Wi-Fi Chipset Global Market Report 2024

The wi-fi chipset market size has grown strongly in recent years. It will grow from $22.12 billion in 2023 to $23.57 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The growth observed in the historic period can be attributed to various factors, including the proliferation of wireless devices, advancements in technology standards, the rise of wireless networking, and the growth of smart home and Internet of Things (IoT) applications. These factors collectively contributed to the historical expansion of Wi-Fi chipsets.

The wi-fi chipset market size is expected to see strong growth in the next few years. It will grow to $29.41 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The anticipated growth in the forecast period can be attributed to several factors, including the adoption of Wi-Fi 6 and Wi-Fi 6E, integration with 5G and coexistence, the expansion of Internet of Things (IoT) and Industry 4.0 applications, the prevalence of remote work and distance learning, and the development of smart cities and public Wi-Fi infrastructure. Key trends in the forecast period are expected to include 5G offloading and integration, enhanced beamforming and Multiple Input Multiple Output (MIMO) technologies, the development of the Wi-Fi 7 standard, artificial intelligence-driven network optimization, and an increased focus on security measures.

The Wi-Fi chipset market is poised for growth, propelled by the increased adoption of smartphones. Smartphones, portable electronic devices connecting to cellular networks, rely on Wi-Fi chipsets to enable wireless connectivity, facilitating functions such as internet access, faster data transfer, local area networking, and data offloading. A notable statistic from February 2023, reported by Uswitch Limited, reveals a 3.8% increase in smartphones in the UK in 2022, reaching 71.8 million, and a projected 95% smartphone penetration among the UK's 68.3 million population by 2025. This surge in smartphone adoption is a key factor driving the growth of the Wi-Fi chipset market.

The growing demand for 5G connectivity is anticipated to further fuel the expansion of the Wi-Fi chipset market. 5G connectivity, representing the fifth generation of mobile network technology, relies on Wi-Fi chipsets to provide seamless indoor connectivity, data traffic offloading, and high-speed, low-latency connectivity. The GSM Association reported in March 2022 that 5G connections were expected to surpass 1 billion in 2021, doubling to 2 billion by 2025. With over 40% of the global population expected to have access to a 5G network by the end of 2025, the rising demand for 5G connectivity emerges as a significant driver for the Wi-Fi chipset market.

Technological advancements in chipsets emerge as a key trend in the Wi-Fi chipset market. Major companies in the sector, such as MediaTek Inc., are actively developing innovative products to maintain their competitive edge. MediaTek's launch of the Filogic 880 and Filogic 380 Wi-Fi 7 chipsets in May 2022 showcases cutting-edge technology designed for high-bandwidth applications in various markets. The Filogic 880 supports up to 36 Gbps of aggregate throughput, twice as fast as Wi-Fi 6, while the Filogic 380 is tailored for client devices, supporting up to 9.6 Gbps of aggregate throughput. These chipsets, featuring 6nm process technology and supporting crucial Wi-Fi 7 technologies, exemplify the commitment to faster speeds, enhanced performance, and reliable connections.

Major companies in the Wi-Fi chipset market are also driving innovation through the development of dual-band Wi-Fi chips to cater to broader customer bases. Nordic Semiconductor ASA's nRF7002, launched in August 2022, is an ultra-low-power, dual-band Wi-Fi 6 companion chip with innovative WiFi-based location capabilities. The nRF7002's versatility extends compatibility beyond Nordic host devices, demonstrating its potential within the Internet of Things (IoT) ecosystem. This focus on dual-band Wi-Fi chip innovation aligns with the goal of meeting diverse customer needs and expanding market reach.

In December 2021, Renesas Electronics Corporation's acquisition of Celeno Communications Ltd. for $315 million underscores the strategic moves of major companies to bolster their connectivity portfolios and reinforce positions in the growing Wi-Fi and wireless technologies market. Celeno Communications Ltd., an Israel-based manufacturer of wireless network technology and Wi-Fi chipsets, further enriches Renesas Electronics Corporation's capabilities in the Internet of Things (IoT) sector.

Major companies operating in the wi-fi chipset market report are Dell Technologies Inc., Intel Corporation, Cisco Systems Inc., Qualcomm Technologies Inc., Broadcom Inc., Hewlett Packard Enterprise Company, Texas Instruments Incorporated, MediaTek Inc., ASUS, STMicroelectronics NV, Infineon Technologies AG, NXP Semiconductors NV, CommScope Holding Co., On Semiconductor Co Inc., Microchip Technology Inc., Skyworks Solutions Inc., Realtek Semiconductor Corp., Quectel Wireless Solutions Co. Ltd., Extreme Networks Inc., Netgear Inc., Fibocom Wireless Inc., D-Link Systems Inc., Espressif Systems, Montage Technology Co. Ltd., Kxcomtech, Celeno Communications Ltd.

North America was the largest region in the Wi-Fi chipset market in 2023. Asia-Pacific is expected to be the fastest-growing region in the Wi-Fi chipset market report during the forecast period. The regions covered in the wi-fi chipset market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wi-fi chipset market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Wi-Fi chipset products come in various types, including smartphones, tablets, personal communication services (PCS), access points, and others. Smartphones are mobile devices that combine the functionality of a mobile phone with advanced computing capabilities. They can be single-band, dual-band, or tri-band, and utilize Single User Multiple Input Multiple Output (SU-MIMO) and Multi-User Multiple Input Multiple Output (MU-MIMO) configurations. These chipsets employ technologies such as Wi-Fi 802.11a, Wi-Fi 802.11b, Wi-Fi 802.11g, and Wi-Fi 802.11n. Wi-Fi chipsets find applications across various sectors, including residential, enterprise, education, government and public utilities, and others.

The Wi-Fi chipset market research report is one of a series of new reports that provides Wi-Fi chipset market statistics, including Wi-Fi chipset industry global market size, regional shares, competitors with a Wi-Fi chipset market share, detailed Wi-Fi chipset market segments, market trends and opportunities, and any further data you may need to thrive in the Wi-Fi chipset industry. This Wi-Fi chipset market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The Wi-Fi chipset market consists of revenues earned by entities by providing wireless networking, signal transmission and reception, data encoding and decoding, and protocol support services. The market value includes the value of related goods sold by the service provider or included within the service offering. The Wi-Fi chipset market also includes sales of routers and access points, smart home devices, IoT (Internet of Things) devices, wearable devices, automotive chipsets, baseband processors, and antennas, which are used in providing Wi-Fi chipset services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.