ABI Research sees RF Power Amplifier Vendors Looking to New Markets and New Technology, as the Wireless Infrastructure Market Contracts and Consolidates.

OYSTER BAY, N.Y. -- A new ABI Research study of the wireless base station RF power amplifier market has concluded that three factors will determine the shape of the sector over the next five years.

"RF Power Amplifiers: Equipment and RF Power Device Analysis for Cellular Infrastructure Markets" examines the economic and technical realities facing designers and users of these RF power amplifiers, and illuminates the interdependent relationship of RF power semiconductors to RF power amplifiers.

According to Lance Wilson, research director for wireless infrastructure at ABI Research, the study identifies three developments that all vendors in this market will need to take into account.

Market consolidation, as predicted by ABI Research in 2004, has altered the industry landscape: falling prices, cost pressures and reduced overall market demand have resulted in a cutthroat competitive business environment. This trend is set to continue.

Second, "The realization that the Total Available Market (TAM) is decreasing is really starting to hit home with players in this market," says Wilson. "Depending on their market position, companies will need to take a hard look at their commitment to remaining in this business. Indeed, some companies' very survival may depend on their ability to diversify to new sectors beyond wireless infrastructure."

Some vendors are trying to work around this difficulty by offering more vertically-integrated base station semiconductor product lines, but, Wilson observes, "it's a tough sell because of the small size of this extremely competitive market."

Finally, a new technology looks set to change the nature of the market. Gallium Nitride (GaN) is a good choice for use in certain types of switch-mode high-efficiency amplifiers. In 2004, such products were "just a glimmer on the horizon." Designs lacked refinement, and there were questions around GaN's reliability and ease of manufacturing. However the past two years have seen significant progress on all those fronts, and according to ABI Research's analysis, GaN looks as though it could pose a very credible threat to the dominance of silicon LDMOS by 2011.

"RF Power Amplifiers" forms a part of two ABI Research's subscription Services, Wireless Infrastructure Research Service and Wireless Semiconductors Research Service, which also contain a variety of research reports, regular market updates, forecast and industry databases, ABI Insights and analyst inquiry time.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For information visit www.abiresearch.com, or call +1.516.624.2500.