SOURCE: NSR

February 06, 2007 07:00 ET

Delays in Standardization Not Expected to Stall 802.11n Growth

Market Expected to Reach Over 28 Million Units Shipped by 2012 and Eventually Be Dominated by Mobile Device Use

CAMBRIDGE, MA -- (MARKET WIRE) -- February 6, 2007 -- NSR today released its newest market analysis and forecast report: "802.11n: WiFi Evolution or Stalled Standard." The report provides an in-depth analysis of demand trends for 802.11n form factors, WLAN equipment and access point development in six regions of the globe.

After a long-standing debate and many delays, the IEEE 802.11n Working Group has given its approval in January 2007 to the next draft version. "Full ratification is expected to take place a year later in January 2008, and many consider version 2.0 to eventually look very much if not exactly like the ratified standard. As such, the 'n' standard for all practical purposes could be considered already here and no longer stalled such that the evolution of 802.11n is now upon us," states Jose Del Rosario, Senior Analyst of NSR and author of the report.

NSR predicts a healthy global market for 802.11n chipsets and equipment. Unit shipments for pre-certified products are expected to reach close to 300,000 at the end of 2007. However, robust growth is expected once ratification of the "n" standard is achieved in early-2008, and by 2012, unit shipments are expected to reach over 28 million. In terms of revenues, from a base of $22.4 million in 2007 for pre-certified products, the market is forecasted to reach nearly $670 million for certified equipment sales by end-2012, for cumulative revenues of over $1.9 billion within a six-year timeframe.

The report indicates that 802.11 WiFi solutions have achieved critical mass in a relatively short period of time. Its resounding success in terms of equipment sales and usage has led to numerous incarnations aimed at improving throughput and reach for both consumer and enterprise use, as well as the emerging government sector. With the 802.11n standard, WiFi will be positioned to reach even higher throughput levels and wider reach, making WiFi even more integrated into the long-term telecom landscape.

802.11n form factors that go beyond laptop PCs are expected to move to cellular phones, TV sets, gaming units, mobile entertainment units, and home networking equipment among others. "NSR sees the WiFi-enabled cellular phone as the long term 'sweet spot' of demand for 802.11n. For instance, the newly unveiled iPhone by Apple has an 802.11g chip, and over time, this and other cellular phones that compete with the iPhone will likely embed 'n' chips as well. Not if but when this happens, along with price drops of these next-generation phones, 802.11n will see tremendous market uptake," adds Del Rosario.

"802.11n: WiFi Evolution or Stalled Standard" is a multi-client report now available from NSR. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at 617-576-5771.

NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR's primary areas of expertise include emerging technology, IP applications, and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.