Wireless Ethernet Gaining Ground in Explosive Industrial Networking Market


Natick, Massachusetts - February 22, 2007 - In a recently completed six-volume market study on global markets and user requirements for wireless and wireline network infrastructure products used in industrial facilities, Venture Development Corporation (VDC) finds extensive deployment of wireless Ethernet (Wi-Fi) networking, with an increasing trend toward even greater usage.

Of the infrastructure products studied, shipments using proprietary protocols, principally in the 900 MHz and 2.4 GHz bands, accounted for the highest share of worldwide shipments in 2006, at about 47% of the total. However, the shipment growth rate for these is forecast at below average, and the shipment share is expected to decline to about 44% in 2011.

Several factors will account for the trend to higher growth in use of wireless standards. These include the established base and familiarity among both engineers and IT departments with IEEE 802.11 and other standards. Advantages of using standard networks include lower prices, interchangeable suppliers and established best practices (including security and interference protection, and ease of installation).

In 2006, products under study incorporating wireless Ethernet IEEE 802.11 standards accounted for almost 44% of worldwide shipments, and are forecast to account for over 48% in 2011. In this explosive market, the highest shipment growth rate is expected for products using the IEE 802.11 standards. Of the total market gain of $868.9 million expected in 2011 compared to the 2006 market, products using wireless Ethernet IEEE 802.11 standards are expected to account for $430.6 million, or almost 50% of the increase.

Above-average growth is also expected in shipments of the infrastructure products under study with use of the mesh networking IEEE 802.15.4 standard and protocols built upon it (most notably ZigBee). These will continue to account for a larger share of shipments as low-power, low-data rate meshed sensor networks find wider acceptance. However, despite the hype, mesh networking is not expected to account for a significant portion of the industrial wireless networking infrastructure market by 2011.

ABOUT VDC

Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of industrial, embedded, component, retail automation, RFID, AIDC, datacom/telecom, and defense markets. VDC has been operating since 1971, when the firm was founded by graduates of the Harvard Business School and Massachusetts Institute of Technology. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management; and formal training in engineering and marketing. VDC's clients include thousands of the largest and fastest-growing technology suppliers in the world and the most successful investors participating in the markets we cover.

For further information about, Industrial Networking Global Market Intelligence Services, contact:

James K. Taylor,
Director, Industrial Automation and Control Practice,
508-653-9000 ext. 121,
jimt@vdc-corp.com

For more information about purchasing this report, contact:

Tim Callahan,
Sales Manager,
508-653-9000 ext. 113,
timc@vdc-corp.com

Tim Shea,
Sales Manager,
508-653-9000 ext. 119,
tims@vdc-corp.com

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