Opportunities in wireless specific IC market

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21 May 2003 News

Wireless communications has fast become the technology of choice in all facets of commerce. From manufacturing to sales, global business continues to integrate new systems that share data and communications over wireless networks, providing an ample opportunity for wireless chip suppliers around the world.

According to research group Databeans, estimates for 2002, global revenue of $9 bn for the wireless specific IC market. These products that include digital signal processors (DSP), microcontrollers, logic, and analog. The firm anticipates a compound annual growth rate of 14% over the next five years, resulting in a market valued over $22 bn by 2008.

Table 1: Global wireless specific IC market forecast ($M)

Wireless specific IC growth is led by DSP sales, which are expected to expand from $3,2 bn in 2002 to $8,7 bn by 2008. Analog ASSP growth follows with a compound annual growth rate of 15%. In 2002, analog ASSP share of the wireless specific IC market was 40%, followed by DSP at 35%, digital ASSP at 23%, and microcontrollers at 2%.

While most of the balance of revenue generated from wireless specific IC sales is contributed by wireless telecommunications, Databeans says that the proliferation of wireless data networking equipment is expanding rapidly. Technological advancements in wideband over the next several years will drive adoption of wireless distribution of video, audio, and data through a variety of consumer and commercial devices.

In 2002, over 20 million wireless LAN devices shipped, up from 8 million in 2001. Revenue generated from sales of wireless LAN chipsets in 2002 reached $468m, or 5% of total wireless specific IC shipments. Databeans expects share of wireless data communications ICs to make up 15% of the total by 2008.

For more information see www.databeans.net

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