Report: WLAN equipment market will continue growing in 2006

Sept. 8, 2005 - Forward Concepts says market will continue to expand as costs and prices ride down the learning curve.

The wireless LAN equipment market will continue growing at a higher rate in 2006, according to a new report.

The report has been announced by Forward Concepts. It is a new in-depth study of the wireless LAN (WLAN) and Worldwide Interoperability for Microwave Access
(WiMAX) equipment and chip markets. The report, "Beyond Wi-Fi: 802.11n, VoWi-Fi & WiMAX," is designed to provide a comprehensive analysis of worldwide equipment and chip markets.

Based on product reviews and interviews with numerous companies involved in the WLAN and WiMAX markets, the report provides detailed forecasts through
2009 of all market segments, including access points and base stations (WiMAX), Network Interface Cards (NICs), wireless router gateways and the chipsets enabling the entire WLAN and WiMAX networks. Units, average selling prices and total revenue are
forecast for every market segment.

"The growing WLAN market is a classic example of how a market can continue to expand as costs and prices ride down the learning curve, opening up new applications and market opportunities," says Carter Horney, the author of the report. "Specifically, in spite
of a predicted 23% average selling price drop, worldwide shipments of WLAN equipment products will increase 6% to the $5.2 billion level in 2005."

The report also predicts that WLAN equipment will continue growing at a higher rate in 2006 to the $5.9 billion level as new IEEE 802.11n and VoWi-Fi equipment is introduced and the infrastructure for traditional Wi-Fi expands.

In the report, the WiMAX and pre-WiMAX equipment market (including both 802.16d and 802.16e) is forecast to grow from $72 million in 2005 to just over $2 billion in 2009, for an annual compound growth rate of 130%.

"We view WiMAX as complementary to both Wi-Fi and 3G Cellular," Horney continues. "Fixed 802.16d systems can provide backbones for Wi-Fi hotspots where DSL or cable is unavailable or impractical. When emerging 802.16e provides a mobility WiMAX capability, it will augment the Wi-Fi infrastructure that will remain dominant for several years."

Early views were that mobile WiMAX would be a threat to 3G, but now cellular equipment vendors such as Nokia are saying that WIMAX will be complementary.

Pure WiMAX chipsets, beginning with 802.16d-compliant fixed-operation units, are beginning to ship in 2005 for estimated revenues of $5.4 million. However, mobility-
capable 802.16e chipsets will begin sampling next year and the combined chip market is forecast to grow at a 209% compound annual growth rate to $489 million in 2009.

Forward Concepts is based in Tempe, AZ. For more information visit www.fwdconcepts.com .

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