Wi-Fi has become integral to the functioning of the U.S. economy and a necessity in Americans’ daily lives. Whether connecting at a coffee shop to work remotely, using smartphone data, enjoying AR/VR games at home, or leveraging emerging AI-driven applications, consumer appetite for more Wi-Fi-connected devices with data-intensive uses continues to grow.
A new report from ABI Research confirms the need for policymakers to allocate additional unlicensed spectrum to meet skyrocketing consumer demand for Wi-Fi.
Key industry trends identified in the report:
- Growing demand: The number of 6 GHz-enabled Wi-Fi consumer devices shipped annually to North America is projected to grow from 95 million in 2024 to 367 million in 2029 – an increase of 288% in just five years. Additionally, the embedded base of Wi-Fi devices with sensing capabilities will reach nearly 120 million in North America by 2030, putting more pressure on unlicensed spectrum that is being used for communications.
- Need for speed: By the end of the decade, a majority of U.S. households will be served with access points that support multi-gigabit Wi-Fi speeds (configured to use the latest 320 megahertz-wide channels). Annual North American shipments will reach 4 million this year, rising to 66 million by 2030.
- Continued innovation: Demand for next-generation consumer applications, like AI or wearable technology, is set to grow exponentially over the coming years. These technologies require 320 megahertz-wide channels to deliver enhanced speeds, greater capacity, and improved reliability.
- Consumer benefits: The U.S. has already made significant investments in wireline broadband infrastructure. It is imperative that Wi-Fi keeps pace with broadband access technology. Otherwise, slow Wi-Fi will act as a bottleneck and consumers will not realize the full benefits and economic returns on these high-speed broadband investments.
This research adds to a growing body of evidence highlighting an urgent need for more unlicensed spectrum. While cellular giants have made it clear they are awash in licensed spectrum and are attempting to offload licenses, Wi-Fi continues to carry up to 90% of all mobile device traffic. Indeed, a recent Opensignal report found that, even outside the home, people overwhelmingly (75-84%) rely on Wi-Fi instead of mobile networks.
The problem: The unlicensed spectrum of today will not be able to handle what consumers expect for the future: more devices that are more data intensive. In 2020, the FCC allocated additional unlicensed spectrum on the 6 GHz band—a reactive decision that provided much-needed relief to consumers from severe congestion on the 5 GHz band. With only three 320 megahertz-wide channels, the 6 GHz band simply cannot keep up with the rising demand identified in the ABI report.
The solution: It’s up to policymakers to ensure that Wi-Fi can continue delivering for Americans for years to come. If unlicensed spectrum is limited to existing channels on the 6 GHz band, the U.S. will forego tremendous economic benefits and shackle consumers to technologies of the past. The ABI report emphasizes that expansion into the 7 GHz band is a uniquely smart solution, as it’s well-suited for home networks, offers multiple 320 megahertz channels, and can connect to the 6 GHz band without disrupting existing wireless usage. Such a solution would help to ensure America can keep up with consumer demand and open the door for the next generation of innovative Wi-Fi technologies.
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