Indoor Access Point Market Size (2023 – 2030)

The Indoor Access Point Market was valued at USD 3.21 billion and is projected to reach a market size of USD 4.99 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 5.68%. 

In the past, wi-fi technology was limited to specific spaces with a limited frequency of 2 to 3GHz, which was often used in offices or other commercial settings. However, an increase in internet penetration and developments in Wi-Fi connectivity technologies led to the emergence of faster, more secure, and reliable indoor access point that is not limited to commercial settings but also residential settings. Moreover, with growing trends in work-from-home, study-from-home, small home businesses, and others there is an increase in demand for tri-band indoor access point devices that offer uninterrupted access to the internet with frequencies beyond 5GHz to 6GHz. Additionally, consumer demand for secure connectivity solutions due to the rise in cyber-attacks has led to the development of cloud-based connectivity solutions that not only offers faster and more secure network but also increase scalability, allowing consumers to manage multiple devices without congesting the network. Furthermore, developments in Wi-Fi technology such as Wi-Fi 7 and Beyond and increased incorporation of AI and machine learning integrations in managing network congestion, performance, and speed are further anticipated to boost the market for indoor access points.

Key Market Insights:                                                                  

As per Owl Labs' State of Remote Work 2022 report, there was an interest in remote and hybrid work by 24% and 16% respectively.

According to ITU (Internet Telecommunication Union) Global Connectivity Report 2022, there was an immediate spike in internet usage of around 30% during the pandemic, as global demand shifted from enterprise to residential.

According to American Community Survey in the year 2021, 97% of people aged 3 to 18 years and above had home internet access.

As per data revealed by Intel, Wi-Fi 6 E capable devices accounted for an increase of 1262 in Q4 of last year (2022).

Indoor Access Point Market Drivers:

Increasing demand for high-speed connectivity has boosted the demand for indoor access points in the market.

Internet users have increased to manifolds in recent years on account of rising trends in digitization during and post-pandemic. This has further led to an increase in demand for wireless indoor access point devices for remote working and learning purposes. These include the use of high-speed connectivity for video-conferencing, remote collaboration, delivering online lessons, and others. Moreover, gaming influencers are one of the major consumers of high-speed connectivity devices, as they require robust, secured, and uninterrupted connectivity for gaming purposes such as fighting online battles and challenges.

Rising demand for smart home technologies drives the demand for an indoor access point in the market.

Smart home technologies have witnessed an increase in recent years due to increasing consumer demand for convenient and secure home devices. Moreover, cheaper access to the internet and other wireless connectivity solutions is further driving the sale of smart home technologies such as smart thermostats, security cameras, smart lighting solutions, smart electronics, and others that heavily rely on high-speed connectivity. Moreover, mid-range indoor access point devices are widely used for smart home technologies due to the increased scalability they provide. Furthermore, indoor access points offer uninterrupted connectivity that ensures seamless working of these smart home devices. In addition, with the increased adoption of Wi-Fi 5, Wi-Fi, and beyond connectivity solutions for smart home devices, there is a reduction in network congestion and users can manage multiple devices simultaneously without the fear of slowdown.

Indoor Access Point Market Restraints and Challenges:

Security concerns can deter the market growth of indoor access points. Indoor access point devices, though equipped with robust security solutions are prone to unauthorized access and data breaches, as they are managed via a centralized online platform, wherein customer’s online activity is stored, leading to increased risk of data breach, privacy leak, and misuse of data by hackers.

Though indoor access points offer various connectivity solutions to users, their usage is limited to geographical areas where internet connectivity is not supported, especially rural areas. This can lead to a decline in demand for indoor access points in the market.

Indoor Access Point Market Opportunities:

The Indoor Access Point Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, increasing trends in remote working and studying along with rapid developments in Wi-Fi technology is predicted to develop the market for indoor access point and enhance its future growth opportunities.

INDOOR ACCESS POINT MARKET REPORT COVERAGE:

Indoor Access Point Market Segmentation: By Type

• Single Band

• Dual Band

• Tri-band

• Other

In 2022, based on market segmentation by type, dual-band occupies the highest share of about 27% in the market. Dual-band indoor access points are typically used for enhanced network performance and flexibility in switching over two networks. Moreover, it reduces network congestion and enables users to switch devices across dual networks such as devices that require fast performance and the network can shift to a 5GHz band and take advantage of a high-speed network. Moreover, it is highly scalable in terms of managing multiple devices and users, thus balancing the network load efficiently.

Tri-Band is the fastest-growing segment during the forecast period. Tri-band indoor access point offers similar features to the dual-band, the only difference is that instead of a dual-band network, it allows users to switch across three networks for increased network performance and scalability. Moreover, rising entrepreneurship and work-from-home culture have increased the usage of this fast-speed network helping to reduce network congestion and enabling users to use the network for various devices simultaneously. Moreover, the frequency capacity goes beyond the 5GHz band.

Indoor Access Point Market Segmentation: By Deployment

• Ceiling-Mounted

• Desktop

• Wall-Mounted

• Others

In 2022, based on market segmentation by deployment, desktops occupied the highest share of about 26% in the market. Desktop indoor access points are primarily used for home offices, small businesses, and others that require a higher amount of flexibility and mobility in terms of network connection. Moreover, these are often in the form of wireless networks that allow users to create a Wi-Fi hotspot as per their location. In addition, these devices are meant for network coverage in smaller areas such as single rooms, home offices, or others that do not require extensive wiring or cabling. Furthermore, the growth of this segment is attributed to easy installation, increased security, and higher cost-effectiveness compared to other indoor access point devices.

Wall-mounted is the fastest-growing segment during the forecast period. Wall-mounted indoor access points are installed on the wall for specific network coverage in specific rooms or spaces. These include home offices that require Wi-Fi connectivity in a single room, and meeting rooms in offices that require specific network connectivity for presentation and video conferencing purposes in a single room. Similar to desktop indoor access points, wall-mounted access points offer limited network coverage that is limited to a single room or space thus ensuring high security and easy installation to its users.

Indoor Access Point Market Segmentation: By Range

• Short Range

• Mid - Range

• Long Range

In 2022, based on market segmentation by range, mid-range occupied the highest share of about 30% in the market. Mid-range indoor access points offer network coverage for medium-sized spaces, which include classrooms, office rooms, medium-sized home businesses, and others that have specific network connection requirements.

Short-range is the fastest-growing segment during the forecast period. This range of indoor access points is widely used by small home offices, small-scale businesses, waiting areas, and others that require net coverage for a specified amount and time. Moreover, indoor access points in this range are cost-effective, simple in structure, and reduce network congestion, as they offer high-speed connectivity enclosed in a specific area that can serve connected devices present in these spaces.

Indoor Access Point Market Segmentation: Regional Analysis

• North America

• Europe

• Asia-Pacific

• South America

• Middle-East & Africa

In 2022, based on market segmentation by region, North America occupied the highest share of about 37% in the market. Well-established tech companies offering technologically advanced products and the rise in remote working culture post-pandemic have contributed to the demand for an indoor access point in the region.

Asia-Pacific is the fastest-growing segment in the indoor access point market during the forecast period. The rapid adoption of Wi-Fi 6 and 6E on account of increasing demand for fast-speed connectivity and growing trends in work-from-home and study-from-home culture has contributed to the demand for indoor access points in the region.

COVID-19 Impact Analysis on the Indoor Access Point Market

The pandemic had a positive impact on the indoor access point market. Due to the lockdown, many industries witnessed a slowdown, as physical movements were restricted during the pandemic. Furthermore, this led to an increase in demand for fast-speed connectivity, as people spent most of their time working, browsing, studying, or streaming at home during the pandemic. Moreover, companies, too shifted their focus towards online platforms and increased their presence on social media platforms and e-commerce platforms. This further increased consumer demand for indoor access point products and services from the e-commerce platform, as it offered them contactless delivery and payment options. Moreover, growing trends in cloud-based security and networks boosted the demand for indoor access points, especially for remote working.

Latest Developments:

Continuous product launches and developments in Wi-Fi technologies such as integration of AI, machine learning, IoT, and others fuelling the market growth for indoor access points.

• In July 2023, EnGenius Technologies launched a cloud wi-fi 7 enterprise access point – ECW536. The product is specifically designed for enterprise environments and is powered by Qualcomm’s Networking Pro 1220 chipset. Additionally, it offers ultra-fast speed up to 19.9 Gbps.

• In October 2022, IO by HFCL launched Wi-Fi 7 enterprise-grade Wi-Fi access point with both indoor and outdoor versions. The access points are designed for open-source networking and are powered by Qualcomm’s Networking Pro Platform.

Key Players:

1. Cisco

2. Netgear

3. EnGenius Technologies

4. Grandstream Networks

5. TP-Link

6. Aruba Instant On

7. Juniper Networks

8. EdiMax

9. Allied Telesis

10. Meraki Go

11. Ubiquitti