ZigBee market explosion forecast for 2006

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25 August 2004 News

Barely a blip on the radar today, but in less than three years, the market for ZigBee devices is set for explosive growth. ZigBee is the new low-power, short-range wireless sensor and control technology. In a new study, ABI Research provides an overview of this new technology, along with market forecasts and examination of technical issues.

It forecasts shipments of ZigBee devices in 2005 at about 1 million. But by the end of 2006, the group's moderate forecasts see ZigBee-equipped device shipments skyrocketing to over 80 million units worldwide.

According to ABI Research analyst Chris Lopez, the industrial sector will be the first to adopt ZigBee devices, with home networking buyers following about a year later. He says that 2006 will be the year ZigBee starts to gain significant traction, for two reasons. "First", he says, "802.15.4b will be approved. This extension of the basic standard will simplify and improve interoperability worldwide. Secondly, ZigBee IC vendors who, today, mainly target European and American manufacturers, will be ready to turn their attention to the huge markets of Asia."

While some vendors have brought out products of this type already, the ZigBee Alliance has been hammering out a standard for the new wireless communication technology for something like two years. According to Lopez, the long wait has occurred because the companies in the Alliance "wanted to make sure it is absolutely foolproof. If it does not always work right out of the box, buyers will reject it.

"Now it appears that agreement on the standard is finally in sight, and we should see ratification in the very near future. Once it is published, ABI Research expects a gradual but progressively steep decline in sales of non-compliant ZigBee-like devices."

For more information see www.abiresearch.com.

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