The Decline of Cellular/3G Will Negatively Impact the RF Power Semiconductor Device Market
The RF Power Semiconductor Device Market below 4 GHz is composed of six major segments, as defined in a recent report by ABI Research. These segments are wireless infrastructure, military, ISM (Industrial/Scientific/Medical), broadcast, commercial avionics, and non-cellular communications, with each segment branching out into smaller niches to permit highly specific forecasts for the market.
“Wireless infrastructure represents the largest segment for RF power semiconductors, and it contains the largest sub-segment: cellular/3G,” says research director Lance Wilson. “But cellular/3G is in a sense a long-term market anomaly that is now in a decline which will continue steadily over the next five years.”
More efficient air interfaces, coupled with Average Selling Price erosion and the build-out of the infrastructure base, are what drive this sub-segment downward from a revenue standpoint. On the device side, wide-scale adoption of plastic packages diminishes revenue as well; and over the 2007—2012 forecast period, revenues for the cellular/3G sub-segment will decline at a compound annual growth rate of nearly 8%.
“WiMAX, another sub-segment within wireless infrastructure, remains controversial,” explains Wilson. “Although fixed WiMAX is deploying, mobile WiMAX (802.16e) is in a state of flux from a high-power standpoint. There is a potential large upside to mobile WiMAX, but there are no guarantees that this will actually occur in a wide sense.
“In spite of this possibility, the overall wireless infrastructure segment will decline by a compound annual growth rate of 2% over the 2007—2012 forecast period.”
Overall, the entire marketplace will exhibit a five-year growth rate of only 2.9% – illustrating the effect of Cellular/3G’s decline. However, the remaining major segments show a healthy compound annual growth rate over the forecast period of 9.5%, with the military and ISM segments leading the pack.
The recent study, RF Power Semiconductor Devices, offers five-year, detailed forecasts for all major market segments and sub-segments, along with market share data for major industry vendors and technologies. It forms part of two ABI Research Services: the RF Power Devices Research Service and the Wireless Semiconductors Research Service.
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 www.abiresearch.com, or call +1.516.624.2500.
“Wireless infrastructure represents the largest segment for RF power semiconductors, and it contains the largest sub-segment: cellular/3G,” says research director Lance Wilson. “But cellular/3G is in a sense a long-term market anomaly that is now in a decline which will continue steadily over the next five years.”
More efficient air interfaces, coupled with Average Selling Price erosion and the build-out of the infrastructure base, are what drive this sub-segment downward from a revenue standpoint. On the device side, wide-scale adoption of plastic packages diminishes revenue as well; and over the 2007—2012 forecast period, revenues for the cellular/3G sub-segment will decline at a compound annual growth rate of nearly 8%.
“WiMAX, another sub-segment within wireless infrastructure, remains controversial,” explains Wilson. “Although fixed WiMAX is deploying, mobile WiMAX (802.16e) is in a state of flux from a high-power standpoint. There is a potential large upside to mobile WiMAX, but there are no guarantees that this will actually occur in a wide sense.
“In spite of this possibility, the overall wireless infrastructure segment will decline by a compound annual growth rate of 2% over the 2007—2012 forecast period.”
Overall, the entire marketplace will exhibit a five-year growth rate of only 2.9% – illustrating the effect of Cellular/3G’s decline. However, the remaining major segments show a healthy compound annual growth rate over the forecast period of 9.5%, with the military and ISM segments leading the pack.
The recent study, RF Power Semiconductor Devices, offers five-year, detailed forecasts for all major market segments and sub-segments, along with market share data for major industry vendors and technologies. It forms part of two ABI Research Services: the RF Power Devices Research Service and the Wireless Semiconductors Research Service.
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 www.abiresearch.com, or call +1.516.624.2500.
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