Wireless, Wi-Fi, RFID & Cellular Industry Market Research

Wireless communications, including such fields as mobile entertainment, RFID, mobile banking and cellphone service, continues to be one of the hottest of the world’s industrial sectors.  There were approximately 8.4 billion global wireless communications subscriptions by mid- 2019, according to Plunkett Research estimates, GSMA Intelligence estimates that the number of global subscriptions will grow to 8.9 billion by 2020.  (Since some people have more than one subscription, the number of individual subscribers is significantly lower.)

According to IDC, 1.4 billion new smartphones were sold worldwide during 2018—making the smartphone the fastest-selling single item of consumer electronics by far.  These handsets are purchased by new users (those who are getting mobile service for the first time ever), but more often by those who are upgrading to newer, more powerful phones.  At a very rapid pace, people around the world have upgraded to smartphones.

Most new smartphones feature a dizzying array of advanced features.  In addition, smartphones and tablets are internet-capable, typically able to take full advantage of high speed access on 4G networks.  This means that small, lightweight smartphones and tablets can do much of the work of a standard desktop PC.  Consumers love the flexibility and capability of smartphones, and by some estimates spend an average of three hours per day using them in the U.S.  When considering this development, it is important not to overlook the way that smartphones have disrupted traditional business sectors.  For example, thanks to the powerful cameras built into smartphones, the number of photos taken by consumers has soared at an astonishing rate, while sales of traditional cameras have plummeted.

Plunkett Research estimated that there were 424.1 million total wireless connections in the U.S. by 2019.  Total U.S. wireless service company revenues were about $120 billion during 2018, according to Plunkett Research estimates.  Market penetration of wireless service subscriptions in the U.S. represented 120.7% of the population at year-end 2017 (up from only 120.6% the previous year and 79% at the end of 2006), according to the CTIA (Cellular Telecommunications Industry Association).  American subscribers spend an average of $80 monthly on their mobile account  bills.  (In 1998, the average monthly bill was $98.02, but intense competition forced prices to plummet.)  By 2019, 83% of U.S. cellphone users were on smartphones, according to Plunkett Research estimates, compared to only 61% in early 2013. 

Consolidation of wireless service providers has been strong worldwide.  In July 2013, for example, Japan’s Softbank merged with America’s Sprint Nextel, creating a powerful new force in the American market, and giving this successful Japanese firm a solid foothold in the U.S.  More recently, Sprint and competitor T-Mobile were planning a 2019 merger.  The combined businesses intend to invest approximately $40 billion in infrastructure by 2022, developing what they expect to be one of the first nationwide 5G networks.  As of July 2019, the companies were having difficulty settling the final details, which may delay the merger.

Of great importance is the interest in mergers between wireless carriers and other types of communications firms.  A $49 billion merger between AT&T (a leader in both wired and wireless telephony) and DirecTV (a big name in satellite TV services) was completed in July 2015.  The strategy for such mergers is to add to the customer base while creating the ability to offer bundled subscription plans with multiple features and services.  (More recently, AT&T acquired Time Warner, giving it control over vast amounts of film and television content, including content that can be displayed on mobile devices.)

Worldwide, cellphone use continues to experience extremely rapid growth in emerging and developing markets.  China has over 1.5 billion wireless subscriptions, with India at about 1.2 billion.  In developing nations, mobile phone service is bargain-priced.  Handsets are particularly inexpensive in some regions.

Globally, smartphone-based electronic games (“gaming”) and mobile entertainment such as music and video continue to enjoy soaring growth, along with the increasing use of social media on mobile devices.  Smartphones are rapidly becoming everyday banking and payment devices, particularly in Japan, Korea and parts of Europe; that trend will grow in the U.S. over the mid-term.  (In some cases, payments are made using a technology known as near field communication (NFC) to enable smartphones as payment devices when close by a cash register or vending machine.)  Mobile banking is one of the most popular services for cellphone owners in the emerging world, as wireless innovation is bringing banking services to remote areas for the first time ever, while banking apps are extremely popular in developed nations.

The wireless sector incorporates a great deal more than cellphone services, ranging from satellite-based communications to vast wireless Wi-Fi networks in corporate and public spaces.  There is no end in sight to the rapid acceleration of wireless.  RFID (radio frequency ID tags used to track inventory) equipment prices are plummeting while adoption is growing on a global basis.  Practical uses for smartphones are growing endlessly.  Applications for remote wireless sensors of all types (often referred to as the Internet of Things or IoT) are about to soar as technologies improve and costs decline.  The most important wireless industry sectors for future growth and advancing technologies include self-driving vehicles, management of “Smart Cities,” sports, entertainment, energy management and monitoring, advertising and health care.