CHARLOTTESVILLE, Va.-Worldwide sales revenues from wireless local area network chipsets will reach $1.7 billion by 2007, according to new research from technology analyst firm CIR Inc., a huge leap from the $938 million WLAN chipsets will garner in 2003.
CIR expects WLAN chipset sales to grow due to new demand from the consumer electronics market and business users, as well as steadily increasing demand from the established home networking and mobile computing markets.
According to a CIR survey of OEMs and ODMs in Asia and North America, WLAN chipsets with the ability to supply in volume and to support multiple WLAN standards are most highly valued. Chipset makers can also differentiate themselves by developing chipsets that feature improved receiver sensitivity and encryption capability for enhanced security.
CIR expects 802.11g to eventually replace 802.11b, and 802.11a to become the standard for consumer electronics. Analysts further anticipate 802.11g chipsets will make up 26 percent of chipsets sold in 2003 and grow to 44 percent in 2004, while 802.11b will make up 61 percent sold in 2003, dropping to 45 percent by 2004. Meanwhile, 802.11a chipsets are expected to slightly increase in sales from 2003 to 2004.
Consolidation will likely continue in the crowded WLAN space, according to CIR, and certain companies, including Agere, Broadcom, Intersil, RF Micro Devices and Texas Instruments, will continue to have presence in the market, according to customer surveys. Meanwhile, Atheros, which, according to CIR, is the only WLAN startup shipping in quantity, and Intel, which has yet to ship its own WLAN chipsets, will be companies to watch.
