Features

WiFi phone market soaring to USD 3.7 billion in 2009

The worldwide WiFi phone market increased 116% between 2004 and 2005 to USD 125.5 million, and is projected to more than double in 2006 as enterprises and consumers slowly but steadily continue deploying voice over wireless LANs, says Infonetics Research in its latest report, WiFi Phones. The worldwide Wi-Fi phone market was worth USD 102.5 million in 2005.

Infonetics projects WiFi phone revenue to more or less double, and even nearly triple, every year through 2009, when the worldwide market will reach USD 3.7 billion.

WiFi, which was initially widely used only as an enterprise application, will eventually be used by become more popular with consumers as well, having enormous growth potential as part of a VoIP service bundled with broadband connections.

"Single-mode WiFi VoIP handsets continue to penetrate the enterprise market, and with D-Link, Linksys, and NETGEAR all launching products, we expect increasing adoption in the consumer market, too," said Richard Webb, directing wireless analyst with Infonetics Research.

The research firm sees the real growth coming in from the dual-mode WiFi/cellular handsets.

"With the increased activity from both fixed and mobile operators to deliver dual-mode services to the mass market, often as part of a more far-reaching fixed-mobile convergence strategy, the long-term forecast for dual-mode WiFi/cellular handsets is strong, assuming these handsets come down in price to sub-100 dollars or euros, said Webb," said Webb.

In 2005 SpectraLink led the overall WiFi market, followed by Cisco and Motorola in the third place.

Total WiFi phone units grew 151% between 2004 and 2005 and will grow 182% between 2005 and 2006.

In 2005, the maximum revenue of the WiFi cellular handset is generated from Asia Pacific at 49 percent of dual-mode WiFi/cellular handset revenue came from Asia Pacific. North America is second at 27 percent, followed by EMEA at 22% EMEA and CALA at 2 percent. But this shifts dramatically by 2009, when much more revenue will be generated in EMEA.


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