Enjoy complimentary customisation on priority with our Enterprise License!
The Wi-Fi Chipset Market size is estimated to grow at a CAGR of 5.78% between 2022 and 2027. The market size is forecast to increase by USD 7,019.03 million. The growth of the market depends on several factors, including the increasing digitalization of businesses, the growing adoption of smartphones and tablets globally, and growing Internet penetration globally. A chipset is a crucial component in wireless communication devices, enabling the devices to connect to wireless local area (Wi-Fi) networks. These chipsets are embedded into various electronic devices, such as smartphones, tablets, laptops, routers, smart home devices, and IoT (Internet of Things) gadgets.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
One of the key factors driving the market growth is the growing Internet penetration globally. There has been an increase in internet penetration across the globe over the last decade which has significantly contributed to the growth of the market. For example, as per the International Telecommunication Union (ITU), in 2022, around 66% of the global population, or an estimated 5.3 billion individuals, used the Internet.
As a result of this increase in the adoption of the Internet has fuelled the demand for Wi-Fi-enabled devices and infrastructure, subsequently boosting the need for Wi-Fi 6, Wi-Fi 6E and Wi-Fi 7 chipset. Furthermore, the growing access to the Internet has fuelled the demand for electronics such as smartphones, laptops, tablets, and other Wi-Fi-enabled devices which is positively impacting the market growth. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the market growth is the growing demand for smartwatches. Integrated smartwatches utilize Bluetooth or Wi-Fi in order to connect with other computing devices, such as smartphones, to access smart features. By leveraging Bluetooth and Wi-Fi, it enables users to access the Internet, receive and send messages, receive social media notifications and weather updates, and listen to music.
Furthermore, factors such as the rising penetration of low-cost smartwatches in developing economies and the entry of several traditional watch manufacturers into the market are expected to fuel the growth of smartwatches. Additionally, many manufacturers, such as Huami, Lenovo Group Ltd. (Lenovo), and Zeblaze, are providing advanced features in smartwatches at affordable prices. Hence, such factors are expected to drive market growth during the forecast period.
The growing miniaturization of electronic devices is one of the key challenges hindering market growth. The rise in miniaturization of electronic devices has forced Wi-Fi 6, Wi-Fi 6E and Wi-Fi 7 chipset manufacturers to minimize the size while maintaining manufacturing costs. As a result, it significantly increases design complexity and the cost of manufacturing. There is a decline in the sizes of electronic circuits and chips due to rapid technological advances and the trend of miniaturization, but there is an increase in demand for high performance as well.
Additionally, the advancement in technology and the emergence of compact devices, such as smartphones, tablets, and smartwatches, have generated a massive demand for small-sized WIFI chipsets. As a result, market players have to upgrade their products with more advanced and miniaturized chipsets to cater to the demand from consumers. Hence, such factors are expected to hinder market growth during the forecast period.
The dual-band segment is estimated to witness significant growth during the forecast period. This segment plays an essential role in modern wireless communication by supporting two frequency bands, namely, the 2.4 GHz band and the 5 GHz band. There is increasing popularity for dual-band in a variety of Wi-Fi-enabled devices due to its several advantages when compared to single-band chipsets. The main feature of dual-band chipsets is their capability to offer greater flexibility and improved performance in various networking environments.
Get a glance at the market contribution of various segments View Free PDF Sample
The dual-band segment was the largest segment and was valued at USD 6,418.27 million in 2017. The 2.4 GHz band is ideal for use in larger areas or environments with walls and barriers as it provides better coverage and can penetrate obstacles more effectively. Furthermore, the 5 GHz band is suitable for high-bandwidth activities such as HD video streaming, online gaming, and large file transfers as it offers higher data transfer speeds and experiences less interference. One of the prominent semiconductor manufacturers which is known for its networking and wireless communication solutions is Broadcom. This company offers dual-band Wi-Fi chipsets for various applications such as home networking equipment and smartphones. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The advancement in technology is expected to fuel the consumer devices segment which in turn will increase the market. Consumer electronics leverage Wi-Fi chipsets to offer wireless connectivity, enabling users to access the internet, communicate with others, and enjoy a wide range of digital services and entertainment. One of the main devices which significantly use Wi-Fi connectivity is the smartphone. Wi-Fi 6, Wi-Fi 6E And Wi-Fi 7 chipset enable users to access social media, web browsing, video streaming, or online gaming by allowing smartphones to connect to wireless networks, offering high-speed data transmission and seamless internet access. Hence, such applications are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period. One of the main factors which are significantly contributing to the global market in APAC is the presence of several prominent manufacturers in the region. Additionally, the growth of telecommunication industries in many APAC countries, especially, China, Thailand, Malaysia, South Korea, India, and other developing countries is positively impacting the market growth in the region. Some of the key dominant players that are engaged in the consumer electronics and smartphone industries in APAC include Sony, Samsung, LG, Toshiba, and Panasonic. Hence, such factors are expected to drive market growth in the region during the forecast period.
The market industry 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 and forecasting strategies.
Global Market 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.
Broadcom Inc: The company offers WiFi chipsets such as solutions for the WiFi 7 ecosystem and WiFi 6 and 6E.
Cisco Systems Inc: The company offers a WiFi chipset called Cisco Aironet wireless chipsets TD p4055435.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 report forecasts market growth by revenue at global, regional & country levels and provides
market trends and analysis and growth opportunities from 2017 to 2027.
The Market is thriving due to the widespread use of wireless devices and Wi-Fi connections across various industries and applications. The increasing demand for data consumption driven by streaming services and bandwidth-intensive activities is fueling the need for more efficient and powerful Wi-Fi technologies. The market is witnessing growth in IoT devices, including wearables and industrial IoT applications, which require reliable and high-speed wireless connectivity. Advancements in the Wi-Fi standard have led to higher data rates and increased capacity, enabling Smart Homes and Cities to become more connected.
Wirelessly connected smart homes and smart city solutions rely on robust Wi-Fi infrastructure to support their functionalities. In the Business Wi-Fi Network segment, enterprise-grade Wi-Fi chipsets are essential for providing high-speed connectivity, managing large device counts, and ensuring security features. The Telecommunication Infrastructure sector benefits from public Wi-Fi networks, hotspots, and telecommunications infrastructure, which enable widespread connectivity. With the rise of Remote Work, home Wi-Fi networks play a crucial role in supporting remote and flexible work arrangements.
However, the Wi-Fi Chipset Market faces challenges such as Regulatory Difficulties related to legal specifications and limitations in unlicensed frequency ranges, as well as concerns about Technology Obsolescence due to economic factors and geopolitical unrest. Competition in the market leads to price wars and impacts profit margins. Integration Challenges, Power Consumption, Data Privacy Issues, and the need for ongoing innovation are also significant factors shaping the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.78% |
Market growth 2023-2027 |
USD 7,019.03 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.72 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market growth analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.