Aug. 19 (Bloomberg) -- Nokia Oyj, the world's largest handset maker, is set to reach its goal of a 40 percent global market share next year, researcher Strategy Analytics said.

Progress in phones using the code-division multiple access technology, which is employed in markets such as the U.S., China and South Korea, will help Nokia reach its target, Strategy Analytics said in a release dated yesterday. The researcher expects global handset shipments to rise 11 percent in 2004.

``While more work is needed, we expect CDMA sales to be the fuel that drives Nokia over the 40 percent threshold in 2004,'' Chris Ambrosio, research director at Newton, Massachusetts-based Strategy Analytics, said in the statement.

Nokia Chief Executive Officer Jorma Ollila is stepping up a push into CDMA phones, seeking to extend Nokia's lead on Motorola Inc. and Samsung Electronics Co. Nokia had 11 percent of the CDMA market and 37 percent of the overall market in the second quarter, Strategy Analytics said.

Nokia shares rose as much as 51 cents, or 3.9 percent, to 13.71 euros ($15.2) and traded at 13.65 euros as of 2:07 p.m. in Helsinki.

The industry will sell 455 million handsets this year and 507 million phones in 2004, according to Strategy Analytics, which provides technology research and consulting.

After capturing almost half the Western European market, Nokia is setting its sights on the U.S. and China, where handsets are less commonplace, leaving more scope for growth. One-sixth of Chinese consumers have mobile phones, compared with about half of U.S. citizens. In some European markets, handset penetration tops 90 percent.

In March, Espoo, Finland-based Nokia unveiled five handsets based on the CDMA standard. The company regained its lead over Motorola in China, the world's largest handset market by users, a Chinese government report showed last month.

Last Updated: August 19, 2003 07:21 EDT