With Wi-Fi appearing in mobile PCs, home routers, and phones, there has been much hype around Wi-Fi crossing over into the consumer electronics (CE) space, reported In-Stat. But the CE space is just warming up to Wi-Fi, with some device segments, such as gaming consoles and handheld games, welcoming Wi-Fi with open arms,the high-tech market research firm said. In other device segments, such as digital video camcorders and standalone personal video recorders (PVRs), the door has been kept shut on Wi-Fi.

“The beauty of Wi-Fi’s adoption into high-volume CE categories is that even single-digit attach rates can translate into millions of Wi-Fi shipments,” said Gemma Tedesco. “For example, even with sub-10% attach rates expected for set-top boxes and digital TVs in 2010, Wi-Fi-enabled shipments in these device segments are still expected to number in the millions.”

Recent research by In-Stat found the following:

- Digital Rights Management, combined with a lack of consumer understanding around multimedia home networking, may continue to hinder Wi-Fi's uptake into CE devices designed to access and/or distribute online content.

- Although Wi-Fi offers networking capabilities not provided by wireless personal area network (PAN) technologies, there are some device segments — such as digital video camcorders, digital still cameras and printers — where Wi-Fi faces technology competitors such as the emerging Wireless USB.

- Handheld game shipments with embedded Wi-Fi are expected to reach 28 million units in 2006. Gaming consoles with embedded Wi-Fi are expected to ramp up to approximately 5 million by the end of 2006, driven by the fourth quarter release of Sony’s PlayStation 3 and Nintendo’s Wii.

- 802.11n is expected to drive Wi-Fi uptake into core digital living room devices such as digital TVs and set-top boxes.

Major vendor moves in the CE space include Apple’s planned launch of a Wi-Fi media adapter in 2007, and Microsoft’s release of its Wi-Fi-enabled Zune portable digital music player in late 2006. Innovative Wi-Fi-enabled CE devices are available from a variety of vendors — MusicGremlin, Slim Devices, Sonos, Sony, Nintendo, Sharp, Philips, Free, Sirius, Buffalo, D-Link, Linksys and many others.

But, to really push Wi-Fi into specific CE segments, vendors will have to devote significant marketing resources, and, most important, provide a skillful implementation of Wi-Fi that really demonstrates the technology’s value-add.

The research,“Consumer Electronics Devices Warming Up To Wi-Fi”( No. IN0603244WS), examines Wi-Fi attach rates across CE device segments. Detailed analysis, forecasts and Wi-Fi technology adoption breakdowns are given for specific stationary and portable CE device subsegments. Forecasts for home aggregators, including wireless routers and gateways, as well as external clients and embedded Wi-Fi in laptops, are provided. Also included is a look at the growing market for Wi-Fi-enabled phones.