Demand for Next Generation Cellular Handsets to Spur Explosive Growth in Component Sectors, Says Allied Business Intelligence
Source: Allied Business Intelligence
OYSTER BAY, NY. While the component sector serving the wireless handset market has received less than rave reviews these past few months, long term growth in the market will be impressive, according to a new Allied Business Intelligence (ABI) report. Increased demand for enhanced cellular handsets will fuel new growth for participants in the components sector. According to the study, "3G/Cellular Integrated Circuits, the total available cellular integrated circuit (CIC) market will double from $13.9 billion in 2001 to $26.4 billion in 2006.
In an environment obscured by uncertainty, progress can be evasive. The present economic stall hastens OEMs and IC suppliers to preserve the essentials while pursuing higher levels of semiconductor integration. "Without justification for 3G handset upgrades and without realistic blueprints to follow, IC makers face mounting obstacles, said Natalie Amiama, ABI Analyst and report author. "The ability to react quickly and accurately will profoundly impact vendors long term prosperity. But strangely enough, in a business noted for enabling communication, circumstance has to force industry participants to cooperate.
The move toward complete solutions will impact gallium arsenide and silicon players alike, as multimedia functionality is emphasized over conventional communications. Consolidation and convergence will be pervasive in all stages of cellular handset design, as next generation technologies lure newcomers into the cellular space. As GSM, CDMA, TDMA, AMPS and 2.5G technologies endure, the grand debut of integrated 3G IC solutions is delayed. As a result, the bill of materials for 3G phones will warrant a 79% increase from today s basic GSM model. Additionally, the semiconductor value is estimated to be 49% greater than that of 2.5G devices.
The transition from voice to data seems straightforward, but changes in phone partitioning, from antenna to baseband, are constrained within a cost-prohibitive environment. The study examines issues from signal and data processing requirements, semiconductor advances, the 2.5G/3G migration path, modules and embedded designs, to the impact on intermediate frequency, RF and digital IC providers. Semiconductor content for all cellular standards, from 2G to 2.5G and 3G standards of GPRS, 1XRTT, EDGE and WCDMA, is explicated through 2006, and dissected according to functional roles within cellular subsystems.
Allied Business Intelligence Inc is an Oyster Bay, NY-based technology research think tank specializing in communications and emerging technology markets. ABI publishes strategic research on the broadband, wireless, electronics, networking and energy industries. Details of these studies can be found at www.alliedworld.com, or call 516-624-3113 for more information.
Web site: http://www.alliedworld.com
