Today’s market size is the amount that was spent in the United States on Internet access in 2005 and in 2012. The increased spending from 2005 to 2012, after inflation, was 154% while the increased penetration of Internet access as a percent of the U.S. population grew by only 19% (from approximately 68% to 81%). Clearly, something other than a rising rate of Internet connectivity in the population is behind the rapidly rising national expenditure on Internet connectivity. The increased expenditure is most likely related to the changing infrastructure used to access the Internet. Users are shifting from dial-up connections to more costly, higher speed connections such as DSL (Digital Subscriber Line), Cable Internet access, Satellite Internet access and mobile broadband via cell phone service.

Geographic reference: United States
Year: 2005 and 2012
Market size: $29.7 billion and $80.7 billion respectively
Sources: (1) “Table 2.4.5 Personal Consumption Expenditures by Type of Product,” National Income and Product Accounts Tables, (NIPA), U.S. Bureau of Economic Analysis, August 7, 2013, available from the BEA web site here. (2) “Percent of Individuals Using the Internet 2000–2012,” ITU, available here.
Original source: U.S. Department of Commerce, Bureau of Economic Analysis, International Telecommunications Union (ITU), Federal Communications Commission (FCC)
Posted on January 14, 2014