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Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand

Executive Summary

GBI Research’s new report, “Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand”, provides the key information and analysis on the smartphone IC market. The report covers the latest information on the revenue of the ICs used in smartphones such as application processors, connectivity ICs, accelerometers, gyroscopes and so on. The report covers the key market trends in different IC segments with respect to smartphone industry. The report provides market sizing and forecasts by device type. The Smartphone IC report also provides information on smartphone vendors besides the expected market volumes of smartphones by geography. The market shares of key players in different device types are presented in the report.

This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

Growth in the Demand for Smartphones is Expected to Drive IC sales

The demand for smartphones has been growing at a very high rate. According to GBI Research, the overall year on year growth rate of the smartphone market in 2010 was 72%. Smartphone shipments increased to around 301.8 million in the year 2010, from 173 million in 2009. The increasing demand for these devices will have a direct positive impact on the demand for integrated circuits (ICs), such as processors, sensors, controllers, transceivers, power management, and connectivity ICs.

Increasing Support for NFC Based Solutions Will Drive the Demand for NFC ICs

The demand for near field communication (NFC) solutions is set to increase in the next couple of years. The demand for these chips will be sustained by increasing support coming from global mobile operators. At the Mobile World Congress (MWC) 2011, global operators announced their intention of commercializing NFC-based services by 2012. This technology will not only be limited to mobile payments, but is expected to extend to other services and applications such as mobile ticketing, mobile couponing and access control. NFC was the dominant theme at the recent MWC and the market for these solutions will increase as many prominent handset vendors like Nokia, Samsung and RIM include this technology in their smartphones in 2011.

NFC Smartphones Market Share By Geography, Forecast for 2015

Source: GBI Research

New Standards Such as LTE Will Have a Positive Impact on the Semiconductor Content in Smartphones

The demand for higher quality services from smartphone users will drive LTE chipset revenues. The latest smartphones support advanced voice, video and data applications. The high definition (HD) video supported by most high end smartphones stretches 3G networks to breaking point. 3G technologies offer higher bit rates compared to 2G, but given the ever increasing demand for wireless broadband, wireless service providers can now improve the economics of deploying mobile broadband networks; taking advantage of the technological innovation.

Multiple vendors in the semiconductor market are now developing LTE chipsets. Many carriers are now committed to this technology, which is expected to drive the LTE silicon market. The successful deployment of LTE networks will have a positive impact on baseband and radio frequency (RF) manufacturers. Smartphones are going to be the dominant users of multi mode LTE chipsets. Although high-speed downlink packet access (HDSPA) is the dominant 3G technology in mobile shipments, it is forecast that LTE will be the fastest growing technology in 2011.

Mobile Applications Will Drive the Smartphone IC Market

Mobile applications (apps) are continuing to grow across the various operating systems. In July 2008, Apple first launched its App store for mobile applications. Since then, mobile manufacturers, carriers, brands, and end users have nearly all gauged the success of smartphones by the number of available apps. This demonstrates that the main perceived difference between a smartphone and a feature phone is the mobile application software.

The mobile apps market is gaining momentum as more and more smartphone users are getting direct and easy access to app stores. In addition, the app stores have managed to increase app numbers to grow their business. Apple’s App store made up more than 80% of the total market in 2010, followed by Blackberry with approximately 7%.

Addressing the Design Complexities of Combo Chips Will be a Major Challenge Faced by Chip Manufacturers

Combo chips, combining functionalities such as GPS, Bluetooth and FM, are being used across various product lines. Combo chips are made up of radios, and a fraction of a decibel of performance makes a big difference. Most handset manufacturers are not willing to give up on radio performance in order to achieve a smaller size or lower the cost. In these ICs, the radios are millimeters apart and require extreme attention during the multiple stages of the design process. Reducing the interference between radio sub-systems in the combo IC and the rest of the handset is one of the major challenges faced during the system engineering phase. As the system engineers address these issues, the onus is on the analog designer to reduce interference. Analog designers face the challenge of deciding the structure of the semiconductor layers, the placement of the circuits, and keeping spurious products off local oscillator signals. Complex issues such as these must be carefully estimated by the designers, as errors in the design phase can result in huge losses.

Abstract

Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand

Summary

GBI Research’s “Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand“ report provides an incisive analysis of the ICs used in smartphones. The report presents the market size of smartphone ICs such as baseband, application processor, GPS IC, Bluetooth IC, Sensors among others. Increasing user preference for advanced feature sets is expected to boost the demand for smartphone connectivity ICs in the near future.

Scope

• The report consists of the sales revenue forecast of the different components of a smartphone IC used for processing, storage, power management and connectivity.The major drivers, restraints and challenges faced by smartphone IC manufacturers
• Analysis of the smartphone market and the major players in the market are presented.
• Smartphone semiconductor market trends for different segments are presented in this report.
• Market share of major vendors and profiles are available.

Reasons to buy

• Develop business strategies from the market size and growth data given for Smartphone ICs market
• Understand the competitors operating in the Smartphone ICs market
• Devise revenue growth strategy from the market share data.
• Understand the technology trends in the smartphone market and the design developments in the industry.

Companies Mentioned

Broadcom Corporation

Intel

Qualcomm

ST Microelectronics

Samsung Semiconductor

Texas Instruments

Table of Contents

1 Table of Contents
1 Table of Contents 3
1.1 List of Tables 6
1.2 List of Figures 7
2 Introduction 8
2.1 GBI Research Report Guidance 8
3 Global Smartphone IC Market - Overview 9
3.1 Market Overview 9
3.2 Smartphone IC Components - Definitions and Market Trends 10
3.2.1 Smartphone IC Design 10
3.2.2 Discrete versus Integrated Processors 10
3.2.3 System-on-Chips (SoCs) 11
3.2.4 Industry Developments 12
4 Smartphone IC Components 13
4.1 Smartphone IC - Breakdown by Device Type 13
4.2 Applications Processor 13
4.2.1 Stand Alone Processors 13
4.2.2 Integrated Application Processors 14
4.2.3 Multi-Core Processors 14
4.3 Baseband Processor 16
4.3.1 Intel (Compact Multimode LTE/2G/3G platform - XMM 7060) 16
4.3.2 Icera (Espresso 450 Baseband +RF) 16
4.4 Memory 16
4.5 Camera 17
4.5.1 Image Sensor 17
4.6 Power Management 18
4.6.1 Power Management Integrated Circuits 18
4.7 Touch Screen 18
4.7.1 Touch Screen Technology 19
4.7.2 Industry Leading Capacitive Touch Screen Solutions 20
4.8 Connectivity ICs 21
4.8.1 Bluetooth 21
4.8.2 Wi-Fi 21
4.8.3 Global Positioning System 22
4.8.4 Near Field Communication 22
4.8.5 Combo Chips 23
4.9 User Interface/Sensors 24
4.9.1 Accelerometers 24
4.9.2 Gyroscopes 25
4.9.3 Compass 25
5 Global Smartphone IC Market, Market Dynamics 26
5.1 Key Market Drivers 26
5.1.1 Rising Demand for Smartphones will Improve Sales for Chip Makers 26
5.1.2 Rise in Smartphone Shipments will Drive the High-End OLED Display Market 27
5.1.3 Deployment of New Standards Such as LTE (Long Term Evolution) Network will Directly Impact the Semiconductor Content in Smartphones 27
5.1.4 Support for Commercial Near Field Communication Services will Increase the Sales of NFC ICs 28
5.1.5 Mobile Apps Driving Smartphone IC Market 30
5.2 Key Market Restraints 32
5.2.1 Shortage in Supply of Display and Camera Components 32
5.2.2 Mobile Virtualization Technology will Reduce the Chip Count and the Overall Cost of Materials for Smartphones 32
5.3 Key Industry Challenges 32
5.3.1 Fitting More Functions Onto Smaller Spaces 32
5.3.2 Addressing the Design Complexities of Combo Chips 33
6 Global Smartphone IC Market - Analysis and Forecasts 34
6.1 Global Smartphone IC Market Revenue and Forecasts, 2005-2020 34
6.2 Global Smartphone Vendor Analysis 36
7 Global Smartphone Market Analysis and Forecasts Based on Region, 2005-2020 38
7.1 Smartphone Market, Asia-Pacific, Analysis and Forecast, 2005-2020 38
7.2 Smartphone Market, Japan, Analysis and Forecast, 2005-2020 40
7.3 Smartphone Market, North America, Analysis and Forecast, 2005-2020 42
7.4 Smartphone Market, Latin America, Analysis and Forecast, 2005-2020 44
7.5 Smartphone Market, Europe, Analysis and Forecast, 2005-2020 46
7.6 Smartphone Market, Middle East and Africa, Analysis and Forecast, 2005-2020 48
8 Global Smartphone IC Market Analysis and Forecasts on the Basis of Component Type, 2005-2020 50
8.1 Global Processor Component Market Sizing and Forecasts, 2005-2020 50
8.1.1 Global Application Processor Market Sizing and Forecasts 50
8.1.2 Global Baseband Processor Market Sizing and Forecasts, 2005-2020 52
8.2 Global Memory Component Market Sizing and Forecasts, 2005-2020 54
8.3 Global Camera Component Market Sizing and Forecasts, 2005-2020 56
8.4 Global Power Management Component Market Sizing and Forecasts, 2005-2020 58
8.5 Global Touch Screen Component Market Sizing and Forecasts, 2005-2020 60
8.6 Global Connectivity ICs Market Sizing and Forecasts, 2005-2020 62
8.6.1 Wi-Fi 63
8.6.2 GPS 63
8.7 Global User Interface/Sensor Component Market Sizing and Forecasts, 2005-2020 64
8.7.1 Global Accelerometer Market Sizing and Forecast, 2005-2020 66
8.7.2 Global Gyroscope Market Sizing and Forecast, 2005-2020 69
8.7.3 Global Smartphone Compass Market Sizing and Forecast, 2005-2020 72
8.8 Global Smartphone RF/PA Market Sizing and Estimates 75
9 Global Smartphone IC Market, Competitive Analysis, 2010 76
9.1 Application Processors, Competitive Analysis 76
9.2 Baseband Processor, Competitive Analysis 78
9.3 Memory, Competitive Analysis 78
9.4 Camera, Competitive Analysis 78
9.5 Power Management, Competitive Analysis 79
9.6 Touch Screen, Competitive Analysis 79
9.7 Connectivity ICs, Competitive Analysis 79
9.7.1 Wi-Fi, Competitive Analysis 80
9.7.2 GPS, Competitive Analysis 80
9.7.3 NFC, Competitive Analysis 80
9.8 User Interface/Sensors, Competitive Analysis 80
9.8.1 Accelerometers, Competitive Analysis 80
9.8.2 Gyroscopes, Competitive Analysis 80
9.8.3 Compasses, Competitive Analysis 80
10 Global Smartphone IC Market, Key Players 81
10.1 Broadcom Corporation 81
10.1.1 Overview 81
10.1.2 Major Products for the Smartphone Market 81
10.1.3 Recent Developments and Operational Atmosphere 81
10.2 Intel 82
10.2.1 Overview 82
10.2.2 Major Products for the Smartphone Market 82
10.2.3 Recent Developments and Operational Atmosphere 82
10.3 Qualcomm 83
10.3.1 Overview 83
10.3.2 Major Products for the Smartphone Market 83
10.3.3 Recent Developments and Operational Atmosphere 83
10.4 ST Microelectronics 84
10.4.1 Overview 84
10.4.2 Major Products for the Smartphone Market 85
10.4.3 Recent Developments and Operational Atmosphere 85
10.5 Samsung Semiconductor 86
10.5.1 Overview 86
10.5.2 Major Products for the Smartphone Market 87
10.5.3 Recent Developments and Operational Atmosphere 87
10.6 Texas Instruments 88
10.6.1 Overview 88
10.6.2 Major Products for the Smartphone Market 88
10.6.3 Recent Developments and Operational Atmosphere 88
11 Appendix 90
11.1 About GBI Research 90
11.2 Market Definition 90
11.2.1 Smartphone 90
11.2.2 Product Types covered 90
11.2.3 Geographies covered 90
11.3 Glossary of Terms 91
11.4 Methodology 91
11.4.1 Coverage 91
11.4.2 Secondary Research 92
11.4.3 Primary Research 92
11.4.4 Expert Panel Validation 92
11.5 Contact Us 93
11.6 Disclaimer 93

List of Tables

1.1 List of Tables
Table 1: Smartphone Market, Unit Shipments by Vendor (million), 2009-2010 27
Table 2: Smartphone IC Market, NFC Based Smartphone Volumes, Million Units, 2010-2020 29
Table 3: iPhone Applications, Global, Sales Revenue ($bn) and Shipments (billion), 2009-2020 31
Table 4: Smartphone IC Market, Global, Revenue, ($bn), 2005-2020 35
Table 5: Smartphones Market, Global, Vendor Market Share (%), 2009-2010 36
Table 6: Smartphone Market, Asia-Pacific, Smartphone Sales Volume, Millions, 2005-2020 39
Table 7: Smartphone Market, Japan, Smartphone Sales Volume, Millions, 2005-2020 41
Table 8: Smartphone Market, North America, Smartphone Sales Volume, Millions, 2005-2020 43
Table 9: Smartphone Market, Latin America, Smartphone Sales Volume, Millions, 2005-2020 45
Table 10: Smartphone Market, Europe, Smartphone Sales Volume, Millions, 2005-2020 47
Table 11: Smartphone Market, Middle East and Africa, Smartphone Sales Volume, Millions, 2005-2020 49
Table 12: Smartphone IC Market, Application Processors, Global, Revenue ($bn), 2005-2020 51
Table 13: Smartphone IC Market, Baseband Processors, Global, Revenue ($bn), 2005-2020 53
Table 14: Smartphone IC Market, Memory IC, Global, Revenue ($bn), 2005-2020 55
Table 15: Smartphone IC Market, Cameras, Global, Revenue ($bn), 2005-2020 57
Table 16: Smartphone IC Market, PMIC, Global, Revenue ($bn), 2005-2020 59
Table 17: Smartphone IC Market, Touch Screen Module, Global, Revenue ($bn), 2005-2020 61
Table 18: Smartphone IC Market, Connectivity IC, Global, Revenue ($bn), 2005-2020 63
Table 19: Smartphone IC Market, Global, Sensors, Revenue ($bn), 2005-2020 65
Table 20: Smartphone IC Market, Global, Accelerometers, Revenue ($m), 2005-2020 67
Table 21: Smartphone IC Market, Global, Accelerometers, Volume, Million Units, 2005-2020 68
Table 22: Smartphone IC Market, Global, Gyroscopes, Revenue ($m), 2005-2020 70
Table 23: Smartphone IC Market, Global, Gyroscopes, Volume, Million Units, 2005-2020 71
Table 24: Smartphone IC Market, Global, Compasses, Revenue ($m), 2005-2020 73
Table 25: Smartphone IC Market, Global, Compasses, Volume, Million Units, 2005-2020 74
Table 26: Smartphone IC Market, Global, RF/PA, Revenue, ($bn), 2005-2020 75
Table 27: Broadcom, Product Portfolio for Mobile Handsets 81
Table 28: Intel, Product Portfolio for Mobile Handsets 82
Table 29: Qualcomm, Product Portfolio for Mobile Handsets 83
Table 30: ST-Ericsson, Product Portfolio for Mobile Handsets 85
Table 31: Samsung, Product Portfolio for Mobile Handsets 87
Table 32: Texas Instruments, Product Portfolio for Mobile Handsets 88
Table 33: Abbreviations 91

List of Figures

1.2 List of Figures
Figure 1: Top US Smartphones, Integrated vs. Discrete Processors 11
Figure 2: Smartphone IC Market, Touch Screen Technology, Market Share by Revenue, 2010 19
Figure 3: Smartphone IC Market, Touch-Screen Market Breakdown by Geography, %, 2010 20
Figure 4: Smartphone IC Market, Connectivity Technologies 21
Figure 5: Smartphone IC Market, NFC Applications 22
Figure 6: Smartphone IC Market, NFC Smartphones Market Share by Region, 2015 23
Figure 7: Smartphone Market, Unit Shipments by Vendors (million), 2009-2010 26
Figure 8: Smartphone IC Market, NFC Based Smartphone Volumes, Million Units, 2010-2020 28
Figure 9: iPhone Applications, Global Sales Revenue ($bn) and Shipments (billion), 2009-2020 30
Figure 10: Smartphone IC Market, Global, Revenue ($bn), 2005-2020 34
Figure 11: Smartphones Market, Global, Vendor Market Share, %, 2010 36
Figure 12: Smartphone Device Market, Global, Share by Operating System (%), 2010 37
Figure 13: Smartphone Market, Asia-Pacific, Smartphone Sales Volume, Millions, 2005-2020 38
Figure 14: Smartphone Market, Japan, Smartphone Sales Volume, Millions, 2005-2020 40
Figure 15: Smartphone Market, US Smartphone Market Share by OS, %, 2010 42
Figure 16: Smartphone Market, North America, Smartphone Sales Volume, Millions, 2005-2020 43
Figure 17: Smartphone Market, Latin America, Smartphone Sales Volume, Millions, 2005-2020 44
Figure 18: Smartphone Market, Europe Smartphone Market Share by OS, %, 2010 46
Figure 19: Smartphone Market, Europe, Smartphone Sales Volume, Millions, 2005-2020 46
Figure 20: Smartphone Market, Middle East and Africa, Smartphone Sales Volume, Millions, 2005-2020 48
Figure 21: Smartphone IC Market, Application Processors, Global, Revenue ($bn), 2005-2020 50
Figure 22: Smartphone IC Market, Baseband Processors, Global, Revenue ($bn), 2005-2020 52
Figure 23: Smartphone IC Market, Memory IC, Global, Revenue ($bn), 2005-2020 54
Figure 24: Smartphone IC Market, Cameras, Global, Revenue ($bn), 2005-2020 56
Figure 25: Smartphone IC Market, PMIC, Global, Revenue ($bn), 2005-2020 58
Figure 26: Smartphone IC Market, Touch Screen Module, Global, Revenue ($bn), 2005-2020 60
Figure 27: Smartphone IC Market, Connectivity IC, Global, Revenue ($bn), 2005-2020 62
Figure 28: Smartphone IC Market, Global, Sensors, Revenue ($bn), 2005-2020 64
Figure 29: Smartphone IC Market, Global, Accelerometers, Revenue ($m), 2005-2020 66
Figure 30: Smartphone IC Market, Global, Accelerometers, Volume, Million Units, 2005-2020 68
Figure 31: Smartphone IC Market, Global, Gyroscopes, Revenue ($m), 2005-2020 69
Figure 32: Smartphone IC Market, Global, Gyroscopes, Volume, Million Units, 2005-2020 71
Figure 33: Smartphone IC Market, Global, Compasses, Revenue ($m), 2005-2020 72
Figure 34: Smartphone IC Market, Global, Compasses, Volume, Million Units, 2005-2020 74
Figure 35: Smartphone IC Market, Global, RF/PA, Revenue, ($bn), 2005-2020 75
Figure 36: Smartphone IC Market, Application Processors, Market Share by Revenue, %, 2010 76
Figure 37: Smartphone IC Market, Application Processors, Market Share by Volume (%), 2010 77
Figure 38: Smartphone IC Market, Baseband Processors, Market Share by Revenue, %, 2010 78
Figure 39: Smartphone IC Market, PMIC, Market Share by Volume (%), 2010 79
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