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Global IP traffic is expected to reach 1.3 zettabytes per year or 110 exabytes per month by 2016. A fourfold increase from approximately 31 exabytes per month in 2011, according to networking giant Cisco.In its annual Visual Networking Index (VNI) Forecast (2011-2016), the vendor attributes the growth in IP traffic and service penetration to a number of factors, including: 

 

An increasing number of devices: IP TrafficThe proliferation of tablets, mobile phones and other smart devices as well as machine-to-machine (M2M) connections are driving up the demand. By 2016, the forecast projects there will be 18.9 billion network connections― 2.5 connections for each person on earth, ― compared with 10.3 billion in 2011. More Internet users: By 2016, there will be 3.4 billion users ― a 45 percent of the world's projected population according to United Nations.

  • Faster broadband speeds: The average fixed broadband speed is expected to increase nearly fourfold, from 9 megabits per second (Mbps) in 2011 to 34 Mbps in 2016.
  • More video: By 2016, 1.2 million video minutes―the equivalent of 833 days (or over two years) ―would travel the Internet every second.
  • Wi-Fi growth:  By 2016, over half of the world's Internet traffic is expected to come from Wi-Fi connections.

Regional IP Traffic Trends

  • By  2016, the Asia Pacific region is forecast to generate the most IP traffic (40.5 exabytes per month), maintaining the top spot over North America (27.5 exabytes per month), which generated the second most amount of traffic.
  • The fastest-growing IP-traffic regions for the forecast period (2011–2016) are the Middle East and Africa (58 percent compound annual growth rate, for 10-fold growth), and Latin America (49 percent CAGR, sevenfold growth).
  • For fastest-growing IP traffic at the country level, India is expected to have the highest IP traffic growth rate with a 62 percent CAGR from 2011 to 2016. In a second-place tie, Brazil and South Africa both have 53 percent CAGRs over the forecast period.
  • By 2016, the highest traffic-generating countries will be the United States (22 exabytes per month) and China (12 exabytes per month).

Major Growth Driver: Consumer Video

  • Globally, there are expected to be 1.5 billion Internet video users by 2016, up from 792 million Internet video users in 2011.

Global Device Growth

  • By 2016, the Index forecasts there will be nearly 18.9 billion network connections ―almost 2.5 connections for each person on earth.
  • In 2011, PCs generated 94 percent of consumer Internet traffic. This contribution is expected to fall to 81 percent by 2016―demonstrating the impact that an increasing number and variety of devices like tablets, smart-phones, etc. are having on how consumers and businesses access and use the Internet.
  • By 2016, TVs are expected to account for over 6 percent of global consumer Internet traffic (up from 4 percent in 2011), and 18 percent of Internet video traffic (up from 7 percent in 2011) ―demonstrating the impact of Web-enabled TVs as a viable online option for many consumers.

Global IPv6 Capable Devices and Connections

  • The index suggests there will be 8 billion IPv6-capable fixed and mobile devices in 2016, up from 1 billion in 2011;
  • Approximately 40 percent of all fixed and mobile networked devices will be IPv6-capable in 2016, up from 10 percent in 2011.

3DTV and HD (Advanced Video)

  • Global advanced video traffic, including three-dimensional (3-D) and high-definition TV (HDTV), is projected to increase five times between 2011 and 2016.

Mobile Broadband

  • Global mobile Internet data traffic is forecast to increase 18 times from 2011 to 2016, to 10.8 exabytes per month (or 130 exabytes annually).

Global File Sharing

  • By 2016, global peer-to-peer traffic is projected to account for 54 percent of global consumer Internet file sharing traffic, down from 77 percent in 2011. On a quantity basis. However, the amount of peer-to-peer traffic is expected to increase from a rate of 4.6 exabytes per month in 2011 to 10 exabytes per month by 2016.

Global Business IP Traffic

  • Business IP video conferencing is projected to grow sixfold over the forecast period, growing more than two times as fast as overall business IP traffic, at a CAGR of 42 percent from 2011 to 2016.

Global Addressable Market and Service Adoption Highlights
Residential

  • There were 1.7 billion residential Internet users with fixed Internet access in 2011; the index forecasts there will be 2.3 billion residential Internet users with fixed Internet access by 2016.
  • Digital TV is expected to be the fastest-growing digital television service, going from 694 million subscribers in 2011 to 1.3 billion subscribers in 2016.
  • Voice over IP (VoIP) is projected to be the fastest-growing residential Internet service, going from 560 million users in 2011 to 928 million users in 2016.
  • Online Music is expected to be the most highly penetrated residential Internet service ―in 2011 there were 1.1 billion users (63 percent of residential Internet users); in 2016 there are forecast to be 1.8 billion users (79 percent of residential Internet users).

Global Consumer Mobile

  • Mobile consumers are forecast to grow from 3.7 billion in 2011 to 4.5 billion by 2016.
  • Mobile video is projected to be the fastest-growing consumer mobile service, going from 271 million users in 2011 to 1.6 billion users in 2016.
  • The Index suggests consumer SMS will be the most highly penetrated consumer mobile service―in 2011, there were 2.8 billion users (74 percent of consumer mobile users), increasing to 4.1 billion users (90 percent of consumer mobile users) by 2016.

Global Business

  • Business Internet users are projected to grow from 1.6 billion in 2011 to 2.3 billion by 2016.
  • Desktop videoconferencing is projected to be the fastest-growing service, with 36.4 million users in 2011, increasing to 218.9 million users in 2016.
  • Business mobile location-based services (LBS) are forecast to be the fastest-growing business mobile service, with 27 million users in 2011, increasing to 158 million users by 2016.


        -------Cisco

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