IDC Sees WLAN Semi Oppty

The WLAN semiconductor market will increase at a 13% CAGR to reach $1.1B by 2007, says IDC

June 27, 2003

2 Min Read

FRAMINGHAM, Mass. -- Increased adoption of wireless networking capabilities within mobile PCs coupled with the accelerated build-out of wireless hotspots are creating a healthy growth environment in the WLAN semiconductor market. According to a new report from IDC, the worldwide WLAN semiconductor market will increase at a 13% compound annual growth rate (CAGR) from 2002 to 2007, reaching $1.1 billion in revenues by 2007. During the same period, shipments will increase nearly five-fold, reaching 114 million units shipped in 2007.

“The next several years are going to witness rapid development of a WLAN infrastructure, which in turn will generate considerable demand for WLAN semiconductors,” said Ken Furer, analyst with IDC’s Semiconductor research program. “However, IDC expects the market will peak in 2005 as price erosion from aggressive competition and more advanced CMOS integration will begin to slow sales growth. The market will remain fairly flat throughout the rest of the forecast period as saturation is achieved in the key target applications.”

Within the WLAN semiconductor market, IDC identified the following key trends:

  • The high attach rate for embedded WLAN inside mobile PCs will remain the leading driver for shipment growth. WLAN adoption in other consumer devices, including set-top boxes, DVD players, and gaming consoles, will not drive demand during the forecast period.

  • 802.11g will take a big bite out of 802.11b sales in 2003, while dual-band solutions (802.11a+b/g) will come on strong by 2005.

  • Price erosion and market saturation will lead to industry consolidation in the later years of the forecast as the weaker suppliers are weeded out. Impressive RF performance and power management features will be the keys to survival.

  • Security concerns have largely been addressed and sufficient security standards will soon be in place.



The IDC study, Worldwide WLAN Semiconductor Forecast and Analysis, 2002–2007 (IDC #29610), examines the market for components going into 802.11 WLAN connection and infrastructure markets. This includes 802.11b, 802.11a, 802.11g, and dual-band 802.11a+b/g chipsets shipping into primarily mobile and access point systems.

IDC

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