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Strong growth in laser diode and WLAN markets

The laser diode market grew by a healthy 26% in 2003, while wireless LAN shipments grew by an amazing 214%.
Laser diode market up 26% in 2003

The market for laser diodes grew by 26% in 2003 reaching a total value of just over $3 billion, according to figures from Strategies Unlimited.

The market research firm says that the laser diodes accounted for 62% of the total laser market of $4.9 billion last year.

Further growth of 12% is expected in the semiconductor laser market in 2004, which should reach a level of $3.4 billion.

This will bring the laser diode market back close to its 2001 level of $3.64 billion, although the market is currently still around half its value of $6.6 million in the peak year of 2000.

”Staggering” growth of 214% for WLAN market

The wireless local-area network (WLAN) market achieved “staggering” growth in 2003, according to IN-Stat//MDR.

The market research firm says that shipments of network interface cards (NICs) and access points (APs) reached 22.7 million units in 2003.

This represents growth of 214% compared with the 7.2 million units shipped in 2002.

The primary market drivers for 2003 were the availability of 802.11g products, and consequently the very cheap prices for 802.11b equipment.

Notebooks with embedded wireless LAN capability were also a driver, as manufacturers such as Dell, HP, Toshiba, Fujitsu and Acer introduced products with embedded 802.11b and 802.11g, usually at no extra cost.

“Rapid price erosion is still a critical factor in revenue growth within this market,” said Gemma Paulo, a Senior Analyst with In-Stat/MDR, “but the high volumes are allowing for revenue growth, even as prices fall fast.”

Wi-Fi hardware revenues are expected to reach $1.7 billion for 2003, an increase of 140% from 2002 total revenues of $700 million.

In-Stat/MDR also reported that, in the IC space, Broadcom and Atheros emerged as market leaders in the 802.11g and 802.11g/a segments, while Intel’s Centrino mobile platform was embraced by an increasing number of consumers choosing to purchase laptops.

802.11g shipments are expected to overtake 802.11b shipments in 2004, as 802.11g prices begin to fall fast, but this product segment is at the mercy of falling dual-band 802.11a/g prices.

Europe was the fastest growing region for WLAN shipments to the home, due to a dramatic increase in home broadband subscribers in late 2002 and throughout 2003.

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