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The report, entitled Worldwide WLAN Semiconductor Market Forecast and Review, 2001-2006, said WLAN semiconductor sales revenues will increase from $331m (£214m) in 2001 to $1.16bn (£749m) in 2006.
The forecast says sales growth will be fuelled by decreasing power, size and cost requirements that will enable embedded solutions to become the preferred solution.
"IDC expects PC vendors will increasingly shift towards an embedded approach as the demand for mobile connectivity makes WLAN an attractive offering within notebook PCs," said Ken Furer, research analyst with IDC's semiconductor group.
The report concludes that dual-band chipsets will also be a major trend in the marketplace. IDC expects the dual-band approach to move to the forefront in 2004 as confidence in backward compatibility to 802.11b and future proofing to 802.11a becomes significant in the selection process.
The report looked at key vendors in the market including Intel, Intersil, Agere, Cirrus Logic, Texas Instruments, Philips Semiconductors and Cisco Systems.
Intersil remains the top supplier, with Agere a close second in a marketplace where WLAN semiconductor vendors have posted strong sales growth in the first half of 2002, the report says.