BelAir Networks (Ericsson), Cisco, and Ruckus Wireless account for more than two-thirds of 2011 carrier Wi-Fi equipment revenue in 2011.
Revenue for carrier Wi-Fi equipment -- including mobile Wi-Fi access points, Wi-Fi hotspot access points, and Wi-Fi hotspot controllers -- grew 35 percent in 2011 from 2010.
Mobile Wi-Fi access points are expected to experience compound annual growth rate of 86 percent through 2016 as mobile operators seek a closer integration of Wi-Fi with the mobile network.
Infonetics forecasts the global carrier Wi-Fi equipment market to grow in the high double-digit percents annually at least through 2016, when it will hit $2.1 billion.
New players will enter the market, disrupting early market share standings, and, with growing demand for Wi-Fi integrated base stations from mobile operators, carrier Wi-Fi market share could shift toward the mobile infrastructure vendors.
The carrier Wi-Fi equipment market has grown since 2007, initially driven by demand from mobile operators expanding their 3G and 4G deployments with Wi-Fi hotspot services. The new growth driver is mobile operators deploying carrier Wi-Fi to offload a portion of their mobile data traffic.
Additionally, fixed-line operators and ISPs continue to deploy Wi-Fi to extend Wi-Fi hotspot services, cable and DSL operators use Wi-Fi as an enhancement for their broadband services, and many operators will be upgrading their existing access points to new Wi-Fi standards, such as the forthcoming 802.11ac protocol.
"Our many recent conversations with mobile operators and equipment vendors validate our view that mobile operators are hot for hotspots," said Richard Webb, directing analyst for microwave, mobile offload, and mobile broadband devices at Infonetics Research.