IDC predicts WLAN semiconductor boom

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The worldwide wireless local area network (WLAN) semiconductor market is being tipped for compound annual growth of 17 per cent over the next three years, leading to a $3.2 billion industry by 2010, according to IDC.

The analyst's predictions come just a few days after researchfrom Informa Telecoms & Media suggested that the mobile device market is slowing to a more moderate pace of growth after experience exceptionally high demand of late.

Technology advancements in 802.11, such as single chip low-power devices, the increasing availability of end-market applications and production of pre-N and draft-N specification chipsets are all being cited as key drivers towards this increased market revenue.

Pricing has come down due to the pressure from industry competition, according to IDC's Worldwide WLAN Semiconductor 2005-2010 Forecast.

But it still believes that there are opportunities for growth for those prepared to set their sights on embedded applications like mobile phones and certain consumer electronic designs.

"To remain viable players in this space, chip vendors must think about WLAN as a portfolio technology that can complement products in broadband, wired networking, consumer devices, PC, or mobile device designs," said Celeste Crystal, a senior research analyst for IDC's Semiconductors group.

"By focusing on end markets and the ecosystem, WLAN chip vendors will differentiate products and drive pricing and product differentiation in the industry."

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