Global outlook of the connectivity enabling technology market

Technavio’s market research analysts have predicted that the global connectivity enabling technology market will grow steadily during the forecast period and will post a moderate CAGR of about 3% by 2020.Voice over mobile broadband provides end-to-end connectivity for standard mobile phone calls over mobile broadband networks such as Wi-Fi, long-term evolution (LTE), and high-speed packet access. It also offers several advantages for telecom carriers such as high-quality audio, cost reduction per subscriber, improved spectral efficiency, and user terminal power savings and has the ability to offload voice capacity to other technologies. This will lead to the adoption of VoWi-Fi. The technology has been in the industry for a long time and is expected to gain considerable traction in the telecom sector in the coming years. The technology allows users to make calls over any network without the requirement to download any other application. This will increase the demand for Wi-Fi-enabled devices and will, in turn, lead to the growth of the market.

This market research and analysis estimates that in terms of geographical regions, APAC will dominate the connectivity enabling devices market based on Bluetooth technology and the Americas will dominate the market based on ZigBee and Wi-Fi technology. North America is the largest regional market for Wi-Fi chipsets in the Americas where the US is the major revenue contributor. The growth of the market in the Americas is mainly due to the availability of established infrastructure and the high penetration of Wi-Fi-enabled smartphones and tablets. The availability of low-cost smartphones in countries such as India and China and the increasing usage of e-commerce portals will lead to the rise in sales of smartphones in APAC and will drive the growth of the market based on Bluetooth technology in the next few years.

Competitive landscape and key vendors

The market appears to be fragmented due to the presence of several vendors including OEMs and module manufacturers. New large vendors enter the market through acquisitions, while others develop their core capabilities. The market is highly competitive, and vendors mainly compete on the basis of four major factors such as price, innovation, quality, and performance. Advancements in technology will lead to the introduction of new products in the market which will further intensify the competitive environment of the market. To remain competitive and to increase or retain their market shares, vendors have to distinguish their product and service offerings through a clear and unique value proposition.

The prominent vendors in the market are -

• Atmel
• Broadcomm
• Digi International
• Freescale Semiconductor
• Fihonest Communication
• GreenPeak Technologies
• Hosiden
• IVT
• LM Technologies
• NXP Semiconductors
• Rayson Technology
• Renesas Electronics
• Samsung Electronics
• Silicon Laboratories
• STMicroelectronics
• Texas Instruments
• Qualcomm
• Marvell
• MediaTek
• Newracom

Segmentation by technology and analysis of the connectivity enabling technology market

• Bluetooth
• Wi-Fi
• ZigBee

In terms of revenue, the Wi-Fi connectivity segment dominated the industry during 2015 and accounted for more the 70% of the total market shares. Wi-Fi enables wireless connectivity to devices such as smartphones, tablets, and smart meters. OEMs are constantly focusing on lowering the cost of Wi-Fi devices and upgrading the technology to increase sales. For instance, the latest version of Wi-Fi technology follows 802.11ac standard, while 802.11ax currently in the development and testing stages will increase the wireless communication data transfer speed to more than 2Gbps. This will subsequently increase the adoption of Wi-Fi technology, in turn, driving market growth in this segment.

Segmentation by product and analysis of the connectivity enabling technology market

• Bluetooth beacons
• Bluetooth speakers
• Connected bulbs
• Connected cars
• Headsets
• PCs
• Remote controls
• Smartbands
• Smartphones
• Tablets
• STBs
• Smart glasses
• Smart meters
• Smart watches
• Smart thermostats
• WLAN devices

According to this market study, the smartphones segment will dominate the global connectivity enabling technology market throughout the predicted period and will account for more than 45% of the total shares of the market by 2020. The continuous evolution of mobile devices and the integration of new features such as Wi-Fi have resulted in the increased demand for Wi-Fi chips in smartphones. Smartphones available in the market are both Wi-Fi capable and cellular and the development of data services will accelerate the demand for Wi-Fi capability in smartphones.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global connectivity enabling technology market?
• What are the key market trends impacting the growth of the global connectivity enabling technology market?
• What are the challenges to market growth?
• Who are the key vendors in the global connectivity enabling technology market?
• What are the market opportunities and threats faced by the vendors in the global connectivity enabling technology market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global connectivity enabling technology market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Global Public Safety LTE Devices Market 2016-2020
• Global WLAN Market 2016-2020
• Global Industrial Ethernet Market 2016-2020

Connectivity-enabling technologies form the interface between devices to facilitate the transfer information. These devices can either be a transmitter or a receiver of the command given by the controlling devices. Technologies such as ZigBee, Wi-Fi, and Bluetooth form the bridge for the transmission of data from the controlling device to the device which is being controlled. 

The report, global connectivity-enabling technology market, is part of Technavio’s hardware and semiconductor research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as computing devices, displays, embedded systems, human machine interface, lighting, semiconductor equipment, and sensors. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.