Wi-Fi Hotspot Market Analysis

Wi-Fi Hotspot Market Analysis

The hardware market accounted for over 55% of the market revenue in 2017. The market growth is attributed to the high adoption of Wi-Fi gateways among the residential and the business segment. It is used to provide authentication, authorization, and accounting for a wired or wireless network. The adoption of internet-enabled devices and the increased IP traffic are driving the deployment of gateway devices in the market. Moreover, the adoption of cloud access points among enterprises also promotes the market.

The software market is estimated to grow at a CAGR of over 15% during the projected timeline. The market is driven by the growing adoption of customized software solutions among users to manage their access to the Wi-Fi hotspot. These software applications are used to grant registered and unregistered access to the network and ensure the security of the network by encrypting the network data traffic. The software systems are also used by the organization to monitor the data consumption per user and generate bills for registered users.

The services market is also anticipated to attain a steady annual growth rate of more than 13% during the forecast timespan. The demand for the third-party service providers among organizations is the primary factor that will augment the market. The companies are outsourcing their IT infrastructure management services to minimize the operational costs associated with the maintenance of IT infrastructure. Moreover, the rising need among organizations to focus on core business competencies and enhance the business performance also encourages the adoption of managed service providers. 
 

The commercial applications accounted for more than 15% of the total stake in the Wi-Fi Hotspot market in 2017. The increasing internet penetration and the growing adoption of smartphones and tablets across several countries are the primary factors accelerating the adoption of Wi-Fi hotspots at public places. The retail sector leads the commercial application market with a share of more than 40%. The retailers are leveraging on the Wi-Fi hotspots as marketing tools to enhance the customer experience and gain insights about the customer behavior. Furthermore, retailers are also offering free Wi-Fi services to engage with the customers and retain them to gain an edge over competitors.   
 

Community applications are projected to grow at the CAGR of over 12% during the forecast timeline. The integration of Wi-Fi-enabled devices with home automation and smart home solutions is the major force accelerating the adoption among residential users. The unlimited data offered by internet service providers and telecom companies at the discounted price is also encouraging the adoption of Wi-Fi hotspots at homes.   
 

Europe is dominating the Wi-Fi Hotspot market with over 35% of the total market share. The high adoption of Wi-Fi hotspots in public places is supporting the market growth. The presence of a well-developed network infrastructure and 4G network also promotes the adoption in this region. Moreover, supportive government initiatives in the region for the development of connected public infrastructure also act as major drivers in the region. For instance, in 2016, the UK government launched the GovWifi initiative to replace the existing network in government offices with a single secure Wi-Fi Hotspot network.
 

Asia Pacific Wi-Fi hotspot market is anticipated to attain an annual growth rate of more than 15% during the projected timeline due to the widespread adoption of smartphones devices and a large number of internet users. Digitalization initiatives undertaken by the government of developing countries also augment the demand for Wi-Fi hotspots in the region. For instance, the Indian government along with Google is planning to deploy more than 400 Wi-Fi hotspots at railway stations across the country.