THE HOTSPOT market is staging a come back, due in large part to Wi-Fi enabled handsets, renewed interest from communication providers, and increased usage from business and leisure users, says In-Stat.
The market research firm says that Wi-Fi handset shipments have exploded over the past year, and will continue to show strong growth over the next several years. As a percentage of total connects, Wi-Fi enabled handhelds increased from 20% in 2008, to 35% in 2009. By 2011, handhelds are anticipated to account for half of hotspot connects.
“The ubiquity of Wi-Fi has created hotspot coverage as an expected amenity at many places of business,” said In-Stat analyst Frank Dickson, in the press release. “While consumer or leisure users do not often carry a laptop, they do have Wi-Fi enabled handhelds and are using these devices to access hotspots. This, coupled with the service being bundled with mobile plans, is making hotspot access much more consumer-oriented compared to the service’s former business focus.”
In its research report Wi-Fi Hotspots: Cellular Handsets and Portable Devices Drive a Market Renaissance, In-Stat said that the predominance of mobile carriers in the hotspot market resulted in a promotion of Wi-Fi enabled handset devices on their networks. It also predicted that new dual-mode Wi-Fi phones, and growth in content download applications and VoFi, will drive usage of handheld devices over the coming years.
Recent research by In-Stat also found the following:
– Hotspot usage is estimated to increase by 47%, bringing total worldwide connects to 1.2 billion;
– Wi-Fi handset shipments increased by over 50% from 2007 to 2008 as a result of increased phone functionality, falling price points, and carrier promotion;
– Shipments of Wi-Fi-enabled entertainment device, such as cameras, gaming devices, and personal media players, will increase from 108.8 million in 2009 to 177.3 million in 2013.
