Worldwide WiFi VoIP handset revenue totaled US$54.7 million in 2004 and units totaled 143,000, and strong growth is expected at least through 2009 as steady adoption of voice over WiFi continues.

According to the latest report from Infonetics Research, WiFi Phones Biannual Worldwide Market Size and Forecast, WiFi is also set to penetrate into the mobile telephony market.

Worldwide dual-mode WiFi/cellular handset revenue hit US$6.7 million in 2004, the report says. WiFi capability will eventually become a common feature in cell phones, just as it is becoming standard in laptops today, according to the report.

WiFi VoIP handsets represent a small market currently, but one with great potential, according to Infonetics. The report says that in logistics and healthcare verticals in particular, VoWLAN is already gaining momentum and will become widespread throughout the enterprise as VoIP and wireless LAN adoption continue.

The Infonetics report also says there is potential for enormous growth in the consumer space, as VoIP services and wireless gateways are bundled with a broadband connection. More dual-mode WiFi/cellular handsets are expected to reach the market, enabling enterprise users to roam across 3G networks, home networks, corporate wireless LANs, and WiFi hotspots.

"Some challenges remain, such as QoS, roaming across different wireless platforms, and the relatively short range of WiFi signals, but with vendors currently addressing these issues, it is likely we'll be at the foot of the adoption bell-curve by mid-2006," said Richard Webb of Infonetics Research, author of the report.