Dataquest maps out wireless LAN's boom time
Semiconductor Business News
(09/19/02 07:20 a.m. EST)
SAN JOSE, Calif. -- The worldwide wireless LAN market is showing strong growth with unit shipments set to grow 73% in 2002 compared with 2001, according to market research firm Dataquest Inc. A unit shipments boom is being accompanied by some price erosion as revenue is expected to increase 26% in 2002, but such growth is set to continue through to 2007 according to Dataquest's report "Wireless LAN Equipment: Worldwide, 2001-2007".
In 2003 worldwide wireless LAN shipments should total 26.5 million units, up from 15.5 million units in 2002 and revenue will reach almost $2.8 billion in 2003, up from $2.1 billion in 2002, the San Jose-based company said.
"The initial strong growth in the wireless LAN equipment market is being driven by the mobile data connectivity needs of professional portable PC users," said Andy Rolfe, principal analyst for Dataquest's worldwide telecommunications and networking group, in a statement.
Dataquest forecasts the penetration rate of wireless LAN into the professional mobile PC installed base will grow from 9% in 2000 to almost 50% by the end of 2003, and it is expected to surpass 90% by 2007.
Most wireless LANs are currently being purchased as an add-on PC adapter. But, in 2002, approximately 10% of all mobile PCs will be shipped with a wireless LAN included, and it will increase to 31% in 2004, Dataquest predicts. By 2007, Dataquest forecasts 68% of mobile PCs shipped will include a wireless LAN.
"Already the top-tier mobile PC manufacturers offer portable PCs with bundled wireless adapters," Rolfe said. "In fact, Intel recently announced its intention to incorporate wireless LAN capabilities into the forthcoming Banias mobile platform, which will drive wireless LAN integration in new mobile PCs."
One result of the strong growth in wireless LAN is a crowded market place with many vendors still trying to enter the market. Dataquest is predicting a number of failures, withdrawals and consolidations.
North America currently dominates wireless LAN deployment and is projected to account for 63% of shipments in 2002, but the situation will gradually change as Europe resolves regulatory issues and demand builds in Europe and Japan, Rolfe said. By 2007, North America is projected to account for 40% of shipments while Asia/Pacific and EMEA should each have approximately 30% of the market. |
