STRATEGY Analytics says that over the next five years, the market for cellular radio components will grow to more than US$45 billion.
The double digit growth of cellular radio components will be led by basebands, power amplifiers and related front-end components, claims the "Cellular Radio Components Still On a Healthy Trajectory Through 2018" report.
Total production of cellular terminals surpassed 2.3 billion units in 2013, resulting in an increase in sales of radio components to more than US$27 billion. Baseband processors will continue to make up the biggest piece of the bill of material in phones and related terminals, but carrier aggregation, diversity and MIMO in support of higher-speed LTE will put power amplifiers, diversity receive modules, antenna tuners and drain modulators on a strong growth trajectory as well.
In 2018, LTE devices will represent more than 70 percent of the cellular component market, which will include RF switches, filters and duplexers in new partitioning schemes with PAs and other front-end components.
As such, suppliers of RF front ends will need to work hard to diversify their offerings to cover these new parts.