Wireless USB

The wireless USB market is still in its infancy and competes directly with the bluetooth protocol (see Wikipedia page). Global Sources Computer Products says the wireless USB market is still an early adopters market with very few companies providing entering the market. Global Sources writes:

Wireless USB remains an early adopter’s market, with only a handful of players actively pursuing the line worldwide. High product development and manufacturing costs, plus the small supply of PCs integrating Wireless USB modules or ports, are currently the major roadblocks to adoption. In Greater China, very few companies have ventured into the market, and few finished products have rolled out from the drawing boards.

The slow market penetration could, however, start gathering pace in the next few years, as Wireless USB builds on the market leadership of USB. Data from Taiwan’s Industrial Economics and Knowledge Center (IEK) indicate that more than 90 percent of PCs worldwide adopt USB 2.0. In fact, PCs and related peripherals are expected to be the initial applications of the Certified Wireless USB interface, after which it can expand into mobile and consumer electronics products, such as digital still cameras, A/V players, smart phones, game consoles and PDAs, where USB has also established roots. In the mobile phone sector, Wireless USB is forecast to influence only the smart phones and PDA phones, whose design allows for an additional module.

Market projections from iSuppli place the total market value of Wireless USB at $2.6 billion by 2011 from $15 million in 2007. The most aggressive promoters are chipset providers, such as Taiwan Realtek Semiconductor Corp. and Faraday Technology Corp., and other foreign suppliers, such as NEC and NXP Semiconductors. NXP Semiconductors, for instance, plans to invest €90 million (approximately $140.44 million as of press time) in its Singapore facility for the development of Certified Wireless USB chipsets for use in laptops, mobile phones and consumer electronics products. PC suppliers Dell and Lenovo have also joined the pioneers in this market.

From US$15 million to US$2.6 billion in four years shows the huge growth potential of this market over the next few years and it will not be surprising to see more and more fabless design houses moving into this market.

Global Sources: Budding Wireless USB supply market rides on USB popularity