Market Research Report
Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand
|Published by||GBI Research||Product code||200295|
|Published||Content info||93 Pages
|Smartphone Integrated Circuits (IC) Market to 2020 - Greater Appetite for Connectivity ICs Including Wi-Fi, Bluetooth and GPS will Increase Demand|
|Published: May 24, 2011||Content info: 93 Pages||
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.
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.