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The Wi-Fi chipset market size is forecast to increase by USD 6.59 billion at a CAGR of 5.24% between 2023 and 2028. The market is experiencing significant growth due to the increasing digitalization of businesses and the rising demand for smart devices, including smartwatches and Internet of Things (IoT) devices. With the proliferation of connected home devices and the shift to remote work, high-speed Wi-Fi connectivity has become essential. This has led to an increasing demand for low-power chipsets that can support dual-band technology and handle the growing data traffic. However, the market also faces challenges, such as the need for enhanced security features to mitigate the rising security threats associated with Wi-Fi-enabled devices. As consumer electronics continue to evolve, the market is expected to grow, driven by the need for reliable, high-speed, and secure Wi-Fi connectivity.
The market is experiencing significant growth due to the increasing adoption of smart devices and the Internet of Things (IoT). With the proliferation of Wi-Fi connectivity in consumer electronics, high-speed communication is essential to support data traffic from smartphones, laptops, tablets, and other devices. Low-power chipsets are becoming increasingly popular for connected home devices, enabling energy efficiency and longer battery life. The market is also driven by the need for dual-band technology in smart home ecosystems, remote work, and virtual reality applications. The integration of 5G technology is expected to further enhance network connectivity, providing low latency and bandwidth communications for IoT devices and smart industries.
Data utilization and security concerns are critical factors in the market. Energy efficiency is also a significant consideration, as manufacturing efficiency and wireless standards continue to evolve. The market is poised for continued growth, as the demand for enhanced network connectivity and bandwidth communications increases across various industries and applications.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The dual band segment is estimated to witness significant growth during the forecast period.Dual-band Wi-Fi chipsets have gained significant traction in the Wi-Fi market due to their ability to support two wireless frequency bands, specifically the 2.4 GHz and 5 GHz bands. This dual-band feature offers numerous advantages over single band chipsets, making it a preferred choice for various Wi-Fi-enabled devices. The 2.4 GHz band delivers better coverage and penetrates obstacles more effectively, making it suitable for larger areas or environments with walls and barriers. In contrast, the 5 GHz band provides faster data transfer rates and experiences less interference, making it ideal for high-bandwidth applications such as HD video streaming, online gaming, and large file transfers.
Moreover, the increasing adoption of Wi-Fi technology in various industries, including IoT devices, smart industries, and digital healthcare, is driving the demand for advanced Wi-Fi chipsets. According to market research, The market is projected to grow at a steady revenue rate over the forecast period. The market growth can be attributed to the increasing number of Wi-Fi-enabled devices, the growing popularity of public Wi-Fi networks, and the increasing adoption of Wi-Fi technology in various industries. In terms of device types, smartphones are expected to dominate the market due to their widespread usage and the growing trend of mobile internet connectivity. Overall, the market is poised for significant growth in the coming years, driven by the increasing demand for high-speed and reliable Wi-Fi connectivity across various applications and industries.
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The dual band segment accounted for USD 9.85 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is expected to experience substantial growth in the coming years, particularly in the Asia Pacific (APAC) region. APAC is home to a significant number of electronic device manufacturers, making it the largest market for Wi-Fi chipsets in 2023. The expansion of telecommunication networks in countries like China, Thailand, Malaysia, South Korea, and India is driving the growth of the regional market. Moreover, the consumer electronics industry, which includes smartphones, is anticipated to witness significant growth due to increasing disposable income in developing countries in the region. Wi-Fi technology is a crucial component of Wireless Local Area Network (WLAN) infrastructure, which is essential for the operation of IoT devices and smart industries, including digital healthcare.
The revenue forecast for the market is promising, with key players such as Sony, Samsung, and Qualcomm leading the way. Public Wi-Fi networks are also expected to contribute to the market growth, providing connectivity in various industries and sectors. The market is poised for significant expansion, with the APAC region leading the charge.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing digitalization of businesses is the key driver of the market. The market is experiencing significant growth due to the increasing digitization of businesses. In today's competitive landscape, companies are embracing digital technologies to boost operational efficiency, deliver superior customer experiences, and stay ahead of the curve. According to a recent report by the International Data Corporation (IDC), approximately 69% of Indian organizations have adopted digital transformation, either having a well-defined digital strategy or actively undergoing the process. Virtual reality applications, which demand high bandwidth and low latency, are driving the need for enhanced network connectivity and energy-efficient chipsets. The market is expected to grow as businesses continue to prioritize data utilization and bandwidth communications to meet their evolving digital needs.
Manufacturing efficiency is also a significant factor, as energy-efficient chipsets reduce operational costs and minimize environmental impact. The market is poised for continued growth as businesses worldwide continue their digital transformation journey. The increasing demand for high-speed, reliable network connectivity, particularly in sectors such as healthcare, education, and finance, will further fuel market expansion. With the advancements in technology, Wi-Fi chipsets are becoming increasingly essential for businesses to maintain a competitive edge and meet the demands of their customers.
Augmenting demand for smartwatches is the upcoming trend in the market. The market is experiencing significant growth due to the increasing demand for enhanced network connectivity in various consumer electronics, including integrated smartwatches. Smartwatches, which were once considered mere timekeeping devices, have evolved into multifunctional gadgets capable of providing data utilization, virtual reality experiences, and low latency bandwidth communications. Wi-Fi chipsets enable smartwatches to pair with other devices, such as smartphones, for accessing the Internet, messaging, social media notifications, weather updates, and music streaming.
The market growth can be attributed to the increasing penetration of affordable smartwatches in emerging economies and the entry of traditional watch manufacturers. Manufacturers, such as Huawei, Lenovo, and Zeblaze, are offering advanced features at competitive prices, attracting a large consumer base, particularly among Millennials in countries like India, Brazil, and China. Energy efficiency is another crucial factor driving the demand for Wi-Fi chipsets in smartwatches, ensuring longer battery life and uninterrupted usage.
Rising security threats associated with Wi-Fi-enabled devices is a key challenge affecting the market growth. The market is witnessing significant growth due to the increasing adoption of virtual reality technology and the need for enhanced network connectivity. With the rise of the Internet of Things (IoT), data utilization and bandwidth communications have become essential for various applications. However, concerns regarding data security and energy efficiency remain key challenges in the market. Wi-Fi-enabled devices, including smart home appliances, are increasingly being operated using cloud technology. While this offers convenience and enhanced functionality, it also raises concerns about data privacy and security. Unauthorized access to cloud information could lead to cyber threats, compromising the entire system.
Moreover, Wi-Fi-enabled devices, such as smartphones and laptops, have limited security features when compared to enterprise-grade Wi-Fi routers. The implementation of high-security features in WIFI6-enabled devices increases their cost, making them less accessible to cost-sensitive consumers. To address these challenges, chipset manufacturers are focusing on developing energy-efficient and low-latency Wi-Fi solutions. These solutions not only improve network connectivity and manufacturing efficiency but also enhance the user experience by reducing lag times and improving data transfer speeds. As virtual reality applications become more prevalent, the demand for high-performance Wi-Fi chipsets is expected to increase further.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Espressif Systems Shanghai Co. Ltd: The company offers WiFi chipsets such as ESP32 S2 Series, ESP32 C2 Series, and ESP32 H2 Series.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing adoption of smart devices and the Internet of Things (IoT). With Wi-Fi connectivity becoming a necessity for high-speed communication and data traffic in consumer electronics, low-power chipsets are in high demand. Dual-band technology is a popular choice for connected home devices, enabling seamless integration with smart home ecosystems and supporting remote work and online gaming. As the market shifts towards 5G integration, chipset manufacturers are focusing on enhancing network connectivity, energy efficiency, and bandwidth communications. High-definition streaming, virtual and augmented reality, and smart cities are some of the key applications driving revenue growth in the chipset market. Security concerns are a major factor influencing the market, with Infineon Technologies and NXP Semiconductors leading the way in providing secure solutions. The market is also witnessing increasing adoption in smart industries, digital healthcare, and smart manufacturing, leading to manufacturing efficiency and improved customer relationship management.
The chipset market is expected to witness significant growth in the coming years, with smartphones, computers, and IoT devices being the major contributors. Public Wi-Fi networks, in-store Wi-Fi, and voice-over mobile broadband are also driving demand for advanced Wi-Fi technology. However, privacy concerns and security perimeters are key challenges that need to be addressed to ensure the widespread adoption of Wi-Fi technology. The market is also witnessing the emergence of Wi-Fi 6/6e, Mediatek, Broadcom, and SecurePass as key players, offering enhanced network capabilities, low latency, and improved data utilization. The market is expected to continue its growth trajectory, driven by the increasing adoption of smart devices and the need for high-speed, reliable connectivity.
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Market Scope |
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Report Coverage |
Details |
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Page number |
187 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.24% |
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Market growth 2024-2028 |
USD 6.59 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.88 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key countries |
US, China, South Korea, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ASUSTeK Computer Inc., Broadcom Inc., Cisco Systems Inc., Espressif Systems Shanghai Co. Ltd., GCT Semiconductor Inc., Huawei Technologies Co. Ltd., Infineon Technologies AG, Intel Corp., Marvell Technology Inc., MediaTek Inc., Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp., PERASO INC., Qualcomm Inc., Realtek Semiconductor Corp., Samsung Electronics Co. Ltd., Skyworks Solutions Inc., Sony Group Corp., and Texas Instruments Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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