According to the latest research from data analytics company Strategy Analytics (SA), web data traffic via mobile phone usage will undergo exponential growth during the next five years.

The market research firm’s Handset Data Traffic (2001-2017) forecast predicts that global data traffic will increase by 300% from current levels, to reach 21 exabytes by 2017. An exabyte is 1 000 000 terabytes or a billion GB.

According to SA, this kind of traffic increase puts tremendous pressure on carrier networks worldwide to keep users with data-hungry smartphones satisfied. One of the key driving forces behind the sharp web traffic growth is online video, with a compound annual traffic growth figure of 42%.

Susan Welsh de Grimaldo, director of the wireless networks and platforms service at SA, explained that mobile carriers are increasingly concerned with delivering a cost effective and satisfactory mobile video experience on smartphones over 3G, LTE (4G) and Wi-Fi networks.  

“More critically, carriers are asking how to monetize this growth in video traffic to profit from major investments made in LTE and other network upgrades,” de Grimaldo added.

Source: Strategy Analytics

David MacQueen, executive director for the Apps and Media division at Strategy Analytics, noted: “Data traffic has been almost doubling annually as smartphone penetration has increased and attractive, compelling media services have launched.”

MacQueen added that, “As developed markets mature we expect a slowdown in traffic growth to a 32% compound annual growth rate from 2012 onward, but this nonetheless sees carriers forced to find novel ways to handle huge volumes of traffic which will rise from 5 exabytes of data per year to over 21 exabytes per annum by 2017.”

In related news, SA recently stated that the game console market is projected to continue its downturn during 2013, ahead of the PlayStation 4 and Xbox One’s releases at the end of this year.