Dell’Oro Group forecasts Wi‑Fi 7 mainstream and LAN market above $30 billion

Analyst Dell’Oro Group predicts Wi‑Fi 7 will become mainstream in 2026, AI Operations (AIOps) will prove its business case, and the Local Area Networking market will exceed $30 billion but remain below 2023 levels, affecting enterprise network investment and operations.

Market Overview

After supply constraints in 2021 and 2022, vendors shipped high volumes of Wireless Local Area Network (WLAN) and campus switches in 2023, making that year the top grossing year for Local Area Network (LAN) equipment revenue.

Enterprises worked through excess inventory in 2024, causing double-digit revenue declines for vendors, and in 2025 the market faced semiconductor shortages, notably memory, while vendors raised prices in 4Q25.

Key Findings

Dell’Oro forecasts that enterprise-class 802.11be (Wi-Fi 7) (Wi‑Fi 7) will become mainstream in 2026 and that the Wi‑Fi 7 adoption curve will be steeper because there is no interim enhanced version to dilute take-up.

The analyst also expects AIOps platforms to demonstrate a viable business case for many mid-to-large enterprises through labor savings that offset recurring license fees, and predicts the Local Area Networking market will be in the $30 billion range in 2026 but will not surpass 2023 revenue.

Segment or Supplier Performance

Vendors experienced a peak in WLAN and campus switch revenue in 2023 followed by inventory-driven declines in 2024 and a return to demand in 2025 amid component shortages.

In 4Q25 vendors raised prices to offset escalating component costs, and analysts expect vendors to apply lessons from prior supply crunches to manage 2026 supply challenges.

Technology or Trend Analysis

Enterprises may adopt Wi‑Fi 7 to access the 6 GHz band, to replace WLAN equipment nearing end of life, or to support digital transformation projects that require higher quality wireless connectivity.

Dell’Oro notes that private 5G deployments will grow but remain constrained to a niche, high-end portion of the market, and that AIOps vendors have added features such as bundled 24×7 support which increases recurring license value.

Forecast or Analyst Outlook

Weighing demand, component shortages, price increases, and infrastructure replacement needs, Dell’Oro expects continued market growth in 2026 with revenues well into the $30 billion range while still below the highs of 2023.

Analysts plan to review outcomes at the end of 2026 to assess whether revenues surpass the 2023 peak.

The analyst projects that Wi‑Fi 7 mainstreaming, broader AIOps adoption, and ongoing supply and pricing dynamics will affect enterprise networking investment in 2026. This Analyst Signals brief reflects a neutral, fact-based summary of the original research note.