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Issue #2003 - 18 (June 2003)
(Updated June 4, 2003)


UWB Technology Expected to Take Market Share for Video Technology in Home

Europe : Ultra Wideband (UWB), a wireless technology based on modulated pulses of energy, stands to capture technology market share over the next several years in a variety of applications, especially the distribution of wireless video, audio and data, in home and consumer networking devices.

The lack of a definable standard is the single biggest shortfall to the development of a sustainable UWB market. In addition, a battle between entrenched wireless carriers and new supporters of UWB technology has unfolded recently, possibly hindering the market potential for UWB. Joining the wireless carriers are GPS and avionics equipment makers, among others, who fear UWB making unwanted inroads into their territory. Collectively, these companies have deep pockets and considerable power to lobby against UWB technology. A more unified front must be maintained by the UWB community to thwart these efforts, in order for the technology to thrive.

"The FCC has spent over two years of extensive testing in order to devise a guide for the use of UWB," explains Edward A. Rerisi, Director of Research at ABI. "Until a standard is set where all communications segments are satisfied, this technology will continue to experience resistance." 

ABI's report, "Ultra Wideband (UWB) Wireless -- An Evaluation of Technology Prospects and Potential Market Applications," examines if UWB will be the next generation in wireless communications, for diverse applications including wireless LANs and radar. The total global shipments for UWB-enabled electronics and chipsets could reach 45.1 million units by 2007, with resulting revenues of $1.39 billion by the end of that year. Projections include shipments to market segments including communications, imaging, vehicles, locators and military/government use. Forecasts are provided for twenty different market segments, and the activities of and analyses for over 25 market participants are also provided.

The rosiest prospect for widescale deployment of UWB exists with the consumer electronics (CE) industry. The concept of sending data, video and audio content wirelessly seems to be the near-term future of networking information and distributed computing. "Wired networking is cost prohibitive when compared to that of wireless solutions," explains Vamsi Sistla, Senior Analyst and author of ABI's report, "Entertainment Networking ICs." "Wireless' projected success is derived from the rapid drop in silicon prices, in tandem with consumers' reception to the inherent benefits of mobility and flexibility." 

Already low and decreasing costs of WiFi implementation, gear and deployment are some of the main drivers of WiFi technologies. According to ABI forecasts, UWB chipset shipment growth for video and host device applications will more than double in the years 2005 and 2006, from 1.5 million UWB IC shipments in the year 2004 to 3.4 million UWB IC shipments in the year 2005, and to 7.7 million UWB IC shipments in the year 2007.

ABI's report, "Entertainment Networking ICs," addresses the present and future of home networking ICs in the CE industry. The technologies covered in the study include 802.11b, 802.11a, and 802.11g, other hybrid wireless technologies enabling WLAN home entertainment, UWB, and Powerline (HomePlug 1.0 and others) communications. ABI presents quantitative forecasts for the world market, for each "no wire" technology, including IC shipments from 2002 to 2008, ASP and revenue. A clear analysis of the networking technologies is presented with detailed forecasts and market trends in the chip sector. In addition, many of the chipmaker companies have been profiled with detailed analyses of their technology offerings and future roadmaps.

MobileInfo Comments and Advisory: UWB technology is gradually getting enough recognition as a suitable technology in a number of areas. Home networking of various devices is an important application. 

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.

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