Wifi-as-a-Service Market is expected to reach US$ 13.34 Billion by 2028

The wi-fi as a service market size is expected to reach US$ 13.34 billion by 2028 and registering at a CAGR of 19.5% during 2022–2028, according to a new research study conducted by The Insight Partners.

Demand for Reducing OPEX Catalyzes Wi-Fi as a Service Market Growth

Source: The Insight Partners Analysis

Wi-fi as a service is a subscription-based service offering that integrates software, infrastructure, and managed services. Software offerings include solutions for centralized network management, business intelligence, captive portals, and location services, among others. Infrastructure includes access points, firewalls, and internet service providers (ISPs). Through managed services, customers of the wi-fi as a service market players can avail 24×7 monitoring and assistance for troubleshooting any issues with networks. Moreover, enterprises can provide secure and fast wireless local area networks (WLAN) across different locations using wi-fi as a service. This drastically reduces their operational expenditure (OPEX) since no investments in the purchase and upgrading of IT infrastructure, and appointment of in-house IT teams is required. Additionally, with the shrinking lifecycles of electronics, enterprises don’t need to upgrade their systems on a frequent basis, further saving operational costs. Such varied advantages are collectively driving the wi-fi as a service market growth. The increasing use of public wi-fi across different industry verticals is also contributing to the wi-fi as a service market growth. Industry 4.0 and cloud-managed wi-fi services are other prominent trends that are benefitting the wi-fi as a service market growth.

The wi-fi as a service market, by user location, is segmented into indoor and outdoor. There is a higher demand for wi-fi as a service for indoor applications, which is primarily attributed to its ability to ensure low latency, higher speed, and better network capacity, among others. The wi-fi as a service market for the outdoor segment is anticipated to grow at a significant pace during the forecast period. The projected market growth is ascribed to the growing deployment of wi-fi services across public places, and government initiatives promoting the smart city and smart roadway construction projects. Such projects have been increasing in developed and developing nations alike. Additionally, several developing nations have been focusing on increasing their internet penetration, which have been leading to deployment of public wi-fi in public places such as railways stations, bus stations and shopping malls. Such deployments are mostly being done with the aid of wi-fi as a service market players.

The wi-fi as a service market, by organization size, is bifurcated into large enterprises and SMEs. Large enterprises are the primary consumers of wi-fi as a service; the segment held a larger market share in 2021. During the COVID-19 pandemic, most large enterprises witnessed a significant decline in revenues. To compensate for losses, they preferred adopting wi-fi as a service as a measure to reduce operational costs. Similarly, SMEs felt the need to embrace digital transformation, in addition to operational cost reduction measures, for maintaining competitiveness.

The wi-fi as a service market, by industry, is segmented into healthcare, BFSI, transportation and logistics, IT, manufacturing, and others. The BFSI sector is one of the largest consumers of wi-fi as a service, as these enterprises avail these services to efficiently manage online transactions, which exhibited a notable spur during the COVID-19 pandemic. The e-commerce segment also experienced a surge in online shopping, which also favored the growth of the wi-fi as a service market.

Despite growing demand, the wi-fi as a service market is primarily hindered by data privacy and security concerns. Availing wi-fi as a service provides less control to in-house IT teams on security, thus giving rise to data privacy concerns. The impact of this restraint is expected to remain moderate throughout the forecast period, since despite best practices, threats of data breach will always persist.

Alcatel-Lucent Enterprise; Cisco Systems, Inc.; CommScope, Inc.; Fujitsu Ltd.; and Juniper Networks Inc. are among the key wi-fi as a service market players profiled during the study. Several other major wi-fi as a service market players were studied and analyzed during this research study to get a holistic view of the wi-fi as a service market and its ecosystem.

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