WLAN, A-GPS Chipset Markets to Boom: Report

— August 16, 2006

The wireless local area network (WLAN) and assisted global positioning system (A-GPS) chipsets market is set for rapid growth, according to a report by market research firm Frost & Sullivan.

Global WLAN chipset market sales reached $910 million in 2005 is projected to reach $2.3 billion in 2009. Global A-GPS chipset sales, $546.3 million in 2005, are projected to reach $1.4 billion in 2009.

"With the proliferation of hotspots, WLAN technology is witnessing a transition from the traditional retail and laptop segment into consumer electronic devices such as printers, gaming consoles, portable media and audio players that offer end users mobility as well as the ability to share wireless information," said Frost & Sullivan analyst T. Govind Krishna Kumar.

The share of cellular devices in the WLAN chipsets market, which 10.9 percent in 2005, is expected to reach 23.4 percent by 2009, growing at a compound annual growth rate (CAGR) of 52.4 percent. The consumer electronics segment will increase its share of the WLAN chipsets market from 2 percent in 2005 to 10 percent by 2009, the report said.

In addition, the WLAN chipset market is expected to benefit from the standardization of 802.11n expected in 2007. The ability to operate in an unlicensed spectrum and the increase in throughput, range and reliability are some factors that will drive WLAN chipsets into emerging consumer electronics, according to the report.

The report noted that in the A-GPS market, improved functionalities in faster time-to-first-fix, lower power consumption and the ability to track satellites under weak signal conditions are moving beyond defense-oriented applications toward mainstream consumer markets.

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