More Bands, LTE, Carrier Aggregation and MIMO Will Counter ASP Erosion Through 2018
Over the next five years, growth in cellular phones and related devices will push the market for cellular radio components to more than $45B led by basebands, power amplifiers and related front-end components, as detailed in "Cellular Radio Components Still On a Healthy Trajectory Through 2018" a new report from Strategy Analytics. The data table report with overview analysis is available from the Strategy Analytics RF & Wireless Components strategic advisory service.
According to Christopher Taylor, Director, "Total production of cellular terminals surpassed 2.3 billion units in '13, resulting in an increase in sales of radio components to more than $27 billion. Baseband processors will continue to make up the biggest piece of the bill of material in phones and related terminals, but carrier aggregation, diversity and MIMO in support of higher-speed LTE will put power amplifiers, diversity receive modules, antenna tuners and drain modulators on a strong growth trajectory as well."
According to Stephen Entwistle, head of Strategic Technologies, "In 2018, LTE devices will represent more than 70 percent of the cellular component market, which will include RF switches, filters and duplexers in new partitioning schemes with PAs and other front-end components. Suppliers of RF front ends that do not work hard to provide OEMs with these new parts face marginalization in cellular."
SOURCE: Strategy Analytics