Vendors are putting development efforts into AI models to enhance WLAN operations,” said Morgan. “We expect these developments to pay off.”
Market distractions: HPE-Juniper deal faces legal scrutiny
One cloud on the horizon is the U.S. Department of Justice’s (DoJ) ongoing effort to block Hewlett Packard Enterprise’s proposed $14 billion acquisition of Juniper Networks. The case is set to go to trial on July 9, 2025, with HPE reaffirming its commitment to the deal.
The outcome could have ripple effects across the enterprise networking space, particularly if the deal’s collapse reshuffles vendor strategies or dampens investor confidence in further consolidation.
Looking ahead
With Wi-Fi 7 making rapid inroads, enterprise buyers are increasingly weighing next-generation capabilities over legacy investments. The slowdown in Wi-Fi 6E adoption, surging North American demand and an AI-fueled evolution in WLAN operations all point toward a dynamic year ahead.
As the enterprise connectivity landscape continues to shift, vendors with strong cloud and AI strategies — and those aligned with Wi-Fi 7’s value curve — may hold the upper hand.
