Owing to benefits such as portability, cost-effectiveness, and ease of use, Wi-Fi chipset technology is rapidly gaining momentum. The market is expected to witness a significant rate of growth over the forecast period, that is, 2021–2031. It has been experiencing a greater adoption as compared to its other alternatives that operate in the market.
The need for advanced Wi-Fi chipsets has been increasing as people are opting for connected devices with high data transfer speeds. The market is expected to be driven by the need for better network connectivity in various applications such as gaming, streaming, and other activities that require seamless and fast internet access.
Rapid end-use applications such as computers (notebook and desktop PC), smartphones, smart home devices, and other consumer electronics have been driving the growth of the market. The growing demand for high-speed internet connectivity in such consumer electronics applications has been responsible for the increased growth of the market.
Advantages such as the growing popularity of Wi-Fi, the introduction of advanced technologies such as mesh networking, and the growing demand for better network connectivity in various applications are expected to create attractive opportunities for the growth of this market.
Considering these factors, it is reasonable to say that the global Wi-Fi chipsets market is growing at an appreciable compound annual growth rate (CAGR) of 8%. It is expected that the market might acquire a size of USD 27 billion during the period of forecast, that is, 2021-31.
Wi-Fi chipsets are the components that are used to enable Wi-Fi capabilities in a device or computer. They contain the necessary circuitry to enable a connection to a local area network over radio frequencies and help process the data being transferred. Wi-Fi chipsets may also include antennas, receivers, and transmitters depending on their use. Wi-Fi chipsets are used in a variety of products and devices, including phones, tablets, laptops, desktops, printers, cameras, routers, and more. They are usually integrated into the device’s mainboard or system on a chip (SoC).
A significant rise in the number of smart homes is fuelling the demand for Wi-Fi chipsets. Furthermore, an increasing number of smart cities are emerging across various countries which are further propelling the growth of this market. The rising trend of 5G usage has created a need for advanced Wi-Fi chipsets that can support high-speed network connectivity and data transfer.
Furthermore, the increasing need for enhanced network capabilities with high data transfer speeds has been further fueling the growth of this market. The market consistently undergoes a series of developments in order to provide better services.
However, a number of limitations such as the availability of spectrum, the increased cost of implementation, and the use of multiple access points may hamper the growth of this market. Additionally, security concerns related to Wi-Fi chipsets are also expected to obstruct the growth of this market. This might hamper the growth of the market during the study period. Despite these obstacles, the market for Wi-Fi chipsets is projected to increase steadily over the course of the forecast period.
The key players in the global Wi-Fi chipsets market are Qualcomm Technologies Inc., Intel Corporation, Broadcom Inc., MediaTek Inc., Texas Instruments, Marvell Technology Group Ltd., STMicroelectronics N.V., Cavium Inc., Quantenna Communications and Renesas Electronics Corporation. These players compete with each other in the market and each of them aims to earn higher profits and acquire a position above that of their competitors in the market.
802.11ac WIFI Chipsets to Remain the Most Lucrative Segment
The market is segmented based on type, application, and region. Based on type, the Wi-Fi chipset market is classified into 802.11n WIFI Chipsets, 802.11ac WIFI Chipsets, 802.11ad WIFI Chipsets, and Others. Among these, 802.11ac WIFI Chipsets accounted for the largest market share in 2021, followed by 802.11n WIFI Chipsets.
The Computer (Notebook and Desktop PC) Segment to Ensure Maximum Revenue
The Wi-Fi chipset market is divided into computers (notebooks and desktop PCs), smart home appliances, mobile phones, and other devices based on application. Due to the rising need for internet connectivity in these devices, the computer (notebook and desktop PC) sector is anticipated to have a large proportion of the Wi-Fi chipset market throughout the forecast period.
North America is Expected to Render Ample Investment Avenues
Regionally, the global Wi-Fi chipset market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to dominate the Wi-Fi chipset market owing to the presence of established players in this region along with the high adoption of Wi-Fi-enabled consumer electronics products such as laptops, tablets, and smartphones.
Covid-19 Impact and Market Status
The pandemic has resulted in the closure of many businesses and industries, which has directly impacted the sales of Wi-Fi chipsets. In addition, the lockdown imposed by various governments across the globe has led to a decrease in the production of Wi-Fi chipsets. Moreover, the ongoing trade tensions between the U.S. and China are expected to hamper the growth of the global Wi-Fi chipsets market during the forecast period. Despite the adverse effects of the pandemic on the global Wi-Fi chipsets market, the market is expected to revive soon with the gradual reopening of businesses and industries. The shift in consumer preference towards remote working, online education, and connected entertainment is also likely to create lucrative opportunities for the global Wi-Fi chipsets market during the forecast period. Gradually, the market is rising as a whole and is expected to gain a good rate of growth during the study period.
Latest Innovations in the Global Wi-Fi Chipsets Market: a Snapshot
• In 2020, Qualcomm Technologies Inc. launched Wi-Fi 6E chipsets for smartphones, The launch of the new chipsets is a part of the company’s strategy to expand its product portfolio and provide advanced Wi-Fi solutions to device makers.
• Similarly, in 2019, Broadcom Inc. acquired Symantec Corporation’s enterprise security business for US$ 10.7 billion. This acquisition is expected to help the company strengthen its position in the global Wi-Fi chipsets market by providing more advanced security solutions for end users.
• Additionally, MediaTek Inc. announced its Helio M70 modem for 5G networks in 2020. The new modem is expected to offer superior performance and energy efficiency compared to the previous generations
• Moreover, major companies have started investing in the development of 5G Wi-Fi chipsets. For instance, Qualcomm Technologies Inc. has launched an integrated 5G Wi-Fi chipset called the Snapdragon X55 5G RF system. This chipset is expected to provide a better and faster connection for devices from smartphones to PCs and help enable a wide range of new applications such as augmented reality and virtual reality.
Wi-Fi Chipsets Market Scope
|Revenue forecast in 2031
|USD 27 billion
|CAGR of 8 % during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, Middle East and Africa, South America
|Key Players Profiled
|Qualcomm Technologies Inc., Intel Corporation, Broadcom Inc., MediaTek Inc., Texas Instruments, Marvell Technology Group Ltd., STMicroelectronics N.V., Cavium Inc., Quantenna Communications and Renesas Electronics Corporation.
Key Segments of the Wi-Fi Chipsets Market
By Type Overview, 2021-2031 (USD Billion)
• 802.11n WIFI Chipsets
• 802.11ac WIFI Chipsets
• 802.11ad WIFI Chipsets
By Application Overview, 2021-2031 (USD Billion)
• Notebook and Desktop PC
• Smart Home Devices
• Mobile Phone
By Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and Africa