November 21, 2005

With consumers demanding multiple functionalities in one compact device, miniature architecture mobile devices have enhanced the growth of internal/embedded antennas in North American region.

“The ability of the antenna manufacturers to develop small-sized antennas without compromising on performance is going to be a key competitive factor for sustaining revenues in the antennas market,” says Frost & Sullivan Research Analyst Projjal Roy.

The manufacturing of internal/embedded antennas has been on the rise and it is serving as a cost and space effective solution because it is easier to embed the antenna along with other components. Some of the new internal antennas weigh as low as 0.12 grams, helping to reduce the overall weight of end products.

The outsourcing of manufacturing facilities to low-cost regions is another emerging trend in the North American antennas market for mobile devices. In fact, outsourcing accounts for 40 percent of global manufacturing and this has also reduced the cost of components.

The impact of this challenge is anticipated to be very high in 2005, with most of the component manufacturing work shifting to low-cost regions such as China, Taiwan and Eastern Europe. In order to combat this challenge, the short-term solution that could be adopted by smaller market participants is to partner with Asian manufacturers to procure standardized products and utilize internal resources for customized solutions.

“Such alliances are expected to have a positive impact on both partners in the short-term,” says Roy. “North American companies are expected to benefit through a reduced work force while gaining wider market penetration for their products.”

On the other hand, Asian manufacturers can leverage the brand equity of the North American partner to benefit from lower marketing expenditure. Moreover, such long-term partnerships also ensure a steady demand and reduce manufacturing cost.

With new applications and features added on to wireless devices, there is an increasing demand for new antenna designs and development. Wireless technologies such as wireless fidelity (Wi-Fi), wireless interoperable microwave access (WiMax), ultra wide band (UWB) and multiple input multiple output (MIMO) are promising a bright future for antenna production.