WHILE VENUE GROWTH in Wi-Fi hotspots continues to be strong, usage growth can only be described as phenomenal. According to a new report from In-Stat, worldwide annual hotspot connects are on track to grow to over 11 billion by 2014.
Growth in the hotspot market is largely being driven by wireless and broadband providers embracing Wi-Fi as both a competitive differentiator and enhancement to core services. But the report Worldwide Wi-Fi Hotspot Usage Soars, but is Model Sustainable? examines whether that trend will last.
“Venue growth will begin to wane over the next several years as operator networks reach a critical mass and desirable locations become saturated. Growth in usage is expected to remain strong over the forecast period,” said market analyst Amy Cravens, in the press release. “In the past, usage growth has largely been tied to venue growth, i.e., the more venues the more usage, and the rate of usage per venue was fairly constant. Going forward, however, usage growth will be driven by increases in connects per day at each venue. This is a result, at least in part, to a broadening base of Wi-Fi-enabled devices.”
Some of the research findings include:
– Worldwide annual hotspot connects, or sessions, will reach over 2 billion by the end of 2010 with annual hotspot connects anticipated to grow to over 11 billion by 2014;
– Asia/Pacific will have about one quarter of the worldwide hotspot venues over the forecast period;
– By 2012, handhelds are anticipated to account for half of hotspot connects;
– The total worldwide hotspot market size will swell to 319,200 venues by year-end;
– Annual venue growth is expected to remain strong over the next several years, but will begin to slow in latter forecast years; and
– Europe and North America are the largest hotspot markets based on usage (annual connects).
