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2 WI-FI HOTSPOT MARKET GLOBAL FORECAST TO 2020 By Components (Wireless Hotspot Gateways, Wireless Hotspot Controllers and Mobile Hotspot Devices), By Software, By Services, By End Users, By Verticals, & By Regions Report Code: TC 3389

3 1 INTRODUCTION 1.1 OBJECTIVES OF THE STUDY To analyze the Wi-Fi Hotspot market with emphasis on high-growth components, software, services, verticals, end users, and regions To provide impact analysis of market dynamics that describe the factors currently driving as well as restraining the growth of the market, along with their impact in short, medium, and long terms To provide competitive intelligence from market share analysis To analyze market growth strategies from the market size and forecast statistics To analyze the opportunities for the stakeholders through the study of the competitive landscape in the Wi-Fi Hotspot market To provide insights on core competencies 1 and key growth strategies of companies in the Wi-Fi Hotspot market To forecast the market size of the Wi-Fi Hotspot market and its various submarkets with respect to five regions, namely, North America (NA), Latin America (LA), Europe, Middle East and Africa (MEA), and Asia-Pacific (APAC) 1. Core competencies of the companies are captured in terms of their key developments, SWOT analysis, and key strategies adopted by them to sustain their position in the market. 0

4 1.2 MARKET DEFINITION Wi-Fi Hotspot is a wireless network connection of two or more digital devices within a limited area. This Wi- Fi Hotspot enables the enterprises to establish seamless connection within the enterprise ensuring no dropped packets and high performance. The Wi-Fi Hotspot market includes all the components, software, and services offered by technology vendors, to arrive at the market size of Wi-Fi Hotspot. The market considers communication service providers and network operators, enterprises and government to constitute the market size. 1.3 MARKET SCOPE This report on the Wi-Fi Hotspot market focuses on various Wi-Fi components, software, services, verticals, and end users that are driving this market. The detailed scenario of the Wi-Fi Hotspot market across different sub-segments along with their market sizes are described in this report. The market analysis has been carried out in the following regional markets: North America, Europe, APAC, Latin America, and Middle East and Africa. The various factors driving these markets are also described in the regional sections of the report. Apart from the regional analysis, the trends of the component markets and reasons for the rise in the market size for a particular solution are also described in the report. The report also includes an analysis of competitive landscape, highlighting the recent Mergers and Acquisitions (M&A), venture funding, and product developments in the industry in the recent past; the company profiles section highlights the players dominance in this market and their strategies for expansion to gain more market share in the Wi-Fi Hotspot market MARKETS COVERED This research report categorizes the Wi-Fi Hotspot market into the following segments: BY COMPONENT Wireless hotspot gateways Wireless hotspot controllers Mobile hotspot devices Wi-Fi Hotspot Market BY GEOGRAPHY North America Europe APAC MEA Latin America BY SOFTWARE Centralized hotspot management Wi-Fi security software Wi-Fi hotspot billing software Cloud-based hotspot management BY SERVICE Professional services Installation and integration services Consulting services Managed services BY END-USER Communication service providers & network operators Enterprises Government BY VERTICAL Telecom and IT Financial services Education Healthcare Hospitality Transportation Retail Others ( Pharmaceutical, Sports and Manufacturing) 1

5 1.3.2 YEARS CONSIDERED FOR THE STUDY HISTORICAL YEAR BASE YEAR ESTIMATED YEAR PROJECTED YEAR FORECAST PERIOD CURRENCY The currency used in the report is U.S. dollars, with market size indicated only in $million. For companies reporting their revenues in U.S. dollars, the revenue was picked from their annual report. For companies that reported their revenues in other currencies, average annual currency conversion rate was used for the particular year to convert the value in U.S. 1.4 STAKEHOLDERS The Wi-Fi Hotspot market consists of the following stakeholders: Services providers Enterprises Data center operators Network operators Cloud services providers Network equipment manufacturers 1.5 LIMITATIONS The market size has been derived considering the cost of Wi-Fi Hotspot components, software, and services in US$ and not in volume In this report, we have limited the report scope only to the Wi-Fi Hotspot vendors solutions excluding the open-source-based Wi-Fi solutions 2

6 2 RESEARCH METHODOLOGY 2.1 INTRODUCTION This research study involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg BusinessWeek, Factiva, and Market Watch to identify and collect information useful for this technical, market-oriented, and commercial study of the Wi-Fi Hotspot market. The primary sources are mainly several industry experts from core and related industries and preferred suppliers, manufacturers, distributors, services providers, and technology developers from companies and organizations related to all segments of this industry s value chain. In-depth interviews were conducted from various primary respondents that include key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts to obtain and verify critical qualitative and quantitative information as well as to assess future prospects. FIGURE 1 GLOBAL WI-FI HOTSPOT MARKET: RESEARCH DESIGN CURRENT MARKET INFORMATION AND DATA EVOLUTION MARKET SHARE PRICING TRENDS COMPETITIVE LANDSCAPE REIMBURSEMENT SCENARIO WI-FI HOTSPOT REGULATORY LANDSCAPE GEOGRAPHIC USAGE PATTERN INFLUENCING FACTORS (Market Trends and Dynamics) Market Drivers: Adoption of BYOD trend Adoption of carrier Wi-Fi by the network operators for data traffic offload Advanced network infrastructure Industry Trends: Increasing use of mobile devices and smartphones in enterprises Winning Imperatives: Meeting the demand of large enterprises and government New upcoming markets Market Challenges: Contention loss and cochannel interference Radio frequency range and multipath interference Market Opportunities: Mobile Hotspots Developing economies of APAC and MEA Market Restraints: Meeting the bandwidth requirement of the applications Security issues Agreements, Collaborations, & Partnerships: More than 10 deals in the last three years New Product Launches: More than 15 new product launches in the last three years MACRO FACTORS INFLUENCING THE INDUSTRY FORECAST ( ) HISTORICAL DATA OF THE MARKET IMPACT ANALYSIS OF MARKET TRENDS Market Size & Forecast By components and software By Services By End Users ARRIVAL AT THE MARKET SIZE, SHARE, AND CAGR FOR THE WI-FI HOTSPOT MARKET The illustrative figure given above shows the market research methodology applied in making this report on the Wi-Fi Hotspot market. 3

7 In the secondary research process, various secondary sources such as technology vendors white papers, CRN Magazine, OSP Magazine, and other corporate magazines were referred to for identifying and collecting information for this study. The secondary sources include annual reports, press releases and investor presentations of companies, articles from recognized authors, directories, and databases. Secondary research was mainly used to obtain key information about, the market s value chain, the total pool of key players, market classification and segmentation according to industry trends to the bottommost level, geographic markets, and key developments from both market and technology-oriented perspectives. In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the Wi-Fi Hotspot market. After the complete market engineering (which includes calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and to verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types; industry trends; key players; competitive landscape of Wi-Fi Hotspot solutions provided by different types of market players; and key market dynamics such as drivers, restraints, opportunities, burning issues, winning imperatives, industry trends, and key player strategies. In the complete market engineering process, both top-down and bottom-up approaches were extensively used along with several data triangulation methods to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report. 2.2 MARKET SIZE ESTIMATION Both, top-down and bottom-up approaches were used to estimate and validate the size of the global market and to estimate the size of various other dependent submarkets in the overall Wi-Fi Hotspot market. The research methodology used to estimate the market size includes the following details: the key players in the market were identified through secondary research, and their market shares in respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined by using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added with detailed inputs and analysis from MarketsandMarkets and presented in this report. The following figures show an illustrative representation of the overall market size estimation process employed for the purpose of this study. 4

8 FIGURE 2 MARKET SIZE ESTIMATION METHODOLOGY: BOTTOM-UP APPROACH Global Market Size Total Market Size ($Million) = (North America + Europe + Summation of A x B of all Regions Demand/Dominance per Region for Each Type of Segment (B) PRIMARY: Demand and Supply Side Experts Geographical Split to the Number of Units Sold (A) Solutions Requirement for Each Segment, Globally SECONDARY: Annual Reports, Presentations, Press Releases, Journals, Paid Databases, and MarketsandMarkets Repository FIGURE 3 MARKET SIZE ESTIMATION METHODOLOGY: TOP-DOWN APPROACH Total Global Wi-Fi Hotspot Market ($Million) The Global Market Size is Validated Through Primaries (Demand and Supply Side Experts) Percent Split for the Market Segments of Waterway Transportation Software and Services Market Geographical Split Regional and Country-wise Market for Each Subsegment PRIMARY SOURCES: Demand & and Supply Side Experts SECONDARY SOURCES: Annual Reports, Presentations, Press Release, Journals, MarketsandMarkets Repository The bottom-up procedure was employed to arrive at the overall market size of the global Wi-Fi Hotspot market from the revenue of key players (companies) and their shares in the market. Calculations based on number of units sold for each product globally multiplied by average selling price of the product per region gives the overall market size. This overall market size was used in the top-down procedure to estimate the sizes of other individual markets (mentioned in the market segmentation of 5

9 technologies, components, services, types of user, and regions) via percentage splits from secondary and primary research. For the calculation of each type of specific market segment, the most appropriate immediate parent market size was used for implementing the top-down procedure. The bottom-up procedure was also implemented for data extracted from secondary research to validate the market segment revenues obtained. Market shares were then estimated for each company to verify the revenue shares used earlier in the bottom-up procedure. With the data triangulation procedure and validation of data through primaries, the exact values of the overall parent market size and each individual market size were determined and confirmed in this study. The data triangulation procedure implemented for this study is explained in the next section. 6

10 SUPPLY SIDE DEMAND SIDE Wi-Fi Hotspot Market Global Forecast To MARKET BREAKDOWN AND DATA TRIANGULATION After arriving at the overall market size from the market size estimation process explained above, the total market was split into several segments and sub segments. In order to complete the overall market engineering process and arrive at the exact statistics for all segments and sub segments, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply side. Along with this, the market was validated using both top-down and bottom-up approaches. FIGURE 4 WI-FI MARKET BREAKDOWN AND DATA TRIANGULATION PRIMARY SOURCES SECONDARY SOURCES Interviews with: Chief information officers IT technicians and technologists Purchase managers in IT provider organizations MnM KNOW* Annual Reports, Presentations, Websites and Press Release of top players, News Articles, Journals, CRN, OSP and Paid Databases Interviews with: CEOs Vice Presidents Marketing Directors Technology and innovation directors and related key executives from various key companies and organizations operating in the Wi-Fi market PRIMARY SOURCE DATA TRIANGULATION SECONDARY SOURCE INFORMATION SOURCED International Telegraph Union- Telecommunication (ITU-T) Key Players Competitive Landscape Opportunities/ Challenges Market Size and Market Share Influencing Factors Market Estimates Geographical Analysis MnM KNOW* stands for MarketsandMarkets 'Knowledge Asset Management' framework. In this context, it stands for existing market research knowledge repository of over 5,000 granular markets, our flagship competitive intelligence and market research platform "RT", subject matter experts, and independent consultants. MnM KNOW acts as an independent source that helps us validate information gathered from primary and secondary sources. 7

11 2.4 MARKET SHARE ESTIMATION The market share for the Wi-Fi Hotspot companies has been determined on the basis of secondary data available through paid and unpaid sources and by analyzing product portfolios of major companies and rating them on the basis of performance and quality. These data points were further validated by primary sources., KEY DATA FROM SECOND ARY SOURCES PARAMETERS Market Size (Value) SOURCES Company Financials Magazines Journals Press Releases Paid Databases The MarketsandMarkets Data Repository Revenue of Companies Annual Reports Company Websites Public Databases The MarketsandMarkets Data Repository Qualitative Information (Market Dynamics, Market Trends) Company Websites Annual Reports Press Releases The MarketsandMarkets Data Repository KEY DATA FROM PRIMAR Y SOURCES PARAMETERS KEY DATA Geographic Split Overall market and its segments in 2015 CAGR of each region in the forecast period ( ) The global Wi-Fi Hotspot market, by region North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa Global Market Size The global market size for the year 2015 CAGR for the forecast period ( ) The global Wi-Fi Hotspot market The global Wi-Fi Hotspot market by components, and software The global Wi-Fi Hotspot market by services, vertical and end user Market Split By Component By Software By Services Wireless Hotspot Controllers Wireless Hotspot Gateways Mobile Hotspot Devices Professional Service Installation and Integration Services Consulting Services Managed Services 8

12 K e y i n d u s t r y i n s i g h t s Wi-Fi Hotspot market is estimated to grow consistently. The cloud based Wi-Fi solutions will be the evolving segment. The average growth rate for the Wi-Fi Hotspot market will be between 16-18%. Sales Director, Leading Solution Provider Business Development Head, Leading IT firm The increasing demand from SMEs and introduction of BYOD trend in business is boosting the adoption of Wi-Fi Hotspot solutions The high demand of wireless hotspot gateway controller is driving the adoption of Wi-Fi Hotspot solutions. Sales Director, Leading WLAN Solution Company Head Operations of Leading System Integrator Source: Expert Interviews and Secondary Literature FIGURE 5 BREAKDOWN OF PRIMARY INTERVIEWS: BY COMPANY TYPE, DESIGNATION, AND REGION NUMBER OF PRIMARIES: BY COMPANY NUMBER OF PRIMARIES: BY DESIGNATION NUMBER OF PRIMARIES: BY REGION Note: *Others include sales managers, marketing managers, and product managers The tier of the companies is defined on the basis of their total revenue, as of 2013: Tier 1 = >$ billion, Tier 2 = $ million to $ Billion and Tier 3 = <$ million 9

13 2.4.3 ASSUMPTIONS FIGURE 6 GLOBAL WI-FI HOTSPOT MARKET: ASSUMPTIONS PARAMETERS ASSUMPTIONS Economy The economic conditions will be favorable till the end of 2020, no major increase or decrease in the global economy will be recorded in the forecast period. Political Stability MarketsandMarkets assumes stability in a majority of the regions covered Exchange Rates MarketsandMarkets assumes that dollar fluctuations will not be serious enough to affect the forecasts to a significant extent 10

14 3 EXECUTIVE SUMMARY The increasing mobility in business due to introduction of Bring Your Own Device (BYOD) trend, growing number of business and vertical specific mobile applications, and development of advanced network infrastructure are driving the evolution of Wi-Fi Hotspot market. The Wi-Fi Hotspot is a crucial part of the enterprises, communication service providers, and network operators as the complete data transmission, smooth delivery and visibility of applications over Wi-Fi are critical for the businesses. The increasing number of mobile devices and smartphones by the employees is a key factor changing the business outlook in the digital world. The employees are using their personal devices to access the business networks and thus consuming more and more bandwidth. Now to resolve this issue and make the business transactions smoother within the organization, organizations are deploying Wi-Fi Hotspot solutions. The number of connected devices across the world is expected to grow enormously in the coming years which in turn will be responsible for increasing the complexity of the networks. To tackle this situation and in order to make a mark in the dynamic telecom environment, adoption of Wi-Fi Hotspot solutions by communication service providers and network operators is expected to rise significantly in the coming years. Enterprises and cloud service providers are also in their initial phase of deploying and leveraging Wi-Fi Hotspot solution in order to keep track of their networks which comprise enterprise connected devices. All the above mentioned factors are expected to accelerate the growth in the adoption of Wi-Fi Hotspot solutions globally. Moreover, the introduction of IEEE ac family of standards is a great opportunity for the growth of the Wi-Fi Hotspot market. This ac Wireless Local Area Network (WLAN) offers promising high speed wireless transmission that can scale up to 1Gbps, which is why ac family standards are rapidly penetrating the market. With the increase in business and vertical-specific mobile applications such as Oracle BI and SAP based vertical solutions, enterprises are pushed to adopt solutions to manage their applications over the network, as well as maintain its security. Wi-Fi Hotspot enables these enterprises to maintain all mobile devices and smartphones accessing the network, ensuring network security. In the current business scenario, most of the organizations are facing problem of high performance integrated services, in terms of optimizing network performance. To unravel this issue of network and infrastructure performance, companies are adopting Wi-Fi Hotspot solution, as it is less costly and more efficient than traditional services. The rapid and exponential growth in the digitalization of various enterprises, businesses, and organizations has resulted in increase in demand for Wi-Fi Hotspot. Many large enterprises, organizations and government entities are transforming their traditional business operations into high performance integrated business processes with the help of Wi-Fi Hotspot. Major players in the Wi-Fi Hotspot market are Aruba Networks, Cisco, Alcatel-Lucent, Ruckus Wireless, and Ericsson. These players along with the others present in the market are expected to make a big impact in this rapidly growing marketplace in the next five years. The report also emphasizes on key global adoption trends, future growth potential submarkets, key drivers, competitive outlook, restraints, and opportunities of Wi-Fi Hotspot ecosystem. It also provides insights into the current and future revenues of market from 2015 to 2020 and is aimed to provide the reader with an understanding of market drivers, current and upcoming players, and competitive landscape. 11

15 FIGURE 7 WI-FI HOTSPOT MARKET SEGMENTATION By Components Wireless Hotspot Gateways Wireless Hotspot Controllers Mobile Hotspot Devices Centralized Hotspot Management By Software Wi-Fi Security Software Wi-Fi Hotspot Billing Software Cloud Based Hotspot Management Network Planning and Design By Services Professional Service Installation and Integration Services Consulting Services Managed Services Source: SEC Filings, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis The Wi-Fi Hotspot market is further drilled down by vertical (BFSI, IT and Telecom, Healthcare, Education, Transportation, Hospitality, Retail and other verticals), by end user (Communication Service Providers and Network Operators, Enterprises and Government), and by region (North America, APAC, Europe, MEA, and Latin America). The adoption of Wi-Fi Hotspot solutions continues to gain momentum in the North America and APAC market. This is attributable to the significant leap forward in Wi-Fi Hotspot technology. The table given below highlights the global Wi-Fi Hotspot market. The global Wi-Fi Hotspot market is expected to grow from $ billion in 2015 to $ billion by 2020, at an estimated Compound Annual Growth Rate (CAGR) of % from 2015 to As the BYOD trend is getting popular in enterprises, it has become very important for the enterprises to maintain a seamless access of all applications over these devices and at the same time keep the network secure. These issues can be easily solved by installing Wi- Fi Hotspot solutions and this is the prime reason for the increasing adoption of Wi-Fi Hotspot solutions in enterprises. The demand for low-latency services is increasing at a higher rate across all verticals. TABLE 1 GLOBAL WI-FI HOTSPOT MARKET, ($ MILLION) Total CAGR Revenue Y-O-Y e = estimated; p = projected Sources: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis The table given below highlights the global Wi-Fi Hotspot market by type. The components contributes to % of the total Wi-Fi Hotspot market and is expected to grow from $ million in 2015 to $ million by 2020, at an estimated Compound Annual Growth Rate (CAGR) of % from 2015 to This segment is witnessing such a high growth with the increasing demand of smartphones and smart devices globally. 12

16 TABLE 2 WI-FI HOTSPOT MARKET SIZE, BY TYPE, ($MILLION) Type e 2020-p CAGR ( ) Components Software Services Total e = estimated; p = projected Sources: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis FIGURE 8 ASIA PACIFIC IS EXPECTED TO GROW AT THE FASTEST RATE DURING THE FORECAST PERIOD( ) NORTH AMERICA % % EUROPE % % ASIA-PACIFIC % % LATIN AMERICA % % MIDDLE EAST & AFRICA % % Market Share % CAGR % Source: SEC Filings, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis Note: CAGR forecast period ( ) The above given figure portrays the geographic snapshot of the global Wi-Fi Hotspot Market by regions. NA is the biggest contributor to this market with % of the market share. This because of the increasing trend among the various business to offer free Wi-Fi services to enhance customer experience and advancement in Wi-Fi enabling technologies. APAC is the rapidly growing market with highest CAGR of % with the rapid penetration of smart devices and smart phones in emerging markets of Indonesia, China, and India. 13

17 FIGURE 9 WIRELESS HOTSPOT GATEWAYS IS COVERING THE MAXIMUM GROWTH OF WI-FI HOTSPOT COMPONENT MARKET (2015 VS. 2020) CAGR% % % % Source: Articles, White Paper, Expert Interviews, and MarketsandMarkets Analysis Companies such as Aruba Networks, Aptilo Networks, Alcatel-Lucent, Cisco, Ericsson, Netgear, ipass, Inc., Nokia Networks, Boingo Wireless, and Ruckus Wireless were the top players in the Wi-Fi Hotspot Market.. FIGURE 10 NEW PRODUCT LAUNCHES AND MERGERS & ACQUISITIONS TO BE THE DIFFERENTIATING TREND FOR THE TOP COMPANIES, The new product launches are the key strategies followed by the companies offering Wi-Fi Hotspot in order to grow in the market. This strategy accounted for % of the total strategy development in the Wi-Fi Hotspot market. The mergers and acquisitions are also the key strategies which have been adopted by the companies offering Wi-Fi Hotspot in order to grow in the market. This strategy accounted for % of the total strategy development in the Wi-Fi Hotspot market. In order to keep pace with innovative communication services, companies are collaborating with the pioneer companies to launch new solutions or enhance their offerings. The volatile market and continuous changing demand is % New Product Launches % Expansions % Mergers and Acquisitions % Partnerships Collaborations and Agreements encouraging the industries to go with this strategy. Market players are entering into new market with more resources, greater capabilities, and increased technical experts to grow in the Wi-Fi Hotspot market and have competitive advantage. Besides introducing new products, companies have adopted strategy of agreements, partnerships, collaborations, and joint ventures in the Wi-Fi Hotspot market to enhance their product portfolio. This strategy accounted for the share of % of the total number of growth strategies adopted by the companies in the Wi-Fi Hotspot market during

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