Strategy Analytics: RF Power Revenue Declines despite Wireless Base Station Growth

Increasing use of Small Cells and GaN puts Pressure on LDMOS Revenue

Feb 09, 2016, 10:09 ET from Strategy Analytics

BOSTON, Feb. 9, 2016 /PRNewswire/ -- The total number of base station sectors will continue to increase in response to the rapid growth in wireless data traffic, but  most of these sectors will be low power.

Eric Higham, Service Director, Advanced Semiconductor Applications commented: "The growth of small cell deployments will mask a big contraction in the number of new macrocell sectors. GaN devices are quickly capturing share in the macrocell base station sectors that will deploy and the combination of these two factors will result in rapidly declining revenue in the LDMOS base station RF power amplifier market."

According to the new Strategy Analytics Advanced Semiconductor Applications (ASA) service report "Base Station RF Amplifier Forecast and Outlook: 2014 – 2020", base section sector deployment will grow with a compound average growth rate of 7 percent per year, but small cells will represent nearly 85% of the sectors deployed in 2020. Because of this shift to small cells, RF amplifier revenue will decline with a compound average growth rate of 8 percent over the forecast.

Chris Taylor, Director, RF & Wireless Components added: "New releases of the LTE standard will allow higher order modulation schemes, more carrier aggregation, higher order MIMO and beamforming. These developments and the growth of small cells point to more RF equipment, but not more macrocell sectors in future"

Click here for the report: Base Station RF Amplifier Forecast and Outlook: 2014 - 2020

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies.  With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.  www.StrategyAnalytics.com 

US Contact: Eric Higham, +1 617 614 0721, ehigham@strategyanalytics.com

Additional Contact: Chris Taylor, +1 617 614 0706,  ctaylor@strategyanalytics.com

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