Wireless Power Moving Ahead, But Standards, Awareness Still At Issue
AUSTIN -- A standards battle, consumer awareness, and real-world use cases are among the challenges facing the fledgling wireless power industry, said attendees at the International Wireless Power Summit. The market shifted from having wireless charging products largely in development to 300 companies reaching the supply chain in 2013, said LeRoy Johnson, senior director-emerging technologies for home furnishings and commercial fixture manufacturer Leggett & Platt, which chaired the event.
In 2013 “tens of millions” of inductively charged products -- including embedded technology and aftermarket accessories -- sold, Johnson said, making this year “finally the year when real volume has hit the market.” Roughly 300 companies are marketing wireless power and that number is expected to grow to 3,000 in 2014, Johnson said. “You're going to see the furniture companies integrating [wireless power technology] into their products,” joining automotive and smartphone companies, he said.
But the wireless charging market remains divided by three camps with incompatible wireless charging implementations: the Wireless Power Consortium, whose Qi technology is most widespread now; PMA, the Power Matters Alliance supported by Proctor & Gamble, AT&T and Starbucks; and the relatively newcomer, A4WP (Alliance for Wireless Power), founded by Samsung and Qualcomm with support from Intel. Building demand for any of the standards will likely depend on one protocol winning out or on a universal solution, which CEA is promoting. Conforming to the universal CEA standard that’s in the works would ensure that all devices are compatible with all other devices, regardless of manufacturer.
Market research firm IHS estimates that 4.5 billion devices with rechargeable batteries will ship in 2017, up from 3.5 billion this year, which IHS analyst Ryan Sanderson called a “huge opportunity” for the wireless charging industry. The market for wired charging devices this year is pegged at $6.7 billion, he said. Over the past few years, manufacturers have begun shipping some devices without charging cables and plugs and IHS expects an increasing number of devices to ship without chargers going forward.
Sanderson cited an initiative by the GSMA (GSM Association) to reduce environmental waste contributed by the short life cycle of mobile phones. Many people change phones every 18 or 24 months and the replacement phones use interchangeable micro USB connectors, Sanderson said. Despite consumer pushback over early attempts to eliminate charging devices from new phone purchases, IHS predicts a collective push from OEM handset makers to stop including charging cables with phones. By 2017, it projects 41 percent of phones will be shipping with a charger in the box, although manufacturers and carriers may still provide chargers through incentive programs, he said.
Consumers expect to get a free charger with a phone, but that model will change to where the charger becomes an accessory, Sanderson said. Once that has become standard practice, consumers may be willing to “go to the next level” when buying a charging device and upgrade to a wireless system, assuming prices are affordable, he said. IHS predicts combined unit growth of transmitters and receivers at 20 million for 2013, with 5 million of those transmitters. He predicted that combined wireless charging unit shipments will reach 1.7 billion in 2023 based on “assumptions that have to come through” including that one of the two top mobile phone makers -- Samsung and Apple -- embed wireless charging receivers in phones. Today, Japan and Korea have the highest uptake of wireless charging devices because Qi transmitters are included with phones, Sanderson said.
Apple hasn’t taken part in the Wireless Power Summit, and while Samsung has overtaken Apple as the leading smartphone shipper, Apple remains a significant player in advancement of wireless charging overall. Apple was granted a patent earlier this week for its own wireless charging solution and is not a part of the other standards groups. “They've definitely looked at it, Sanderson told us, but “they tend to go with their own technology.” A turning point for wireless charging could be if the technology is embedded in the upcoming Galaxy S5. Which standard they would integrate is another question. Samsung S3 and S4s are quietly Qi-enabled, but Samsung is a founding member of A4WP (Alliance for Wireless Power).
Smartphones are the most logical devices for wireless charging but the industry is looking for charging solutions for tablets and laptops as well, Johnson told us. There’s currently a 10-watt cap on charging solutions for portable devices among the three standards, but the groups are working on raising the levels to broaden the reach of the technology, Johnson said.
Wireless charging could easily extend to digital cameras, portable gaming systems and GPS units, although the multi-function smartphone is impacting sales of those devices, Sanderson noted. Farther out, emerging product categories could add to the wireless charging ecosystem, Sanderson said, citing smart glass, estimated to ship 20 million units by 2018 and projected smart watch shipments of 50 million units in the same time frame. Wearable technology and consumer medical devices are other possible use cases, he said. Electric vehicles will present a higher cost and revenue option for the industry, he said.