IDC says WLAN semiconductor market poised for strong growth

According to IDC the international market wireless LAN (WLAN) semiconductors will grow at a compound annual growth rate (CAGR) of 29% over the next five years.

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By  Guy Mathew Published  September 19, 2002

According to IDC the international market wireless LAN (WLAN) semiconductors will grow at a compound annual growth rate (CAGR) of 29% over the next five years. The report predicts that revenues will reach $1.16 billion in 2006, up from $331 million in 2001.

The analyst house believes that the growth will be driven by increased uptake of embedded form factors in sales of PC notebooks. The decreasing cost, size and power requirements will help boost those revenues.

“IDC expects PC vendors will increasingly shift toward an embedded approach as the demand for mobile connectivity makes WLAN an attractive offering within notebooks,’ said Ken Furer, research analyst with IDC’s semiconductor group.

The report also mentions the likely growth in dual-band chipsets as backwards compatibility to existing standards like 802.11b become important. It cites Agere and Intersil as the leaders in the field based on strong sales in the first half of 2002.

“As margins become further constricted, IDC believes this space will favour only a handful of vendors that are able to ride the cost curve by specialising in this market. Certain vendors that can leverage lower manufacturing costs, particularly in digital and RF CMOS should have a distinct advantage,” he added.

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