USB Market - Overview

With over 6 billion devices using standard USB connectivity, USB has become the de-facto standard for connecting peripherals.

From PCs to digital cameras to USB flash memory to PDAs to set top boxes to mobile phones to consumer electronics, USB has provided the seamless connectivity solution to enable high speed, driver-less interface between the devices.

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The Universal Serial Bus (USB) continued to live up to its name in 2004, showing up in a number of product segments, including PCs, PC peripherals, consumer electronics and communications. A number of types of USB serve these various markets, including low-speed, full-speed, high-speed, On-The-Go, and the newest entrant, Wireless USB.

In 2004, PCs and PC peripherals have seen continued transition to high-speed USB. The consumer electronics segment has seen continued adoption of both full- and high-speed USB, especially in digital cameras and set top boxes. In the communications segment, mobile phones began to adopt full-speed USB in large numbers in 2004.

Wireless USB will allow the USB standard to operate wirelessly via an Ultra Wideband radio Phy and MAC. It promises to have an effect particularly on those portable USB-enabled devices that make frequent ad-hoc connections, such as portable digital audio players, digital still cameras and digital camcorders.

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This IDC study highlights the revenue and unit market share for flash memory card and USB flash drive manufacturers in 2004. In 2004, the flash memory card market grew 43% in revenue year over year to reach $5 billion. The UFD revenue grew 89%. While 2004 marked the year of product portfolio diversification into the MP3 market, flash card and UFD vendors will distinguish themselves in 2005 by portfolio diversification to include innovative security and software-enabled intelligent flash drives.

"As territory battles and price competition in the flash card and UFD markets continue, it will be increasingly important for the remaining flash card vendors to position themselves for survival by ensuring they have the intellectual property, secured NAND supply, and product engineering teams in place to quickly react to the consumer market needs of the near future," said Celeste Crystal, senior research analyst, IDC Semiconductors..."

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Revenue from Universal Serial Bus flash drives will rise by 64 percent in 2005, to $2.4 billion. It will grow at a compound annual rate of 15 percent between 2004 and 2010, fueled partly by demand for smart USB drives.

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