Welcome to a guest blog - on the topic of ZigBee and HAN devices and the rapid potential growth in certain markets - by Matthew Scherer, Research Analyst at databeans.Lately, talk of energy conservation on national, regional, and community levels has received considerable buzz.
The power grid, in particular, has become an attack point in a global effort to "go green" and reduce billions of dollars in electricity waste that is simply lost each day into thin air. This is because the current grids found across much of the modern world remains an aging infrastructure based on 19th-century technology.
In recent years, the energy sector has turned to focus on building a so-called "smart grid". This umbrella term basically means using information technology to modernize both transmission and distribution grids, making them more efficient and more easily monitored. One possible solution uses RF mesh networks and automated control systems to manage and monitor the delivery and usage of power.
In particular, it is the short range 802.15.4 protocol or "ZigBee" which has risen above competing WPANs, such as Bluetooth, to become the specification of choice in these smart grid networks.
For example, back in 2009, ZigBee "Smart Energy" was officially selected by the U.S. Department of Energy and the National Institute of Standards and Technology (NIST) as an initial interoperable standard for home area network or "HAN" devices. Today, it is the market leading wireless HAN standard with over 40 million smart meters being installed around the world.
Going forward, the technology looks to continue its role as the favourite future technology of utilities providers. In Europe, the European Smart Metering Industry Group (or ESMIG) continues to work closely with the ZigBee Alliance in order to help define interoperable communications standards for smart metering technology across the EU.
This is significant, as ZigBee is the first open standard to be endorsed by ESMIG. The story is similar in North American markets as much of the planned infrastructure efforts will incorporate low-power wireless technology based on the ZigBee protocol.
Ultimately, this current and potential growth all spells out significant opportunities for ZigBee semiconductor suppliers.
The semiconductor research firm Databeans, my own company, has seen an increase of 69 percent for discrete ZigBee IC shipments since 2007. In 2010, Databeans also expects that global discrete ZigBee IC sales will reach $29 million, but will grow at an incredible 25 percent annually on average over the next five years, reaching $88 million in global sales by 2015, however much of the designs using Zigbee will not use discrete ICs, but rather microcontrollers with Zigbee peripherals on-chip.
For years ZigBee was considered a "problem child" standard. It had features that allowed it to fit in as a companion to the Bluetooth standard, operating in the same 2.4GHz unlicensed radio spectrum, but didn't have enough advantages to lure product developers away from cheaper RF designs.
For example, migrating to ZigBee from a propriety standard in the 433MHz band would only make sense if there were dramatic improvements in security or reliability to be had. Yet, home metering and the emergence of the smart grid will be just the push ZigBee needs to become a household name.
Its worth remembering that just a few years ago Bluetooth's future was up in the air as well, that is until government legislation made hands free calling mandatory in several U.S. states, thus jump starting the market for Bluetooth headsets.
Matthew Scherer, Research Analyst, databeans
For example, back in 2009, ZigBee "Smart Energy" was officially selected by the U.S. Department of Energy and the National Institute of Standards and Technology (NIST) as an initial interoperable standard for home area network or "HAN" devices. Today, it is the market leading wireless HAN standard with over 40 million smart meters being installed around the world.
Going forward, the technology looks to continue its role as the favourite future technology of utilities providers. In Europe, the European Smart Metering Industry Group (or ESMIG) continues to work closely with the ZigBee Alliance in order to help define interoperable communications standards for smart metering technology across the EU.
This is significant, as ZigBee is the first open standard to be endorsed by ESMIG. The story is similar in North American markets as much of the planned infrastructure efforts will incorporate low-power wireless technology based on the ZigBee protocol.
Ultimately, this current and potential growth all spells out significant opportunities for ZigBee semiconductor suppliers.
The semiconductor research firm Databeans, my own company, has seen an increase of 69 percent for discrete ZigBee IC shipments since 2007. In 2010, Databeans also expects that global discrete ZigBee IC sales will reach $29 million, but will grow at an incredible 25 percent annually on average over the next five years, reaching $88 million in global sales by 2015, however much of the designs using Zigbee will not use discrete ICs, but rather microcontrollers with Zigbee peripherals on-chip.
For years ZigBee was considered a "problem child" standard. It had features that allowed it to fit in as a companion to the Bluetooth standard, operating in the same 2.4GHz unlicensed radio spectrum, but didn't have enough advantages to lure product developers away from cheaper RF designs.
For example, migrating to ZigBee from a propriety standard in the 433MHz band would only make sense if there were dramatic improvements in security or reliability to be had. Yet, home metering and the emergence of the smart grid will be just the push ZigBee needs to become a household name.
Its worth remembering that just a few years ago Bluetooth's future was up in the air as well, that is until government legislation made hands free calling mandatory in several U.S. states, thus jump starting the market for Bluetooth headsets.
Matthew Scherer, Research Analyst, databeans
