Global shipments of Wi-Fi ICs increased about 28% in 2009, compared to 2008, according to data from ABI Research.

The total revenue achieved an estimated compound annual growth rate (CAGR) of 18% between 2009 and 2014. Wi-Fi IC placement in mobile handsets grew by more than 50% in 2009 and Wi-Fi-enabled handsets will account for 40% of the total of handsets shipped in 2014.

Celia Bo, industry analyst at ABI Research, said: “Despite the uncertain macroeconomic situation, total market demand for Wi-Fi ICs is expected to keep growing. The demand for Wi-Fi ICs in mobile devices and consumer electronic devices are the two key engines for Wi-Fi IC’s market growth.”

The portable media players with Wi-Fi have seen strong growth that is expected to continue through 2014. The total shipments of Wi-Fi enabled devices increased 33% in 2009, compared to 2008, due to the increased adoption of Wi-Fi into devices such as digital still cameras, digital camcorders, TVs, DVD players and set-top boxes (STBs). Fast growing rate was seen in camcorders, TVs and set-top-boxes, according to the research.

Philip Solis, practice director, said: “The most significant variation in Wi-Fi enabled products is the protocol type of the embedded Wi-Fi. 802.11g has had the highest attach rate over the past few years, accounting for 50% of total Wi-Fi IC shipments in 2009.

“But 802.11n revenue surpassed that of 802.11g in 2009 as a result of higher ASPs; and 802.11n shipments will surge ahead of 802.11g starting this year. Between 2009 and 2014, unit shipment CAGR is forecast to reach 41%.”