Wireless Infrastructure and Application Services Market Presents Opportunities Although Obstacles Remain, IDC Says
FRAMINGHAM, MA – APRIL 23, 2003 – A new report from IDC finds the marketplace for wireless infrastructure and application services (WIAS) is gaining considerable momentum and has significant long-term potential. Today the WIAS market remains one of the most complex in the way that end users approach vendors regarding the mobility concept and how they ultimately want to acquire the benefits of a mobile solution. Part of this complexity has been brought on by the industry at large and its myriad of access devices, wireless protocols, standards bodies, and regulators. Yet even with these inhibitors, IDC forecasts that the worldwide wireless and application services market will increase from $31.1 billion in 2002 to $68.4 billion in 2007, representing a compound annual growth rate (CAGR) of 17.1%.
"While relying to a large degree upon advances in wireless technologies, standards, and mobile applications, the wireless marketplace increasingly depends on trusted third-party services organizations to help firms fully embrace these elements collectively," said Richard Dean, program director for Wireless Infrastructure and Application Services at IDC. "By developing a cohesive message focused on the inherent possibilities that mobility offers, consulting firms, services organizations, and mobile operators will continue to play a vital role in helping organizations and individuals directly engage the business process transformation framework – a strategic plan that reshapes the way in which computing and communications will occur."
The following key findings are presented in this IDC report:
Approximately 43% of spending on wireless infrastructure and application services originated in the Americas region in 2002. This share will remain fairly consistent and reach 45% in 2007.
International opportunities will continue to expand, especially in areas with low existing penetration rates, but where rapid economic growth is expected, such as in Latin America, Eastern Europe, and Asia/Pacific. Success in international markets will depend on the ability to overcome not only technological hurdles, but also regulatory, economic, geopolitical, and cultural obstacles.
Among U.S. industries, communications and media, retail, logistics, and health care will embrace WIAS at the fastest rate and with the largest level of expenditures. Collectively, U.S. industries are expected to spend $25.6 billion by 2007 representing a five-year CAGR of 16.9%.
As mobile networks grow in both scope and complexity, opportunities will continue to emerge in the area of consulting, integration, andmanaged services, including the measurement and planning of users' network capacity needs and the design of appropriate networks to meet these needs.
This IDC study, Worldwide and U.S. Wireless Infrastructure and Application Services Forecast and Analysis, 2003-2007: The Catalyst for Business Process Transformation (IDC #29007), examines the worldwide and U.S. markets for wireless infrastructure and application consulting, integration, and managed services from 2003 through 2007. The document presents market sizing and five-year growth forecasts for 20 discrete service activities. The document also includes top-level segmentation by worldwide region and vertical industry, and offers a discussion of the major market trends that impact demand for such
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