News Article
Strong growth forecast for wireless network chips
The wireless networking segment will be a bright spot in an otherwise relatively flat 2005 chip market, according to a new report from market analyst IC Insights.
The wireless networking segment will be a bright spot in an otherwise relatively flat 2005 chip market, according to a new report from market analyst IC Insights.
The company is also forecasting that over the 2004-2008 time period, the market for wireless networking chipsets will achieve an average annual growth rate of 23% in dollars and 35% in unit shipments.
According to IC Insights, 802.11 chipsets will make up the bulk of the wireless networking market, accounting for around 50% of sales from now until 2008.
The market 802.11 chipsets is set to grow from US$680 million in 2004 to US$1.5 billion in 2008, an average annual growth rate of 21%. The average selling price (ASP) for these chips is forecast to fall from US$17 in 2004 to US$12 in 2008.
The Bluetooth chipset segment of the wireless networking sector is projected to expand from US$580 million to US$1.5 billion over the 2004-2008 time period.
IC Insights believes that the ASP of a Bluetooth chipset in 2008 will be about a quarter the 2002 price.
The company also believes that the wireless network sector is likely to go through a period of consolidation, as there are currently a surplus of companies.
"Although we believe that the wireless network market has room for many IC suppliers, there seems to be an excessive number of companies fighting for market share.
"Given that, there has been and will continue to be some consolidation among companies and some participants that succumb to competitive pressures."
The company is also forecasting that over the 2004-2008 time period, the market for wireless networking chipsets will achieve an average annual growth rate of 23% in dollars and 35% in unit shipments.
According to IC Insights, 802.11 chipsets will make up the bulk of the wireless networking market, accounting for around 50% of sales from now until 2008.
The market 802.11 chipsets is set to grow from US$680 million in 2004 to US$1.5 billion in 2008, an average annual growth rate of 21%. The average selling price (ASP) for these chips is forecast to fall from US$17 in 2004 to US$12 in 2008.
The Bluetooth chipset segment of the wireless networking sector is projected to expand from US$580 million to US$1.5 billion over the 2004-2008 time period.
IC Insights believes that the ASP of a Bluetooth chipset in 2008 will be about a quarter the 2002 price.
The company also believes that the wireless network sector is likely to go through a period of consolidation, as there are currently a surplus of companies.
"Although we believe that the wireless network market has room for many IC suppliers, there seems to be an excessive number of companies fighting for market share.
"Given that, there has been and will continue to be some consolidation among companies and some participants that succumb to competitive pressures."
