In the rapidly evolving consumer tech and automotive industries, staying abreast of market movements and opportunities is crucial. The impressive constant rise in unit shipments signifies a thriving Wireless Connectivity Chipset Market and offers substantial growth potential. Demand is mostly driven by the increasing adoption of smart home automation and growing connectivity needs in the automotive industry.
Wireless chipsets are the cornerstone of wireless communication devices and offer connectivity options like Wi-Fi, Bluetooth, or a combination of both. Due to the growing penetration of high-speed internet, mandatory in today's world, the adoption of connected devices and smart home applications is escalating particularly in areas such as Europe, North America, and the Asia Pacific. Paired with the expanding IoT landscape, this market is slated to experience increased interest from various industrial sectors.
In light of these considerable market opportunities, purchasing this market research report is a wise decision for investors and industry participants to align their business practices with market trends and gain an edge over their competitors.
- Wireless chipsets are designed for wireless communication devices and systems that enable the system or computers to connect through wireless means, such as Wi-Fi, Bluetooth, a combination of both, or WLAN.
- With the growing penetration of high-speed internet, the adoption of connected devices and smart home applications is increasing, especially in regions such as Europe, North America, and Asia Pacific. Some major solutions include voice assistants, smart thermostats, smart lighting, security cameras, and smart appliances.
- The addition of several devices, such as in IoT, increases the surface area of a network, creating more potential attack vectors in the process. Even a single unsecured device connected to a network may serve as a point of entry for an active attack on the network.
- The COVID-19 outbreak led to the cancellation of all 3rd Generation Partnership Project (3GPP) face-to-face meetings. All relevant meetings and discussions are conducted electronically, focusing on adopting collaborative tools. Furthermore, emerging use cases for 5G, including the need to support increasing numbers of individuals schooling and working from home, are expected to drive 5G investment moving forward. In addition to making people more efficient in a socially distanced world, 5G connections can be deployed. Such cases have positively driven the market studied despite the disruption caused due to shortages in the supply chain.
Wireless Connectivity Chipset Market Trends
Increasing Internet Penetration into Homes and Enterprises
- Internet penetration scaled up in the modern world. According to the International Telecommunication Union, approximately 4.9 billion people, or close to 63% of the world’s population, were dependent on the internet in 2021.
- Moreover, according to International Telecommunication Union, the Asia-Pacific region had the highest number of internet users worldwide in 2021, with China and India topping the list. These factors are driving opportunities for Wi-Fi vendors in homes and enterprises, increasing the demand for Wi-Fi chipsets.
- The evolution of the Wi-Fi network technology allowed users to experience faster speeds and lower latency. It prompted the rapidly increasing use of data-heavy services and applications. The significant rise in the volume of data being carried by Wi-Fi networks has been primarily driven by consumer demand for video and business and consumer moves to cloud services. This factor is expected to drive the need for a wireless 5G connection that offers fast and high-capacity networks.
- According to Ericsson’s Mobility Report, the monthly average usage of mobile data in North America is expected to reach 49GB per month and smartphones in 2026. A smartphone-savvy consumer base, video-rich applications, and large data plans will drive traffic growth. While there may be robust growth in traffic per smartphone in the near term, the adoption of immersive consumer 5G connections utilizing AR and VR is expected to lead to an even better growth rate in the long term.
- Lower latency is also poised to enable high-speed virtual and augmented reality video without glitches or delays. Mobile connectivity can be strengthened with small cell infrastructure, densifying 5G wireless signals and improving their movement through concrete buildings and walls. Small-cell antennas will also enhance wireless connection supporting more devices on the same network simultaneously. Such developments are expected to drive the market studied.
Asia Pacific is Expected to be the Fastest-growing Market
- The outbreak of the COVID-19 pandemic partially promoted the demand for tablets in the market. Due to the COVID-19 pandemic, various educational institutions were forced to shift toward online education. This shift in the need for more extensive and convenient screen sizes is expected to promote the demand for tablets in the market, thereby increasing the demand for wireless connectivity chipsets in the market.
- Various Indian multinational educational technology companies, such as Byju’s, provide their students with a tablet as a part of their educational curriculum to educate the students via digital methods along with the traditional methods of teaching.
- Such initiatives by the companies in the market are expected to further promote the demand for tablets, smartphones, and other consumer electronics in the market, thereby driving the wireless connectivity chipsets market for tablets in the region during the forecast period.
- The increasing demand for internet services in the Asia-Pacific region is also expected to promote the adoption of wireless connectivity chipsets in the region. As per the prime minister of India, the launch of 5G internet services in India is expected to bring new economic opportunities and societal benefits to the nation.
- Due to the increasing availability and affordability of 5G smartphones and the rapid adoption of smartphones in urban and rural areas, 5G subscriptions are expected to rapidly increase to reach approximately 50 million in the region by the end of 2023.
Wireless Connectivity Chipset Market Competitor AnalysisThe Wireless Connectivity Chipset Market is fragmented, with many players like Broadcom Inc., Qualcomm Incorporated, Mediatek Inc., Intel Corporation, and Texas Instruments Incorporated. The companies are also increasing their market presence by introducing new products, expanding their operations, or entering into strategic mergers, partnerships, and acquisitions.
- September 2022: The Ministry of Internal Affairs and Communications (MIC) of Japan amended the Ministerial ordinance of Japanese radio law to allow Wi-Fi systems to be used in the 6 GHz band. Japan joined the countries committed to delivering this latest Wi-Fi innovation. As a result, Wi-Fi 6E devices that use Qualcomm Technologies, Inc.’s Wi-Fi platforms can be certified for 6 GHz operations in Japan.
- April 2022: Broadcom Inc. announced the sample availability of its complete end-to-end chipset solutions for the Wi-Fi 7 ecosystem, spanning Wi-Fi routers, residential gateways, enterprise access points, and client devices. These Wi-Fi 7 chips more than double the speed of Wi-Fi 6 and 6E solutions on the market while simultaneously delivering reliable low-latency communications and extended range.
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Table of Contents
1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Degree of Competition
4.3 Assessment of the Impact of COVID-19 on the Industry
5.1.1 Increased Demand for Connected Homes Through Home Automation
5.1.2 Increasing Internet Penetration into Homes and Enterprises
5.2 Market Challenges
5.2.1 Issues Related to Security and Privacy of Data and Connectivity of Devices and Interoperability
5.2.2 Slow Demand for Some Mobile Handset Types
6.1.1 Wi-Fi Standalone
6.1.2 Bluetooth Standalone
6.1.3 Wifi and Bluetooth Combo
6.1.4 Low-power Wireless IC
6.2 By End-User Application
6.2.3 Mobile Handsets
6.2.6 Other End-user Applications
6.3 By Geography
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Rest of the World
7.1.1 Broadcom Inc.
7.1.2 Qualcomm Incorporated
7.1.3 Mediatek Inc.
7.1.4 Intel Corporation
7.1.5 Texas Instruments Incorporated
7.1.6 STMicroelectronics NV
7.1.7 NXP Semiconductors NV
7.1.8 On Semiconductor Corporation
7.1.9 Infineon Technologies AG
7.1.10 Microchip Technology Inc.
7.1.11 Qorvo Inc.
7.1.12 Skyworks Solutions Inc.
7.1.13 Hisilicon Technologies Co. Ltd
7.1.14 Tsinghua Unigroup Co. Ltd (unisoc (Shanghai) Technologies Co. Ltd
A selection of companies mentioned in this report includes:
- Broadcom Inc.
- Qualcomm Incorporated
- Mediatek Inc.
- Intel Corporation
- Texas Instruments Incorporated
- STMicroelectronics NV
- NXP Semiconductors NV
- On Semiconductor Corporation
- Infineon Technologies AG
- Microchip Technology Inc.
- Qorvo Inc.
- Skyworks Solutions Inc.
- Hisilicon Technologies Co. Ltd
- Tsinghua Unigroup Co. Ltd (unisoc (Shanghai) Technologies Co. Ltd