According to Future Market Insights, the Wi-Fi chipset market is expected to reach USD 20.5 billion in 2023, and eventually to USD 32.6 billion in 2033. According to the report, the market is expected to proliferate at a CAGR of 4.8% from 2023 to 2033.
A growing number of smart devices are expected to be connected and managed through Wi-Fi chipsets as the Internet of Things (IoT) develops. As chips get smarter, they might prioritize IoT integration and be able to handle multiple devices at the same time.
A growing number of developing countries are becoming internet-enabled, thus increasing the demand for Wi-Fi-enabled devices. Connectivity solutions made possible by Wi-Fi can be deployed easily and cost-effectively to bridge the digital divide.
Smartphone adoption and internet penetration are increasing in developing regions, creating opportunities for Wi-Fi chipsets. With Wi-Fi 6E gaining momentum, chipset manufacturers had the opportunity to develop cutting-edge solutions that benefited from the new spectrum.
Providing robust security features to protect connected devices and data is a way for chipset manufacturers to differentiate themselves. In recent years, Wi-Fi chipsets have shifted from low-speed to high-speed, supporting bandwidth-intensive applications like streaming in 4K/8K, virtual reality, and augmented reality. Advances in Wi-Fi technology may lead to faster speeds in the future.
| Report Attribute | Details |
|---|---|
| Wi-Fi Chipset Market Size (2022) | USD 20 billion |
| Wi-Fi Chipset Market Share Value (2023) | USD 20.5 billion |
| Wi-Fi Chipset Market Anticipated Forecast Value (2033) | USD 32.6 billion |
| Wi-Fi Chipset Market Projected Growth Rate (2023 to 2033) | 4.8% CAGR |
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According to FMI, the global Wi-Fi chipset market expanded at a 2.4% CAGR from 2018 to 2022. Growing new Wi-Fi chipsets are being developed to be compatible with older standards to ensure seamless integration with existing network infrastructures. As chipsets continue to evolve, backward compatibility will be maintained while new features will be introduced.
The industry standards governing Wi-Fi chipsets ensure their interoperability with other devices from different manufacturers. As a result of this standardization, devices, networks, and environments are compatible and seamlessly integrated.
Due to technological advances, economies of scale, and competitors in the market, Wi-Fi chipsets are becoming increasingly affordable. Consumer electronics have benefited from their affordability by integrating them into a wide range of products.
New Wi-Fi standards, including Wi-Fi 6 (802.11ax) and Wi-Fi 6E, have been introduced and are offering higher data rates, better performance, lower latency, and improved efficiency. Manufacturers of chipsets can take advantage of these advancements by developing and selling upgraded products.
With the introduction of Wi-Fi 6E, the available frequency spectrum for Wi-Fi has expanded. Chipsets may explore higher frequency bands in the future to reduce interference and provide more bandwidth. Between 2023 and 2033, the market for Wi-Fi chipsets is predicted to incline at a 4.8% CAGR.
Growing Internet Demand and Growth of 5G Networks are Driving the Market
With the growth in the Internet of Things (IoT) market, chip makers have seen a surge in demand for Wi-Fi chips, which are crucial for connecting and communicating with IoT devices in smart homes, smart cities, and industrial automation. An increasingly seamless user experience is being created using Wi-Fi and 5G technologies.
Devices can switch between Wi-Fi and cellular networks depending on availability and performance through Wi-Fi offloading. The demand for Wi-Fi chipsets to power IoT, smart homes, and wearable technology increased with the rise of these technologies.
More devices were being connected and faster data speeds were being supported by businesses' network infrastructures. Wi-Fi solutions with enterprise-grade capabilities are available to chipset manufacturers during this upgrade cycle.
Wi-Fi connectivity is being explored by the automotive industry as a means to provide passengers with internet access and enable vehicle-to-vehicle communication. The security features on chipsets have been improved to protect users and devices from vulnerabilities in Wi-Fi networks.
Future Wi-Fi chipsets may include sophisticated encryption and authentication mechanisms. Power efficiency is becoming increasingly important as the number of Wi-Fi-enabled devices increases. Typical future Wi-Fi chipsets will emphasize reducing power consumption, allowing portable devices to last longer and saving energy overall.
As Wi-Fi chipsets work to extend their ranges and areas of coverage, dead spots are being addressed, and seamless connectivity is being achieved throughout homes, offices, and public spaces.
Beamforming and MIMO (Multiple-Input, Multiple-Output) technologies have contributed significantly to the achievement of this goal. With the development of smart homes and smartphones, the market for Wi-Fi chipsets is growing rapidly.
Wi-Fi chipset demand is expected to increase due to the increasing popularity of smart wearables and smart home appliances. It is expected that wireless chipsets with artificial intelligence capabilities will become more prevalent in the future, providing users with a better experience and enabling them to make better decisions.
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Regulations and Constant Innovations is Limiting the Growth of the Market
Chipsets must constantly innovate and improve to remain competitive with current technologies, which could be a limiting factor. Among the downsides of Wi-Fi technology is the ability to achieve a wide range of signals and the interference it may encounter, potentially limiting its use in the market.
Wireless networks are susceptible to data breaches and cyber-attacks, thus limiting the growth of Wi-Fi chipsets. In certain applications, Wi-Fi chipsets may be restricted in their growth due to competition from other wireless technologies, such as 5G cellular networks.
Regulatory and security issues related to Wi-Fi technology are expected to limit the market's growth. Moreover, because of the use of the 5 GHz band in LTE-U, Wi-Fi chipset manufacturers have to contend with increased coexistence issues with LTE. All these factors will limit the growth of the market.
Emerging Smart Home Technologies and Demand for Wireless Communications to Grow Demand for Wi-Fi Chipset in the Market
Substantial growth in the Wi-Fi chipset market is predicted between 2023 and 2033 in the United States. Wi-Fi chipset sales in the United States are expected to reach USD 5.2 billion by 2033. Smart home automation technologies are driving exponential growth in connected home device sales.
With its rapid adoption of new technologies and complex technical infrastructure, the United States holds the largest market share. A pioneer in wireless communication, it introduced the technology of Wi-Fi and has been at the forefront of wireless communication developments.
Businesses in the United States enjoy a competitive advantage because of their technological leadership. According to a Consumer Device Association report released in January 2017, 72% of Americans will have at least one device connected to their home appliances.
The growing use of wireless chipsets and high-tech smart devices will encourage further investment in wireless chipsets. The trend toward industrial automation is also driving Wi-Fi chipset sales in the country. Technology companies and other industries continue to rely on wireless technology in the country to provide reliable and stable internet access for commercial and residential premises.
Increasing Sales of Smartphones and IoT Products will Grow Demand for Wi-Fi Chipset Market
According to industry analysts, China will have the fastest growth in Wi-Fi chipset market. A forecast indicates that market revenues will reach USD 8.2 billion by 2033. Due to the widespread presence of Wi-Fi chipset manufacturers, Wi-Fi chipsets play an integral part in most finished products.
Multiple factors have contributed to the rise in demand for Wi-Fi chipsets in China, such as the proliferation of tablets, smartphones, laptops, and smart home devices, and the increasing implementation of the Internet of Things (IoT).
According to IEEE standards, China is expected to produce the most Wi-Fi chipsets by 2023. Several major firms, including MediaTek, Qualcomm, Broadcom, and Realtek, have been major players in the global Wi-Fi chipset market.
Additionally, Wi-Fi chipset demand in China is influenced by growing e-commerce, internet services, and online entertainment platforms, making fast and reliable internet connections a crucial aspect of the Chinese economy.
Hotspot deployments by government agencies in developing nations like China are also projected to fuel growth during the forecast period. This resulted in China capturing the majority of the Wi-Fi chipset market. Between 2023 and 2033, the Wi-Fi chipset market in China is predicted to expand at a 6.2% CAGR.
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Growing Enterprise and Home Networking Demand to encourage Sales
IEEE 802.11ax - Wi-Fi 6 & Wi-Fi 6E are expected to dominate the market during the forecast period. The IEEE 802.11ax - Wi-Fi 6 & Wi-Fi 6E market is expected to grow at a CAGR of 4.4% from 2023 to 2033.
The latest Wi-Fi standard at the time was Wi-Fi 6 (802.11ax), and it had improved performance, capacity, and efficiency as it compared with its predecessor, Wi-Fi 5 (802.11ac), which had an older standard at the time. Due to the 6 GHz frequency band, Wi-Fi 6E offers more channels in dense environments, reducing interference.
Video streaming, online gaming, and virtual reality, along with the growing popularity of connected devices and data-intensive applications, were straining Wi-Fi networks. As a result of Wi-Fi 6 and 6E, these demands could be met with the necessary performance improvements.
Wi-Fi 6 and 6E were causing businesses and consumers alike to upgrade their networking equipment. Among the businesses most eager to adopt Wi-Fi 6 and 6E to improve their network performance were offices, schools, and public venues.
The companies that manufacture smartphones and laptops are integrating Wi-Fi 6 and 6E capabilities into their products, making this technology more accessible to the general public. With the launch of more devices that support Wi-Fi 6 and 6E, this trend is expected to grow.
Increased Popularity of Wi-Fi Routers is expected to Drive Market Growth for MU-MIMO
FMI projects Wi-Fi chipsets for MU-MIMO to rise at a 4% CAGR between 2023 and 2033. Consumer electronics markets were growing steadily in demand for MU-MIMO chipsets. With this technology, manufacturers were able to offer faster and more reliable wireless connectivity to multiple users simultaneously through smartphones, laptops, and tablets equipped with Wi-Fi.
Many factors will affect the actual demand for MU-MIMO chipsets, including the popularity of wireless networking devices with MU-MIMO capabilities, and the overall growth of the wireless networking market.
In the years since my last update, consumption of MU-MIMO chipsets is probably greater than it was, especially since Wi-Fi 6 (802.11ax) and Wi-Fi 6E (802.11ax on 6 GHz) are widely used, both utilizing MU-MIMO.
Business trends continue to be influenced by markets and technological advancements based on conditions and advancements. Around the world, there are an increasing number of startups that are developing wireless chipsets. The market for Wi-Fi chipsets has been revolutionized by startups including the following:
Several leading players in the Wi-Fi chipset market are investing in innovations, research, and development. In addition to reducing manufacturing costs and increasing customer satisfaction, technology is also being used by players to decrease manufacturing costs. For instance,
| Attribute | Details |
|---|---|
| Expected Value in 2023 | USD 20.5 billion |
| Projected Value in 2033 | USD 32.6 billion |
| Growth Rate from 2023 to 2033 | 4.8% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for value & CAGR from 2023 to 2033 |
| Key Regions Covered |
North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Covered |
United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Kay Segments Covered |
Standard, Band, MIMO Configuration, Application, Region |
| Key Companies Profiles |
Broadcom; Celeno Communications; Infineon Technologies; Espressif Systems Shanghai Co Ltd; GCT Semiconductor Inc.; I&C Technology; Intel Corporation; MediaTek, Inc.; Microchip Technology Inc.; MORSE MICRO; Newracom; NXP Semiconductors; ON Semiconductors; PERASO TECHNOLOGIES INC.; Qualcomm Technologies, Inc.; Realtek Semiconductor Corp.; Renesas Electronics Corporation; Samsung Electronics Co., Ltd.; Silicon Laboratories; STMicroelectronics N.V. |
| Customization & Pricing | Available upon Request |
The market is estimated to achieve USD 32.6 billion by 2033.
The market is forecast to register a CAGR of 4.8% through 2033.
From 2018 to 2021, the global market exhibited 2.4% HCAGR.
In the United States, Wi-Fi chipset sales are estimated to crest USD 5.2 billion by 2033.
The market in China to advance at a 6.2% CAGR.
Through 2033, the IEEE 802.11ax - Wi-Fi 6 & Wi-Fi 6E market is predicted to develop at a CAGR of 4.4%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Standard 5.1. IEEE 802.11ay 5.2. IEEE 802.11ad 5.3. IEEE 802.11ax - Wi-Fi 6 & Wi-Fi 6E 5.4. IEEE 802.11ac 5.5. IEEE 802.11n - SB and DB 5.6. IEEE 802.11b/G 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Band 6.1. Single 6.2. Dual 6.3. Triband 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By MIMO Configuration 7.1. SU-MIMO 7.2. MU-MIMO 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Smartphones 8.2. Tablets 8.3. Desktop PCs 8.4. Laptops 8.5. Connected Home Devices 8.6. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Broadcom 17.2. Celeno Communications 17.3. Infineon Technologies 17.4. Espressif Systems Shanghai Co Ltd 17.5. GCT Semiconductor Inc 17.6. I&C Technology 17.7. Intel Corporation 17.8. MediaTek, Inc. 17.9. Microchip Technology Inc. 17.10. MORSE MICRO 17.11. Newracom 17.12. NXP Semiconductors 17.13. ON Semiconductors 17.14. PERASO TECHNOLOGIES INC. 17.15. Qualcomm Technologies, Inc. 17.16. Realtek Semiconductor Corp. 17.17. Renesas Electronics Corporation 17.18. Samsung Electronics Co., Ltd. 17.19. Silicon Laboratories 17.20. STMicroelectronics N.V. 18. Assumptions & Acronyms Used 19. Research Methodology
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Wi-Fi Chipset Market
