As per a recent report, titled "Communications Semiconductor Market Forecast 2009-2014” by Linley Group, with the recent renewed enterprise spending during the first half of 2010, the wired communications semiconductor market has come back on track by achieving a 20 percent growth in the year 2010.
In a release, Joseph Byrne a senior analyst at The Linley Group said, "As data centers continue their transition to new networking technologies, such as 10 Gigabit and faster Ethernet, we anticipate a strong recovery this year and potential for modest growth in 2011 and thereafter. We also see emerging economies, such as India, contributing significantly to growth in overall networking IC sales. Although visibility remains limited because of volatile economic conditions, we expect that the communications semiconductor market will continue to expand through 2014."
Some of the key points highlighted in the report are, Ethernet ICs will be the fastest growing category in the year 2010, with the Ethernet ASSP revenue expected to rise by almost 40 percent. During the five-year period between 2009 and 2014, multicore processor sales are projected to increase and grow at a compounded annual growth rate (CAGR) of 28 percent.
The report reveals that network processors continue to remain one of the fastest growing categories, with an estimated CAGR of 11 percent. Carrier investment for supporting new technologies like IPTV (News - Alert) and 4G cellular is expected to grow in the coming years in areas like PON, home networking, FPGAs, and embedded processors.
And finally, deployment of massive data centers for supporting initiatives like cloud computing may accelerate adoption of 40 Gigabit and 100 Gigabit Ethernet.
By using careful analysis of public financials of OEMs and chip suppliers, along with enterprise and carrier spending trends, The Linley Group has developed this forecast report. In-depth information on wired-communications semiconductor product categories like network processors, 40 and 100 Gigabit Ethernet components, PON and VDSL transceivers, security accelerators, network search engines, and optical-transport ICs are provided in the report. Also forecasts for PCI (News - Alert) Express and RapidIO interconnect chips, CPU IP, FPGAs, and embedded microprocessors which include multicore processors are a part of the report.
Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.
Edited by Erin Monda