Technology

WiMax: Get On or Get Left Behind

March 11, 2006

The WiMAX equipment market rocketed last year, with revenues growing 759% from a minimal amount in 2004 to $142.3 million in 2005, according to a new report from Infonetics Research.

The WiMAX equipment market will continue to grow dramatically over the next few years, and Infonetics expects that it will reach $1.6 billion in 2009, following a 5-year compound annual growth rate of 139%. Revenues in the fourth quarter of 2005 alone reached $46 million, representing 33,000 units shipped, following certification of the WiMAX standard. Base station sales accounted for 47% of quarterly revenues, while 53% came from sales of customer premise equipment.

“Thirst for broadband is driving demand for more bandwidth, with enterprises connecting more sites and service providers connecting more POPs, WiFi hotspots, and increasingly, 3G base stations,” Infonetics analyst Richard Webb said in a statement “They need to do this cheaply and wired solutions are not always available or cost-efficient. That leaves WiMAX with a big future, as it offers a viable wireless solution to growing broadband connectivity and backhaul demands.”

While WiMAX burst on the scene as the dominant wide-coverage broadband wireless access technology in 2005, the outdoor wireless mesh access equipment market grew just as energetically as organizations and municipal governments provide public wireless access. Wireless mesh revenues grew 1,114% last year to reach $110 million.

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