Outdoor Wi-Fi: Asia Pacific to Lead Global Market With Higher Smartphone Penetration

  • Posted by Pragati P
  • June 13, 2016 9:59 AM BST
As the world witnesses an influx of smartphones, there is a growing need for outdoor Wi-Fi to use the technological advantages these devices provide. Owing to this primary factor, the outdoor Wi-Fi market has been celebrating unprecedented growth in recent years. Since most of the smartphones, notebook computers, netbooks, laptops, tablets, gaming consoles, and handhelds are equipped with Wi-Fi, there is no additional cost of enabling these services on devices. As most businesses are dependent on the internet for every transaction, installing outdoor Wi-Fi has become a severe necessity. Governments across the globe are planning on developing smart cities that will have Wi-Fi coverage all over, thereby providing fresh impetus to the global outdoor Wi-Fi market.
Analysts predict that more than 40% Wi-Fi access points to be deployed by 2016 will be meant for outdoor purposes only. The following year will also witness the installation of Next Generation Hotspots (Hotspot2). Today, wireless networks have become ubiquitous with pervasive usage and these networks have stepped outside the boundaries of homes and offices to be available on the streets, in public transport systems, and in various institutions to enable uninterrupted communication services. 3G services cannot match up to the required connectivity and speed, which is a key factor leading to the growth of the outdoor Wi-Fi market. A huge population base, growing businesses, innovative security solutions, and attempts at creating smooth communication channels are augmenting the growth of the global outdoor Wi-Fi market. 
Asia Pacific to Lead Global Outdoor Wi-Fi Market
The global outdoor Wi-Fi market is segmented on the basis of products, services, end users, and geography. On the basis of products, the global outdoor Wi-Fi market is segmented into wireless hotspot gateways, access points, WLAN controllers, and others such as repeaters and relays. The services segment includes installation, network planning and design, survey, support, and analysis. End users of the global outdoor Wi-Fi market include public sector, healthcare, education, logistics, transportation, hospitality, and travel. 
Geographically, the global outdoor Wi-Fi market is divided into North America, Europe, Asia Pacific, and Rest of the World. Asia Pacific is expected to witness the fastest growth in the coming few years due to a huge population base, increasing efforts by the government, and more number of smartphone users across the region. Additionally, as newer economies in these regions emerge, there is a growing need for outdoor Wi-Fi services.The global Wi-Fi market is being driven by factors increasing penetration of smartphones, personal handled devices, tablets, and other Wi-Fi enabled consumer electronics. As the number of people using mobiles is on the rise, there is a huge demand for data connectivity in outdoor environments, which has led to the exponential growth of the global outdoor Wi-Fi market. 
Technical Challenges Act as a Restraint to the Global Market
Despite such strong growth drivers, the global outdoor Wi-Fi market faces some tough challenges. The factors leading to a restrain in the market are contention loss, technical challenges, and lack of regulation on power limits. A contention loss is defined by too many users converging on a single access point. This brings a pressure on the bandwidth, leading to poor connectivity and dissuading the user from using the particular network. 
The key players in the global outdoor Wi-Fi market are Nokia Siemens Networks, Aerohive Networks, Airspan, Hewlett-Packard, Alvarion, Acatel-Lucent, Motorola Solutions, Juniper Networks, Avaya Inc., Aruba Networks, Netgear, Ericsson, and Meru Networks. With a score of players in the global Wi-Fi market, there is a not only cut-throat competition, but also a rather sever price war. In the coming few years, it will be interesting to see who emerges as the leader of the market and how. Industry experts believe this market will be ruled by the quality rather than the quantity of services provided by companies.
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