ABI: IEEE 802.15 Bluetooth, 802.11 Wi-Fi Markets Evolving in Different Directions
July 22, 2008 // Published as a news service by IHS
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Global markets for Bluetooth (IEEE 802.15) and Wi-Fi (IEEE 802.11) continue to show strong growth and will remain the leading personal area networking technologies, according to ABI Research, but prices and market developments are pushing each in new directions.
"Bluetooth and Wi-Fi equipment and chipset numbers continue to increase," said ABI Research senior analyst Doug McEuen.
"But with IC [integrated circuit] prices continuing to fall due to technology evolution and greater IC production efficiency, revenues aren't rising as dramatically.
"That's especially the case for Wi-Fi, where the chipsets have been very expensive for a long time. As the attach rate, particularly in laptops, increases to 100%, production is growing rapidly and prices are falling.
"That's a good thing, because as the laptop market reaches saturation, Wi-Fi will need to find new opportunities."
Analysts said IC vendors are hoping that lower price points will make the ICs attractive to other market segments, especially the huge but cost-sensitive wireless handset market.
"If you're a radio or IC manufacturer and your unit price is above $2, you're going to have trouble getting your product into a cell phone," said McEuen. "That is definitely one of the reasons why Wi-Fi has seen slower adoption in that market."
Another key trend, McEuen said, is that Bluetooth's prevalence in wireless handset/headset combinations is being supplemented by greater penetration in MPEG audio layer 3 (MP3) players and other portable media devices. It is also making inroads in the automotive industry. Bluetooth already has great penetration in the handset world and its price point is very low. It is also evolving toward higher speeds and greater capabilities.
Source: ABI Research.