Driven by rapid growth in the next-generation 4G wireless technology known as Long Term Evolution (LTE), the overall market for mobile communications equipment is expected see a double-digit growth this year, according to an IHS iSuppli Wireless Systems Market Tracker report from IHS.
Factory revenue for the mobile communications market is expected to touch $398bn in 2012, an increase of 17% from $340.8bn last year.
Though it was less than growth of 32% posted in 2011, the market is not showing any decline, according to the research firm.
IHS expects factory revenue of mobile communications equipment to surpass the half-trillion-dollar mark by 2015.
IHS senior principal analyst for wireless systems Francis Sideco said LTE provides much faster access speeds and lower latencies than current 3G technologies, making real-time applications like video streaming and multiperson gaming not only possible, but usable.
"Because of this, both consumers and wireless providers are embracing LTE. The transition to LTE is driving growth both on the consumer and infrastructure ends of the wireless business in 2012 and beyond," added Sideco.
It is also expected that the revenue for 4G cellphones in 2012 will rise by 372% to $21.7bn, as against $4.6 billion in 2011.
IHS, however, sees the expansion of the mobile 3G handset field to slow to 17%, though revenue currently stands at $180bn.
