March 19, 2008 — As nanotechnology aids in improving the performance of wireless handsets, the market for nanotech-enabled wireless components is expected to grow rapidly. Pioneer Consulting’s latest report, entitled, “Nanotechnology in Wireless Handsets,” forecasts that the market for nanotech-enabled components in wireless handsets will grow at a CAGR of 70% from 2007 to 2012 and will reach $15 billion by the end of 2012.

Among the various handset components, the largest market share will be for batteries, followed by displays, processors, and memories. According to the report, the only components that are currently using nanotechnology include RF and display modules, while the other components will undergo a phased introduction between now and 2012.

Aditya Kaul, senior analyst of the emerging wireless practice at Pioneer, says, “Although the short-term investments required for introducing nanotechnology into handset components are huge, the stakeholders in the handset industry will need to focus on the long-term advantages that nanotechnology has to offer.”

Kaul adds that “the cost-benefit analysis of the various nanoprocesses and nanomaterials leads us to believe that improved performance of handset components outweighs the initial investment risks taken by stakeholders. In the long-run, the incremental process and material improvements coupled with the large economies of scale will lead to lower Bill of Material costs, allowing for a subsequent ROI.”

Some of the nano processes and materials included in the report are carbon nanotubes, buckyballs/fullerenes, spintronics and quantum dots. Other product-specific nanomaterials included are hydrocarbon fuel membranes, electron based LEDs, and bulk acoustic oscillators.