Microwave Journal

Dramatic Growth of Consumer Electronics Categories Drives Wireless Connectivity Chipset Markets

January 26, 2011

Surging sales of netbooks, media tablets and other “always connected” consumer and industrial electronics products mean equally robust performance in markets for wireless connectivity ICs. ABI Research expects that when the final numbers for 2010 are gathered, shipments of wireless connectivity chipsets will reach a total of approximately two billion units, a 22 percent shipment increase compared to 2009.

"Market demand for wireless connectivity chipsets has been increasingly robust in recent years, a trend that will continue in the medium term," says industry analyst Celia Bo. “Total shipments of wireless connectivity chipsets are forecast to reach seven billion units in 2015, with a 2010-2015 CAGR of 30 percent.”

Bluetooth maintained its lead among all wireless connectivity chipset categories, accounting for almost 60 percent of all 2010 shipments. Wi-Fi chipsets take second place with approximately a 38 percent market share. They are expected to achieve the highest growth rate among connectivity chipsets, with a 22 percent CAGR between 2010 and 2015.

For technology applications, the increasing demand for Wi-Fi-enabled mobile and consumer electronics devices is a key engine driving market growth. Wi-Fi-enabled mobile handset shipments have increased as much as 50 percent since 2009, and the adoption rate of Wi-Fi technology in mobile handsets is set to reach 32% in 2015. Today almost every netbook, media tablet and gaming console has Wi-Fi embedded, and 2010 shipments of Wi-Fi-enabled consumer devices showed an increase of about 18 percent compared to 2009.

Besides the already established segments, other Wi-Fi-enabled consumer electronics devices such as digital still cameras (DSC), digital camcorders, TVs, DVD players, DVRs and set-top boxes (STB) are all set for strong growth in the coming years. Between 2010 and 2015, the CAGRs of Wi-Fi-enabled digital still cameras and TVs are expected to reach 63 and 65 percent, respectively, followed by DVD players with a 47 percent CAGR.

ABI Research’s “Wireless Connectivity Market Data” addresses marketing and technical analysis of Bluetooth, NFC, UWB, GPS, Wi-Fi and Combo Wireless Connectivity ICs. Its forecasts include chipset ASP, shipment and revenue for standalone chipsets and various combo solutions.

The study is included in the firm's Wireless Connectivity Research Service that also includes Research Reports, Research Briefs, ABI Insights, ABI Vendor Matrices and analyst inquiry support.