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Wi-Fi Chipset Shipments Increase 10x in Last Five Years

Five Years of Wi-Fi Chipsets: Five Times the Revenue, But Ten Times the Shipments, According to New ABI Research Data

New market data released by ABI Research shows that about 440 million Wi-Fi chipsets will be shipped over the course of 2008. This represents a tenfold increase over the number shipped in 2003; but over the same five-year period, the revenues they produced have multiplied by only five.

“The tenfold increase in Wi-Fi chipset shipments since 2003 paired with a fivefold increase in revenues in the same period clearly highlights the falling average selling prices (ASPs) that we have seen as this market further matures,” says senior analyst Philip Solis. “Although ASPs got a small boost last year due to the introduction of higher-priced 802.11n chips, in general prices have fallen by about half, even though we’re moving to more complex chipsets that increasingly use OFDM and MIMO technologies for 802.11n.”

In 2007, Broadcom was the leading Wi-Fi chipset vendor. The company even widened its market lead over its competitors as it gained market share in the laptop segment.

The growth areas for this market in coming years will be found where Wi-Fi chips are embedded in more and more device types. Wi-Fi IC vendors should tailor their strategies accordingly. Consumer electronics (home theater equipment, gaming devices, portable media players), mobile handsets and computer peripherals will all see increased rates of Wi-Fi penetration. “While CE products will initially see more Wi-Fi inclusion,” Solis continues, “we expect that by 2011 they will be overtaken by mobile handsets. Mobile Internet devices (MIDs) will become increasingly significant as well.”

ABI Research’s Wi-Fi IC Market Share Analysis and Forecasts package provides clients with historical and forecast market data on a quarterly basis. Data and market share figures for the previous eight quarters are included, as is yearly data up to 2013. The database includes annual overall IC market share statistics from 2001 to the present, as well as market share for consumer/SOHO access points, enterprise access points, client adapters, laptops, and every embedded category including handsets, consumer electronics, and more.

It is a component of the firm’s Wi-Fi Research Service, which also includes Research Reports, Research Briefs, other Market Data products, ABI Insights, ABI Vendor Matrices, and analyst inquiry support.

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit http://www.abiresearch.com, or call +1.516.624.2500.

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