Worldwide wireless market growing at 2.5% annually

Feb. 1, 2005
According to a new report from Business Communications Company entitled "Worldwide Wireless Infrastructure Expenditures"...
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According to a new report from Business Communications Company entitled "Worldwide Wireless Infrastructure Expenditures," the worldwide wireless infrastructure expenditure is currently estimated at $177.5 billion. Expected to grow at an average annual rate of 2.5%, the market will reach $201.2 billion by 2009.

The report lists the revenue into four principal sections: wide area network (WAN) hardware (cellular, satellite, and cable-modem products), wireless local area networks (WLANs), end-user devices (personal digital assistants, cell phones, notebook computers), and business software (enterprise resource planning, billing, and security products). The numbers included in these areas focus only on purchases made to support wireless connections, and therefore are subset categories of broader categories like PDA and WLAN sales.

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Though it is by far the smallest of the four sections, WLANs is also the fastest-growing, with an average annual growth rate of 12.3% from 2004 through 2009. The researcher says WLANs are entering a rapid ramp-up phase, where technologies move from tools for technology-savvy individuals into the consumer market. It estimates the total worldwide WLAN market for 2004 at $2.31 billion, and projects that number to grow to $4.125 billion in 2009.

The two largest segments in the market are WAN hardware and end-user devices. WAN hardware will see an average annual growth rate of 1.8%, as carriers move to 3G technology and begin to deliver more video transmission. End-user devices account for more than half of the revenue generated, and represent an area of significant innovation. Its growth rate is 2.7%, a low number thanks mostly to price pressures found in consumer markets.
-Patrick McLaughlin

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