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Wireless Data, Wireless IP, and Vertical Markets


a market research report

Report Excerpt

Market Segmentation

Table of Contents

Press Release

Pricing Information

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Nine industries want your service...and they’ll spend more than $7.6 billion on wireless data services by 2006. Can you afford not to know the specific trends affecting the businesses that will be your best customers?

This is the only market research study to go beyond forecasting the total value of wireless data services to examine expenditures of the nine industries driving the marketplace:

  • Utilities

  • Health Care

  • Transportation 

  • Communications

  • Wholesale Trade

  • Retail Trade/POS

  • Professional Business

  • Durable Manufacturing

  • Financial/Insurance/Real Estate

Don’t risk rolling out wireless data services without knowing how key industries will benefit from wireless applications and how much they will be willing to spend.

Wireless Data, Wireless IP and Vertical Markets shows which industries are growing the fastest, have the largest percentage of wireless data subscribers, and will spend the most on wireless data solutions over the next five years.

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    Report Excerpt

    The Wireless Workplace

    The typical American workplace is moving beyond the cubicle, a computer and a telephone.  Today, over 48 million workers have jobs that require them to be on the road much of the time and away from their traditional base of operation.  Many business professionals are accessing data via their palm computer while stuck in an airport terminal; they call clients on a cell phone while hailing a cab for their next appointment.  The mobile workforce includes not only business professionals but the more traditional road warriors, such as truck drivers, utility workers, health care providers, insurance claims adjusters and police officers.  Like the business professional, these workers are accessing data and the Internet in their cars, vans, and trucks via wireless devices.  They are sending instant messages and checking information via their cell phones.

    The growing mobility of the US work force is driving the demand for wireless data services and wireless Internet connection.  Over 15 million people used personal digital assistants (PDAs) in 2000, according to some industry analysts.  Insight estimated that 87.9 million people subscribed to cellular, personal communication services (PCS) and enhanced specialized mobile radio (ESMR) in 2000.  Of the 87.9 million subscribers, 45.9 million were business subscribers and 42 million were residential. 

    The introduction of new wireless Web phones transforms ordinary-looking, affordable mobile phones into pocket-sized Internet-powered computing devices capable of sending and receiving e-mail as well as grabbing snippets of information from selected Internet sites.  Developments like this will drive the data traffic on the wireless network as Internet-enabled phones and services proliferate over the next few years.

    The Growth of Wireless Data

    As data traffic increases, Web sites offering access for hand-held devices should also increase, leading mobile phone users to switch from voice-only handsets to wireless Web phones.  The software code inside the phone includes a minibrowser that displays text from Web pages specifically designed for the limited screen space in hand-held devices.  One barrier to the growth of the wireless Internet could be the shortage of spectrum.  The government is planning a huge licensing auction in 2002 for wireless providers who claim these licenses are crucial to the development of wireless technology. 

    Corporate Portals 

    Corporate portals are also changing by moving beyond serving only as an e-mail tool.  Companies are now designing their portals to facilitate internal communications, provide access to office applications and corporate database functions, and foster communications to increase and to enhance customer relationships, customer service, and to increase profits.  In some cases, companies are even creating options that help employees balance their work/life schedules.  Site enhancements provide features that enable employees to remotely access corporate databases and perform routine business functions from the field.  

    As the office becomes increasingly virtual, the corporate portal will become the closest thing many workers will have to a community of peers, and the possibilities are limitless.  For employers it is an efficient way to communicate with employees and boost morale; for employees, it may be the best way to solve the issues of work and family life as more employees are able to conduct business as they pick up their children from school. 

    The Wireless Vertical and Horizontal Markets

    To date, most wireless applications have focused on vertical industries with nine industries accounting for the majority of wireless data subscribers.  Insight has estimated the number of wireless data subscribers and total wireless revenue over the forecast period of 2000 to 2006 for each of the nine vertical industries.  The industries are:

    • Transportation
    • Utilies
    • Retail Trade/Point of Sale (POS)
    • Wholesale Trade
    • Financial/Insurance/Real Estate
    • Health Care
    • Communications
    • Professional Business
    • Durable Manufacturing

    While five to 25 percent of the employees in these industries will use wireless data applications this year, by 2006 this figure will double to an estimated 20-40 percent depending the specific industry. 

    In terms of wireless revenue, the financial/insurance/real estate, transportation and professional business industries will generate the greatest revenue of all nine industries.  Several business trends are driving the wireless revenue growth for the financial industry.  Among them are direct selling of financial products such as stocks and bonds via the Web and call centers; wireless access of bank accounts; and a push toward transacting as much business as possible over the Internet.

    In addition to the growth of the vertical wireless market, Insight believes the horizontal market will become increasingly important.  The need to improve productivity across all businesses will fuel the explosion of horizontal wireless applications.  The trends toward increased bandwidth, standardization of protocols, interoperability across operating systems, and enhanced content presentation will expand the utility of wireless horizontal applications for business. 

    The fastest growing horizontal enablers include: 

    • E-mail, Database Query

    • Field Service and Sales Automation

    • Information-Based Systems

    • Location-Based Systems

    • Messaging Transactions

    • Vehicle Location and Positioning

    • Accessing Web Portals

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    Market Segmentation


    • Wireless Data Subscribers
      • by % of workers
      • by total subscribers
        • Transportation
        • Utilities
        • Retail Trade/ Point of Sale (POS)
        • Wholesale Trade
        • Financial/Insurance/Real Estate
        • Health Care
        • Communications
        • Professional Business
        • Durable Manufacturing

    • Total US Public and Private Wireless Data Subscribers
      • Subscribers to Public Data Network
        • Total Public Business Cellular Subscribers (Voice and Data)
        • Public Data Network Subscribers
      • Subscribers to Private Data Networks
        • ARDIS (Motient Network)
        • Ram Mobil Data/Mobitex (Cingular)
        • Metricom
        • Transportation/GPS

    • Total US Wireless Data Revenue
      • Wireless Revenue
        • Business
        • Residential
      • Voice (as % of Business Revenue)
      • Data (as % of Business Revenue)
      • Wireless Data Revenue for Business

    • US Wireless Data Revenue
      • Transportation
      • Utilities
      • Retail Trade/ Point of Sale (POS)
      • Wholesale Trade
      • Financial/Insurance/Real Estate
      • Health Care
      • Communications
      • Professional Business
      • Durable Manufacturing

    Back to Top

    Table of Contents


    Chapter I

    1.1     The Wireless Workplace
    1.2     The Growth of Wireless Data
    1.3     The Wireless Vertical and Horizontal Markets
    1.4     Private Versus Public Wireless Data Networks

    Chapter II

    2.1     Background
    2.2     A Wireless Data Explosion
    2.2.1     Wireless Data Applications Issues
    2.2.2     Wireless Data Business Drivers
    2.2.3     Advantages and Disadvantages of Wireless Data Solutions
    2.2.4     Private Dedicated Data Networks     The Motient Network     Mobitex or RAM Mobile Data     Metricom’s Ricochet     MobileStar
    2.3     Wireless Data Market in the Future
    2.3.1     Limited Growth of Private Data Networks

    Chapter III

    3.1     Off-the-Shelf Solutions
    3.1.1     Circuit-Switched Data
    3.1.2     Cellular Digital Packet Data     CDPD System Architecture     CDPD’s Advantages
    3.2     The New Protocol Standards
    3.2.1     The WAP Standard     WAP Advantages     WAP Disadvantages
    3.2.2     Bluetooth     Bluetooth Specifications     Bluetooth Applications
    3.2.3     Voice Extensible Markup Language
    3.3     Wireless Device Operating Systems
    3.3.1     Windows CE
    3.3.2      Palm OS
    3.3.3      EPOC
    3.4     Wireless Data Modems
    3.4.1     Circuit-Switched Data
    3.4.2     Cellular Digital Packet Data and CSD/CDPD Modems
    3.4.3     Wireless Data without the Modem

    Chapter IV

    4.1     Enablers
    4.1.1     Electronic Mail     Tell Me By Email and WebFOCUS
    4.1.2     Corporate Database Query
    4.1.3     Synchronization
    4.1.4     Information-Based Services
    4.1.5     Location-Based Services
    4.1.6     Inventory and Package Monitoring
    4.1.7     Vehicle and Fleet Management
    4.1.8     Emergency Management
    4.1.9     Fraud Management
    4.1.10     Instant Messaging
    4.1.11     Messaging-Over-IP Wireless E-mail
    4.1.12     Messaging-Over-IP Short Message Services
    4.1.13     Messaging-over-IP Unified
    4.1.14     Smart Automobiles
    4.1.15     Accessing Web Portals
    4.2     Applications
    4.2.1     Dispatch
    4.2.2     Field Sales Applications
    4.2.3     Field Sales  and Service Automation
    4.2.4     Field Service and Logistic
    4.2.5     Mobile Office
    4.2.6     Point-of-Sale

    Chapter V

    5.1     Introduction
    5.2     Vertical Applications
    5.2.1     Financial     Banking     Insurance     Brokerage Houses
    5.2.2     Health Care     Clinical Applications
    5.2.3     Public Safety/Law Enforcement
    5.2.4     Transportation
    5.2.5     Fixed Utility/Telemetry

    Chapter VI

    6.1     Overview
    6.2     Horizontal Application Vendors
    6.3     Vertical Market Vendors
    6.3.1     Financial
    6.3.2     Health Care
    6.3.3     Public Safety
    6.3.4     Transportation 
    6.4     Middleware

    Chapter VII
    7.1     Overview
    7.2     Report Methodology
    7.3     Business Trends
    7.3.1     Wireless Use for Vertical Markets 
    7.3.2     Private versus Public Data Networks 
    7.3.3     Three Vertical Markets Account for Majority of Wireless Expenditures 
    7.4     Technology Trends 
    7.4.1    Convergence of Wireline, Wireless, Voice, and Data
    7.4.2    Convergence of the Internet and Mobile Telephony 
    7.4.3    Increasing Work Force Mobility 
    7.4.4    Cost-Efficient Remote Data Collection
    7.4.5    Intelligent Transportation Systems
    7.4.6    Wireless Internet 
    7.4.7    Next-Generation Technologies     Second Generation (2G)     Second Generation Plus (2G+)     Third-Generation Cellular (3G) 
    7.4.8     New Hardware Technologies 
    7.4.9     New Software Technologies

    Table of Figures

    Chapter I
    I-1     Total US Wireless Data Revenue for Business, 2000-2006 ($Billions)
    I-2     US Wireless Data Revenue by Vertical Market, 2001 ($Millions)
    I-3     Total US Public and Private Wireless Data Subscribers, 2000-2006 (Thousands)

    Chapter III
    III-1     CDPD Network Architecture

    Chapter VII
    VII-1     Total US Wireless Data Revenue for Business, 2000-2006 ($Billions)
    VII-2     Wireless Data Revenue for Select Industries, 2000-2006 ($Millions)

    Table of Tables

    Chapter II
    II-1     Six Wireless Providers and Their Data Network Characteristics

    Chapter III
    III-1     CDPD versus Circuit Switching Comparison
    III-2     Comparison of CDPD versus Circuit Switching with Various Applications

    Chapter IV
    IV-1    Common Dispatch Application Features
    IV-2    Wireless Application Costs for a Limousine Service, 2001 

    Chapter V
    V-1    US Home Health Care Telemedicine Market, 1998-2005 

    Chapter VI
    VI-1    Advantex-Enterprise Gateway Connectivity to Various Networks

    Chapter VII
    VII-1    Wireless Data Subscribers for Selected US Vertical Markets, 2000-2006
    VII-2    Total US Public and Private Wireless Data Subscribers, 2000-2006 (Thousands)
    VII-3    Total US Wireless Data Revenues, 2000-2006 ($Billions)
    VII-4    US Wireless Data Revenue and Percent by Vertical Market, 2000-2006 ($Millions) 

    Glossary of Terms

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    Pricing Information


    Hard Copy Price
    $ 799

    Electronic Copy Price
    (PDF License Descriptions)
    $ 939 Single-User Printable PDF

    $ 1399 6-Seat Printable PDF

    $ 2000 Unlimited Corporate-Wide Distribution

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