Wi-Fi as a Service Market

Market Overview

The global Wi-Fi as a service market size was valued at USD 4.60 billion in 2021. It is projected to garner USD 19.79 billion by 2030, growing a CAGR of 17.6% during the forecast period (2022–2030).

Wi-Fi (WaaS) is a cloud-based management system that enables enterprises with minimal IT resources to offer safe, dependable, and speedy WLAN connectivity in multiple locations. It can be controlled through a network operations center (NOC), allowing smaller businesses to acquire a fast and dependable data network.

Wi-Fi as a service (WaaS) is a subscription-based model that includes infrastructure, software, and managed services. It is a high-speed Wi-Fi solution managed by cloud-based management systems for connectivity and Wi-Fi network configuration. The most significant advantage of managed Wi-Fi services is delegating responsibility for Wi-Fi network operation to a team of highly skilled experts.

Market Dynamics

Global Wi-Fi as a Service Market Drivers

Low Capital Expenditure

Wi-Fi as a service makes it easier for customers to determine the source of network issues without requiring the downtime associated with false starts and dead ends. This helps keep the business running without interruptions and reduces the labor costs associated with ineffective root cause analysis. For instance, the typical consumer reports spending 9.2 hours a week troubleshooting issues related to their Wi-Fi connection. The average business would experience an annual cost reduction of USD 113 per Wi-Fi end-user if time spent troubleshooting Wi-Fi could be reduced by 71%.

Increasing Numbers of Wi-Fi hotspots in Public Areas

The governments of several nations have launched various programs to provide free Wi-Fi in public locations and on public transportation to provide tourists with an improved experience while traveling. For example, the government of India has set a goal in the National Digital Communications Policy 2018 to facilitate the deployment of 10 million public Wi-Fi hotspots by 2022. In addition, several nations are working toward enabling public Wi-Fi to provide digital governance and encourage data innovation among the general population. Mobile users can travel throughout the country with data access, thanks to the installation of public Wi-Fi. This will improve the quality of calls made by mobile users and give tourists real-time information about traffic conditions. As a result, for businesses to properly maintain their Wi-Fi networks, they will require WaaS services to design, implement, monitor, and support the Wi-Fi. This requirement is driving demand in the market for Wi-Fi as a service. In addition, installing public Wi-Fi in shopping centers, transportation hubs, and other public locations is a driving force behind the market expansion. The expansion of the application is another factor driving the Wi-Fi as a service market growth, which is projected to be bolstered by the many initiatives governments worldwide have undertaken to construct smart cities.

Global Wi-Fi as a Service Market Restraint

Safety Concerns

Many end-users, such as the government, businesses, communication service providers, and network operators, are reluctant to utilize public Wi-Fi networks because the security risks are a barrier to their widespread adoption. In addition, the availability of open-source software and gateways with a lower level of security frequently increases the chance of data loss and theft through public internet domains. The market expansion is hampered further by the fact that numerous nations worldwide have voiced numerous security and privacy concerns about using free and public Wi-Fi networks.

Global Wi-Fi as a Service Market Opportunities

Increasing Use of the Internet of Things

A rise in demand for the Internet of Things (IoT) due to the adoption of smart devices is predicted to fuel growth in the Wi-Fi as a service market. The proliferation of IoT environments is driving greater demand for Wi-Fi as a service since it enables uninterrupted internet connectivity, leading to improvements in energy efficiency. Internet of Things (IoT) has proven to be one of the most beneficial innovations of the past few decades. In addition, launching several new apps by leading mobile application vendors, such as the Internet of Things and mobile-connected smart devices, contributes to expanding the international market.

Regional Analysis

The global Wi-Fi as a service market is segmented into four regions, namely North America, Europe, Asia-Pacific, LAMEA

North America is the most dominant and is expected to reach USD 6.20 billion by 2030, expanding at a CAGR of 15.7% during the forecast period. The United States and Canada are evaluated in this study of Wi-Fi as a service in North America. The presence of significant firms in the industry, including Extreme Networks, Cisco, and ARRIS, has contributed to the region's expansion. Additionally, an increase in the use of Wi-Fi technology among enterprises to improve consumer target marketing is predicted to sustain the growth of the Wi-Fi as a Service market. It is anticipated that factors such as the growth of the e-commerce industry and an increase in the funds provided by the government to encourage Wi-Fi connectivity in the United States would help expand the market.

Wi-Fi as a service is an expanding market in Europe, and European organizations continue to focus a substantial amount of emphasis on this industry. The continuous demand for tablets, cutting-edge smartphones, and other connected gadgets is the primary force behind the market expansion. This trend is predicted to lead to a dramatic increase in people installing Wi-Fi networks. The Asia-Pacific region is a profitable market for companies that sell solutions and services related to Wi-Fi. This can be clarified by significant developing economies and a broad client base for various businesses. As a result of the penetration of smartphones and an increase in internet users, it is projected that this area will see the most significant growth rate throughout the forecast period.

Segmental Analysis

The global Wi-Fi as a service market is segmented into service, enterprise size, location, and industry vertical.

Based on service type, the market is split into professional and managed services.

The professional services segment is the most significant contributor to the market and is anticipated to grow at a CAGR of 16.4% during the forecast period. Wi-Fi as a professional service includes implementation, advice, support, maintenance, and training. Planning and installing networks are two essential Wi-Fi as professional services. Implementation services ensure complete installation and configuration of the software and include all Wi-Fi components and a program tailored to the client's requirements. Support and maintenance services include effective tracking and managing issues and individual support and performance enhancement. Introducing services ensures the solution's efficient operation and process-wide transparency and control. Third parties offer managed Wi-Fi services and allow businesses to outsource many parts of establishing and maintaining a Wi-Fi network.

Based on location type, the market is segmented into outdoor and indoor segments.

The outdoor segment contributes most to the market and is expected to grow at a CAGR of 16.1% during the forecast period. Wi-Fi as a service outdoor location type refers to deploying access points (APs) in outside areas. APS is primarily placed in public venues, stadiums, and shopping malls for outdoor deployments. This deployment option is helpful in densely populated areas with many Wi-Fi users. Wi-Fi as a service's indoor location type refers to implementing access points (AP) in interior environments. Indoor location services that enable asset tracking and guest navigation functionalities are added to the standard access point feature set.

Based on enterprise size, the market is divided into large size and small and medium-sized businesses.

The large-size enterprise segment is the most dominant and is expected to grow at a CAGR of 15.9% during the forecast period. Large firms in the Wi-Fi as a service sector have more than 500 employees and more than USD 1 billion in annual revenue. Large corporations have a high acceptance rate for Wi-Fi as a service, as larger firms consider cloud-managed Wi-Fi as their performance and license capacity increase. Small and medium-sized businesses selected for the Wi-Fi as a service industry have less than 500 employees and less than USD 1 billion in annual revenue. Due to a rise in cloud services by small and medium-sized businesses in various industry verticals, the small and medium-sized business category is expected to develop rapidly.

Based on industry vertical, the market is divided into telecom and IT, BFSI, education, healthcare, hospitality, transportation, and retail.

The telecom and IT category contributed the most to the market and is expected to grow at a CAGR of 16.5% during the forecast period. In this business, the demand for Wi-Fi hotspot solutions is on the rise, as the smooth performance of Wi-Fi hotspots. Increased reliance on internet connectivity for all industry business processes adds significantly to the expansion of the global market. Wi-Fi hotspots are utilized extensively in the retail industry to enhance the customer experience and omnichannel operations. Wi-Fi hotspots improve consumer engagement and retail business application management. Changes in consumer behavior and demographics fuel the expansion of the market.

Recent Developments

• April 2022, Arista brings cognitive networking to mid-range markets.
• April 2022, CommScope’s Innovative Set Top Will Provide Orange Moldova’s Subscribers with Both Live and Streaming Viewing Options.
• May 2022, Cisco Releases Its Cloud Controls Framework to The Public, Making Security Certification More Accessible.
• May 2022, Extreme Networks to deploy Wi-Fi and network analytics at Liverpool’s stadium.
• May 2022, Wi-Fi Alliance details the ‘rapid adoption of Wi-Fi 6 and 6E.