Saturday, 27 May 2017
The Wireless Market

THE STATE OF THE WIRELESS INDUSTRY: A TRILLION DOLLAR OPPORTUNITY

The Global Wireless Market Update - 2013

The global market has grown by 13.7% since 2008 with nearly 7 billion total connections and an additional 2 billion connections projected to be added by 2017.  In the beginning of 2012, more than 77 countries have passed 100% mobile phone penetrations per capita. Meanwhile the leading countries continue to push past 150% and past 175% and even yes, past 200% mobile phone penetration rate - as the UAE did becoming the first country with literally two mobile phone accounts for every living person of any age. 

3.2 billion people of the 7 billion on earth benefit from having a mobile phone. A further 700 million subscribers are expected by 2017, but this still leaves a huge potential for further growth.  In absolute terms Asia Pacific will add nearly half of all new connections between now and 2017, while 22% will be from Europe and North America combined.

Total Wireless Market 2012-2017Data continues to be a major area of growth for mobile operators with all regions showing impressive growth rates. In fact, total traffic volume in 2012 alone was higher than previous years combined and globally data is projected to grow by 66% p.a. through 2017.

Data growth is driven by the increased penetration of smartphones, in particular in emerging markets – and by increased data consumption per subscriber due to the faster download speeds and the uptake of data-hungry applications like video made possible by new technology such as 4G.

MOBILE DATA: The Rise of Tablets - Update 2013 

With new tablets being introduced in the 3rd QUARTER 2013, data shows that tablet shipments will now surpass those of personal computers. A report by research firm IDC predicts that for the first time more tablets will be shipped in the fourth quarter of 2013 than PC shipments; and, by 2015, annual tablet shipments will top PC shipments. By the numbers, tablet shipments are expected to reach 84.1 million units in the fourth quarter, while PC shipments will be 83.1 million. PC shipments are looking to drop by 10 percent for all of 2013.

Tablets have recently come a long way -- many now have speedy processors, razor-sharp HD screens, and heaps of apps. Competition in the tablet market has also become fiercely saturated with a whole host of new devices, from simple machines without a lot of bells and whistles to fancy hybrids toting tons of features.

While tablet shipments are on the rise, smartphones will continue to rule the market over the next few years. By 2015, IDC predicts 1.4 billion smartphones will be shipped, which will equal 69 percent of all smart connected device shipments worldwide.

Carrier Wi-Fi and Small Cell Markets Experiencing a Flurry of Activity

 The small-cell market is experiencing a flurry of activity, including mobile operators launching small cells and continuing to deploy picocells and microcells while vendors develop metrocell technologies for capacity offload. Several operators have now reported deployments with 100s of thousands of femtocells including:  

• Sprint (US) has reported over 1 million units during October 2012 and estimates indicate that it had deployed more than 1 million during end-2012. 
• Both Softbank and SFR have reported more than 100K units. 
• Vodafone has reported femtocell registered users in the “hundreds of thousands” in the UK. 
• Although AT&T has not reported its numbers directly, analyst estimates also put them near the 1 million mark.

—The Carrier WiFi and small cells infrastructure market will grow at a CAGR of 40% over the next five years eventually accounting fover $11 Billion in revenues by the end of 2018.  —The continued demand for mobile broadband services will play a critical role in maintaining the Carrier WiFi and small cell market’s growth, amid a growing demand of convergent, intelligent and vendor agnostic small cell platforms by Carriers.

Mobile Patents Seeing Significant Growth 

Mobile patent grants as a percentage of the total patent grants in a given year have risen significantly for the US market indicating the importance innovators attach to mobile in their business. In the US, one out of every five patent granted in 2012 was related to mobile. Less than a decade ago, this number was less than 10%. The European market has seen lower growth relative to the US market. Roughly one out of every ten patents granted in Europe are mobile related.

THE SMARTPHONE AGE: Smartphone Shipments exceed PCs

 

"Smartphones and tablets are fueling unprecedented demand for wireless data network capacity. Magnolia’s technology helps network operators meet this growing demand."

"Wireless devices present a great market opportunity for Magnolia's technology which can be embedded as a SOFTWARE solution that is relevant today as well as in the long term"
THE MOBILE DATA MARKET: Massive Data Growth Driving Carrier / Equipment Transitions

A Wireless operators are facing the near future with trepidation as rapidly growing data volumes are putting unprecedented stress on networks around the world in terms of bandwidth, coverage, capacity, and device performance. Specifically, high density areas (most cities) represent the biggest area of concern for wireless network operators. In these areas, networks run the risk of heavy data users congesting network and crowding out light data and voice users. Much of this demand for mobile data may be attributed to smartphones which have usage rates many times those of simple handsets, and new usage patterns (HD video conferencing, audio streaming, VoIP, real-time collaboration, over-the-air downloads and interactivity with apps) are fueling even bigger jumps in bandwidth consumption.

"Magnolia’s beam forming technologies dramatically increase performance in Smartphones/ iPads/ Tablets/ Lap-tops as well as Carrier-grade Wi-Fi and Small Cells resulting in an enhanced consumer experience"