Report: Wireless industry to generate $235.5B in equipment revenues

Industry market research firm iSuppli Inc. reports that due to the continued growth in the cell phone market, worldwide factory equipment revenues associated with the wireless industry will hit $271.3 billion in 2011. That growth will be on top of the $235.5 billion generated in 2010, which was a 7.9% increased compared with the $218.2 billion posted in 2009.
“Continued revenue growth seems assured in the years ahead for mobile communications, a wide-ranging market encompassing cell phones, cordless phones, battery chargers, mobile infrastructure, mobile and fixed broadband access devices and wireless LAN equipment such as routers,” the report noted.
ISuppli added that total mobile communications factory equipment revenues will surge to nearly $360 billion by 2014.
As for a break out of segments, iSuppli predicts 3G handsets will generate $86.4 billion in revenues this year, which would be a 34.6% increase compared with 2009. The firm also forecasts that 1G and 2G device sales will combine for $55.6 billion in revenues this year compared to $68.3 billion in 2009.
While still trying to find its footing, iSuppli predicts the “4G” device segment will see revenues surge from $11 million in 2009 to $1.3 billion this year.
“Among mobile handsets, 3G continues to be the dominant technology in 2010 and likely will maintain that distinction beyond 2014,” said Francis Sideco, principal analyst for wireless research at iSuppli. “For their part, wireless carriers – while wrestling with the issue of heavy data traffic on their networks – are attempting to maximize investments in existing 3.5G and 3.75G technologies through incremental network upgrades. At the same time, carriers are deploying next-generation 4G technologies such as long term evolution, to begin in earnest by 2011.”
ISuppli added that total cell phone shipments will increase 11.7% this year reaching 1.29 billion units with smart phones singled out as the fastest growing with a projected increase of 40.6% this year. The firm added that its total cell phone shipments forecast does not include “gray-market” devices that are especially popular in China and could contribute $8.9 billion in revenues to the industry this year.