18 January 2016

RF component market to reach $17.54bn by 2022

The global market for radio frequency (RF) components (including filters, duplexer, power amplifiers, antenna switches, and modulators & demodulators) is expected to reach $17.54bn by 2022, according to a new study by Grand View Research Inc.

Growing adoption of consumer electronics including smartphones, tablets, notebooks, set-top boxes and smart televisions is forecasted to fuel industry growth over the next few years. Rising consumer disposable income, particularly in developing countries like India and Brazil - paired with overall improvement in the global economy - may elevate demand significantly, the report reckons. Technological advancements in wireless communications and development in the materials used for manufacturing RF components, such as silicon germanium (SiGe) and gallium arsenide (GaAs), are also expected to drive industry growth.

Increasing popularity and adoption of high-speed networks, such as 3G and 4G, have significantly impacted demand for RF components, notes the report. Technological advancement enhancing antenna efficiency, by replacing traditional filters with advanced tunable filter, may escalate demand over the next seven years. The industry is also poised for growth due to increasing demand across the automotive industry. Increasing effort on the development of advanced and innovative wireless infrastructure may also propel product demand, the report adds.

The power amplifier (PA) segment accounted for over 30% of the overall RF component market in 2014. This is expected to increase over the next few years, due to the increasing prevalence of mixed-mode 3G/4G handsets coupled with a growing emphasis on LTE concept.

Antenna switches are estimated to exhibit rapid growth over the coming years, which may be attributed primarily to increasing experimentation with switch architectures, particularly in higher-end handsets. A growing number of 3G/4G handsets are anticipated to broadly contribute to this rapid growth.

The consumer electronics segment accounted for more than 60% of global revenue in 2014. This is expected to increase over the coming years, due to rising disposable income among consumers, resulting in increasing adoption of consumer electronic products. Increasing consumer spending for smartphone, tablets and other portable electronic devices may spur demand, the report says.

North America accounted for over 30% of global revenue in 2014. Increasing demand for better mobility solutions is estimated to drive regional market growth. The Asia Pacific RF components market is forecasted to see dramatic growth over the coming years, due to the increasing adoption of improved connectivity solutions in the region.

The report lists key players in the RF component industry as Avago Technologies Ltd, Aixtron SE, NXP Semiconductors, RFaxis, STMicroelectronics, Texas Instruments, Renesas Electronics Corp, Fujitsu Ltd and Freescale Semiconductor Inc.

Visit: RF filters/duplexers PAs Antenna switches GaAs IC market

Visit: www.grandviewresearch.com/industry-analysis/