Abstract
The wired application market is one of the smaller semiconductor markets, but
it is expected to see growth in line with the overall semiconductor market in
the coming years. This market, overshadowed by the large wireless market is
makes communications possible with applications that span central office hubs
to the communications portals we have at home.
The outlook for wired communications semiconductors is positive, with
application specific products seeing strong growth and also gigabit, 10
gigabit, and network processors seeing gains. For now, field programmable gate
array growth is down, but as components become more advanced and the pricing
becomes more competitive with ASSPs, the market should grow. Despite growing
numbers of DSL subscriptions, revenues from DSL ICs are declining due to rapid
reduction in prices.
With a market share of 10 percent, the wired market is the second smallest
semiconductor market. The market is currently valued at $27 billion, and with
expected average annual growths of 6 percent, it is expected to reach $36
billion by year 2013. The wired market is expected to see shipment demand rise
by 6 percent annually over the same period, reaching 207 billion by year 2013,
up from 164 billion this year.
All together, the wired and wireless communications market is valued at $72
billion this year, trailing only computers in terms of overall semiconductor
sales. Over the forecast period, this combined market is expected to see
average annual growth of 10 percent, with revenues eclipsing the computer
market. Wireless will continue to be the major contributor to revenues,
although the wired market is quite a bit larger in terms of shipments.
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