According to the Telecommunications Industry Association (TIA), Wi-Fi and WiMAX infrastructure revenues for the U.S. market are forecast to reach $5.2 billion and $115 million by the end of 2005, respectively. The Wi-Fi market will continue to grow as the number of hotspots proliferates, and the emerging WiMAX equipment market would also add to market growth. TIA expects revenues from capital spending on Wi-Fi and WiMAX within the U.S. to reach an estimated $22.3 billion in 2005, rising to $29.3 billion by 2008, at a compound annual gain of 7.1 percent. Spending on Wi-Fi services in the U.S. reached $21 million in 2004 and the TIA expects spending to increase to $45 million in 2005, rising at 99.9 percent CAGR to $335 million by 2008. The number of U.S. Wi-Fi hotspots increased from 3,400 in 2002 to 21,500 in 2004. The TIA expects that the number of Wi-Fi hotspots to rise from 32,800 this year to 64,200 in 2008, rising at 31.5 percent CAGR.
Two years after ChatGPT captured the world's imagination, there's a dichotomy in the enterprise artificial intelligence (AI) market. On one side, technology vendors are making unprecedented investments in AI infrastructure and new feature capabilities. On the other, there's measured adoption from customers who carefully weigh the AI costs and proven use case benefits. Artificial Intelligence Market Development The scale of new investment is significant. Cloud vendors alone were expected to invest over $150 billion in capital expenditures in 2024, with AI infrastructure being the primary driver. This massive bet on AI's future is reflected in the rapid growth of AI server revenue. Looking at just two major players - Dell Technologies and HPE - their combined AI server revenue surged from $1.2 billion in Q4 2023 to $4.4 billion in Q3 2024, highlighting the dramatic expansion. Yet despite these investments, the revenue returns remain relatively modest. The latest TBR resea...