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The Global Market for 5Ghz Wireless Technology - A new Study by Frost & Sullivan
2.4Ghz Technology Steals Spotlight On Wireless LAN Stage
Despite Rapid Emergence Of 5Ghz-Based Systems
Undeterred by the muted enthusiam in the wireless space, combined revenues
generated in the 2.4Ghz and 5Ghz "based systems markets, valued at $946 million
in 2000, are set to blossom into a $4.76 billion business in 2005.
The arrival of the 802.11b standard (which operates on the 2.4Ghz frequency) in
1999 signalled a new lease of life for wireless local area network (WLAN)
products.
Despite the fact that parity between the two sectors will not be reached until
2008, a new study by Frost & Sullivan (http://frost.com), the international
marketing consulting company, is upbeat about growth prospects in the 5Ghz
sector. The first standardised 5Ghz products, providing a high bandwidth
wireless LAN network, will be launched later this year in the shape of limited
roll-outs of access points and add-ons.
WLAN is transforming to become a mainstream technology, used in enterprises to
extend the fixed-wire LAN and provide increased mobility to the workforce. Other
growth areas explored in Frost & Sullivan"s study include public spaces, home
networking and small offices.
According to the findings, products with 802.11b capability, including access
points, bridges, PC cards, desktop add-ons, PDA add-ons and integrated products
such as mini-PCI, simmer with robust growth expectations.
The increasing miniaturisation of 5Ghz silicon technology, plummeting costs,
lower power consumption and wider availability, will help the market to
gradually become more established, and eventually enter the mainstream.
Enterprise applications and integration with 3G will be significant growth
drivers.
Revenue growth in the 802.11b sector is forecast to be negative in 2005 as
volume growth slows and price erosion continues. The 5Ghz camp will be
particularly prominent in the exertion of price pressure, prompted by rising
volumes. Growth in the 5Ghz will leap from $0.01 billion in 2001 to $1.73
billion in 2005.
As 802.11b matures, vendors must look at the next generation of products to
successfully exploit the plethora of opportunities this market boasts.
Meanwhile, Frost & Sullivan is less optimistic in its forecast for other
frequency hopping products such as HomeRF. However, the study predicts shipments
of Bluetooth-embedded products to shoot up from its current level of 11 million
to 600 million units in 2005.
"The battle over which standards and regulations will dominate the flourishing
wireless arena continues to impact deployment speeds," comments Jan ten Sythoff,
Programme Manager at Frost & Sullivan. "There are different regulations
governing 5Ghz technology in different parts of the world," he explains, "and
consequently, inconsistent standards have been introduced to accommodate these
rules. The lack of standardisation will continue to inhibit growth in the 5Ghz
space."
Another important issue underlined in Frost & Sullivan's findings is the
prevalent need of the technology to develop further in order to become viable,
particularly for mobile applications. Today, WLAN is cumbersome and power-hungry
and although some systems are available, they are not adequate for mainstream
markets. High costs are also a restraining factors."
Despite these problems, the market exhibits vast potential for growth. 5Ghz
technology has a wide range of diverse applications, all enjoying substantial
growth prospects. The technology is also strongly backed by a number of
globally-influential corporate behemoths (such as Cisco, Intel, Ericsson and NTT
East) from different parts of the value chain.
A further profitable revenue stream, the study concludes, will be offered by the
integration of WLAN technology with the potentially mammoth 3G infrastructure
market, currently beset by problems of its own.
Frost & Sullivan is an international marketing consulting company that monitors
a comprehensive spectrum of wireless mobility sectors for trends, market
measurements and strategies. This ongoing research is utilised to complement a
series of research publications to support industry participants with customised
consulting needs.
About The Report
Report Code: 3984-65, Publication Date: May 2001, Price: 4,850 Euros
For further press information, please contact
Frost & Sullivan's Public Relations Department
Tel. +44 (0) 20 7343 8376 or Fax. +44 (0) 20 7343 8380
kristina.menzefricke@fs-europe.com
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