SAN JOSE, Calif. – Cars will increasingly become mobile hot spots, generating Wi-Fi chip revenues of $100 million by 2015, according to a new report from In-Stat. The wireless autos will make up a drop in the bucket of what In-Stat anticipates will be a billion unit market for Wi-Fi chips by 2012.
“The cost of adding mobile hotspot ability to a broadband-capable system, such as OnStar, is only roughly $25 per car or less,” said Allen Nogee, an In-Stat principal analyst, speaking in a press release. “Ford has announced it is doing just that, adding Wi-Fi to all SYNC-2-equipped vehicles starting this year," he added.
Automotive is one of several areas where Wi-Fi will see its fastest growth in the next five years, In-Stat projected. Other rapidly rising areas include mobile Internet devices, e-readers, and DVD/Blu-Ray players.
Cellphone handsets have now passed notebook PCs as the largest market for Wi-Fi chips, the report said. Notebooks and handsets are each expected to have revenue of more than $1 billion in Wi-Fi chips in 2015, it forecasted.
Notebooks and handsets will continue to be drivers for the Wi-Fi chip market over the next five years. Other emerging drivers will be personal media players and digital televisions, In-Stat said.