WLAN & A-GPS Chipset Market To Grow Phenomenally

by CXOtoday Staff    Aug 11, 2006

Frost & Sullivan’s recent study revealed that the wireless local area network (WLAN) and assisted global positioning system (A-GPS) chipsets market will grow phenomenally, with technologies that extend benefits in areas that includes electronics and cellular devices

The analysis revealed that the WLAN chipset market earned revenues of $910 million in 2005 and will reach $2,288.70 million in 2009. The global A-GPS chipset market will earn revenues of $546.30 million in 2005 and will reach $1,422.50 million in 2009.

According to the study, the cellular device is expected to be one of the growth segments in the next few years with dual-mode phones having capability to switch between cellular and Wi-Fi networks.

The share of cellular devices in the WLAN chipsets market formerly 10.9% in 2005, will reach 23.4% by 2009 growing at a CAGR of 52.4%. The consumer electronics segment will increase its 2.5% share of the WLAN chipsets market by approximately 10% by 2009.

The study revealed that WLAN chipset market is poised to grow tremendously with the standardization of 802.11n expected to be in 2007. This ratification would allow converged data, voice and video services without disruption and would also have a strong impact on the gateway market.

The ability to operate in an unlicensed spectrum and increase in throughput, range and reliability will be other factors that drive WLAN chipsets. Frost & Sullivan said that the A-GPS market is rapidly evolving and with functionalities in terms of faster time-to-first-fix, reduction in power consumption, and an ability to track satellites under weak signal conditions, they are gradually moving beyond defense-oriented applications to more mainstream consumer markets.

As WLAN and A-GPS penetrate an increasing number of consumer electronic devices, providing system level solutions and integrating all components onto a single chip is expected to be a major challenge for semiconductor vendors.

“In such a scenario, those vendors that offer high performance, cost-effective single package solutions that consume less power stand to gain the most in terms of market share,” observed Govind Krishan Kumar, IT Analyst, Frost&Sullivan.