Wireless LAN Semiconductor Market Upside

The worldwide Wireless LAN (WLAN) semiconductor market is expected to pass the $4 billion mark by 2012 with a compound annual growth rate (CAGR) of 22.8 percent.

While PCs will remain the largest application segment for WLAN semiconductors, mobile phone applications will grow at a CAGR of 49.3 percent and become the second-largest category for WLAN semiconductor revenue by 2012.

IDC expects the MIMO-enhanced 802.11n technology to be the next growth driver for this market as the higher throughput and range provide a great opportunity for new applications and usage models.

"The need for connectivity and connected mobile clients continues to fuel the WLAN semiconductor market," said Ajit Deosthali, research manager for Short Range Wireless Semiconductors at IDC.

"WLAN adoption is set to grow beyond notebook PC and into the mobile phone and consumer electronics devices."

Key findings include the following:

- WiFi is set to take off in mobile handsets with dual-mode phones that provide both conventional cellular and WLAN connectivity.

- Connectivity is the fastest-growing segment for semiconductor companies, with WLAN leading the way. Mobile handsets and mobile internet devices will lead integration of WiFi radio with other radio technologies such as Bluetooth, FM, and GPS for personal area networks.

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