The U.S. wireless industry contributes $475 billion annually to America’s economy and supports 4.7 million Jobs, according to a study, commissioned by CTIA and conducted by Accenture Strategy.
The wireless industry’s contribution accounts for 2.6 percent of total U.S GDP in 2016. Based on GDP, the U.S. wireless industry is larger than 87 percent of countries in the world— making it the 24th largest economy globally—ahead of countries such as Norway, Hong Kong and Ireland. Each $1 of the wireless industry’s direct GDP contribution results in $3.207 of total GDP impact across the American economy.
The wireless industry also supports 4.7M U.S. jobs, as each direct wireless job results in a total employment multiplier effect of 7.7x, compared with other sectors, such as full-service restaurants at 1.5x and hardware manufacturing at 3.9x. With over $1 trillion in economic output generated by the wireless industry in 2016,
California accounts for 15 percent of the wireless industry’s contribution. The wireless industry accounts for $1.2B in economic output in South Dakota, and 2.5 percent of New Jersey’s economic output is driven by the wireless industry.
The largest proportion of the industry’s overall $475B national GDP contribution – 44 percent, or $207B – is driven through indirect contribution by adjacent industries that supply the wireless industry. Notable examples are the semi-conductor and related device manufacturing sectors: 24 percent, or $16B, of the total GDP contributed to the U.S. economy by these sectors is driven by demand from the wireless industry.
Mobile phones are now the single largest driver of semiconductor demand. Smartphones are projected to have five to six times more semiconductor content than traditional mobile phones from now through 2020.