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*** Market Review & Forecast and 5G Survey Released Today ***

New TIA Survey Sheds Light on How, Where and When 5G Development will Occur

ARLINGTON, VA (June 1, 2015) – The Telecommunications Industry Association (TIA) today released its annual ICT Market Review & Forecast (MR&F), the industry’s most comprehensive data review and analysis.  The report, announced at TIA2015: Network of the Future, shows that U.S. information and communications technology (ICT) spending grew 6.6 percent in 2014 – the second year in a row in which domestic spending growth outpaced international spending growth, which declined year-over-year.  The MR&F also found that intelligent transportation spending jumped 56.8 percent in 2015 and will continue to lead all specialized services over the next four years.

TIA is the leading association representing the manufacturers and suppliers of high tech communications networks, and the 2015 MR&F provides extensive industry data, with forecasts through 2018, about domestic and international spending and usage of wireless and wireline communications, specialized services (cloud computing, M2M, cybersecurity, etc.), enterprise networks and more.  TIA also today released a recently conducted survey of mobile operators, providing exclusive insight about their expectations for the development of 5G.

Copies of the MR&F and the 5G survey are available for members of the media.  To request a copy, please contact Farrah Kim at farrahkim@rational360.com or (202) 568-8986.

Data is Driving U.S. Spending

According to the MR&F, data use continues to surge and is the driving force behind U.S. spending growth.  U.S. wireless data traffic more than doubled in 2014 and will be more than six times higher by 2018.  As a direct result of this soaring data demand, network backbone infrastructure spending climbed 25.3 percent last year.  Overall telecommunications network equipment spending rose 8.9 percent in 2014, totaling $279.3 billion.

At the same time, data is fueling increased enterprise spending on specialized services – most notably, cloud computing, M2M and data center construction.

ITS Sets the Pace, While M2M and Cloud Keep Growing

The MR&F found that U.S. spending on Intelligent Transportation Systems (ITS) more than doubled between 2012 and 2014, reaching $13.5 billion in 2014 – a 56.8 percent increase over 2013.  The MR&F predicts ITS will lead all other specialized service categories over the next four years, with spending tripling by 2018 to $39 billion.

Other specialized services will continue to see strong gains. Spending on cloud computing climbed 20.1 percent in 2014 to $67.5 billion, and will reach $117 billion by 2018 – a 14.7 percent compound annual growth rate.  M2M spending increased 31.6 percent in 2014 to $11.2 billion, and will reach $22.6 billion by 2018 – a 19.1 percent compound annual growth rate.

Other MR&F Highlights

• Overall U.S. telecommunications spending, which totaled $1.34 trillion in 2014, will grow at a compound annual rate of 5.5 percent over the next four years, reaching $1.66 trillion in 2018.
• Overall global telecommunications spending, which totaled $5.4 trillion in 2014, will grow at a compound annual rate of 4.7 percent over the next four years, reaching $6.5 trillion in 2018.
• In 2014, U.S. consumer spending on wireless data overtook voice spending, and by 2018 will account for 67 percent of total wireless spending.
• Wireless penetration in the U.S., which surpassed 100 percent in 2013, continues to grow – climbing 4.2 percent in 2014.
• Fueled by LTE availability, smartphone sales nearly tripled between 2010 and 2013, however that growth slowed to 6.1 percent in 2014; unit sales will grow just 1.1 percent on a compound annual basis over the next four years.

5G Survey Finds IoT and Broadband Development will Drive Development

As part of its effort to provide essential industry intelligence, TIA also released the results of a 5G survey, which looks at mobile operators’ expectations for future 5G networks and services.  The information is particularly important as the industry works to understand how 5G will be used and develops performance requirements and business models. Among the key findings:

• Operators believe mobile broadband capacity (76 percent selecting this option) and the Internet of Things (74 percent) are the two primary drivers for 5G development.
• Operators strongly believe Asia will lead 5G development (71 percent selecting this option), followed by North America (52 percent) and Europe (45 percent).
• One-third of respondents expect their company to launch commercial service before 2021; the majority do not expect full commercial service until after 2022.

The 5G Survey results are included in TIA’s new 5G White Paper, which was conducted in conjunction with Heavy Reading and sponsored by InterDigital. It is available by contacting TIA at tiaonline.org or Florence Sumaray at fsumaray@tiaonline.org.

The MR&F is compiled annually by TIA and used as a key resource for industry executives, government policymakers, analysts and the media.  The report provides a global industry overview along with chapters that offer a deep-dive into specific industry segments.  The MR&F also features a “Major Trends” chapter, providing in-depth analysis of significant developments, including advancements in M2M, cybersecurity and sustainability.  The report is available through tiaonline.org.