Worldwide Wireless and Mobile Infrastruture Services Market to Reach $37.42 Billion by 2006, IDC Reveals

FRAMINGHAM, MA – MAY 28, 2002 – While wireless and mobile deployments around the world resulted in productivity gains for thousands of organizations and millions of users in 2001, the industry as a whole was sorely tested, a new report from IDC reveals. For many vendors competing in the U.S. wireless and mobile infrastructure services marketplace, the year began with an economic recession, which marked the end of the longest economic expansion in this nation's history and was followed shortly by September 11. Among the other maladies affecting the marketplace were broad business spending cutbacks, financial difficulties encountered by wireless network providers, differing standards, broadband overcapacity, and concerns about security.

 

Despite these industry challenges, IDC forecasts the worldwide market for wireless and mobile infrastructure consulting, integration, and management services to rise to $37.42 billion by 2006, representing a compound annual growth rate (CAGR) of nearly 15%.

A key factor driving the demand for various wireless and mobile consulting, integration, and managed services is the growth of the public wireless LAN (or visitor-based networks), IDC’s report shows.

"The deployment of Internet, intranet, extranet, remote access, and mobile networking infrastructure technologies has left end users at all levels of the corporate structure demanding increased network access to greater amounts of information from various remote locations – including airports, convention centers, and other points on the map," said Richard Dean, director if IDC’s Wireless and Mobile Infrastructure Services research program.

"As a result, Internet roaming is becoming more popular as more end users wish to access the Internet by using the network facilities and services of providers other than their ‘home providers’ We expect demand for Internet roaming services to increase for a number of reasons, including increasing numbers of Internet users and telecommuters worldwide, increasing mobility of the global workforce, and increasing importance of data communications in the business world."

This services-focused report, Worldwide Wireless and Mobile Infrastructure Services Forecast and Analysis, 2002-2006 (IDC #27101), examines the U.S. and worldwide markets for wireless and mobile infrastructure consulting, integration, and management services from 2002 through 2006. It presents market sizing and five-year growth forecasts for 16 discrete service activities, including top-level segmentation by worldwide region, vertical industry, and organizational size. The document also discusses the regulatory and technological issues as well as the customer demand patterns that influence spending in this market segment.

A complementary new product-focused report which examines the worldwide wireless local area network (WLAN) equipment market reveals that the emergence and adoption of WLAN technologies represents a significant departure from wired networks that have existed for decades. WLANs will impact network equipment in a similar way that mobile phones impacted the traditional voice network. Worldwide revenue for WLAN equipment in 2001 reached $1.45 billion, up 34.2% from 2000, and is expected to grow to $3.72 billion in 2006.

"Mobile connectivity is being driven by the acceptance of wireless devices and infrastructure both in and out of the enterprise," said Jason Smolek, research analyst, Enterprise Networks. "Entrenched data networking vendors, primarily those selling LAN switches, routers, and IP VPNs will integrate WLANs as part of their overall networking strategies."

There are four factors driving WLAN product adoption, IDC’s new report Worldwide Wireless LAN Equipment Market Forecast and Analysis, 2002-2006 reveals. First, new verticals such as education and retail, second, deployment in visitor-based networks such as airports and hotels, third, use in the SOHO/home networking space, and fourth, the introduction of 5GHz products (802.11a and HiperLAN/2). Large enterprises will drive spending later in the forecast period, though old economy processes like manufacturing and warehousing will still remain strong.

IDC’s new report Worldwide Wireless LAN Equipment Market Forecast and Analysis, 2002-2006 (IDC #26797) forecasts the worldwide wireless LAN equipment market through 2006, analyzing the key markets, industry, and technology trends that will impact the market’s development throughout the forecast period.

To purchase these documents, call IDC's volume sales hotline at 508-988-7988 or email jnagle@idc.com.

For additional information about IDC’s Wireless and Mobile Infrastructure Services research program, please contact Jill Toole at 508-988-6915 or at jtoole@idc.com For information about IDC’s Enterprise Networks research program, please contact Jon Guloyan at 508-935-4296 or at jguloyan@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.