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The wireless chipset market size is forecast to increase by USD 14 billion at a CAGR of 3.51% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for wireless connectivity in various sectors. With the rise in popularity of high-tech smart devices, such as PCs and consumer electronics, the need for advanced Wi-Fi chipset technology has become crucial. The IT sector's adoption of WLAN infrastructure for industrial automation and open-source software development is also driving market growth. Furthermore, 5G deployment initiatives are expected to boost the market, particularly in the areas of public hotspots, healthcare, retail, and other industries. However, the high capital investment required for Wi-Fi chipset manufacturing remains a challenge for market growth.
The wireless chipsets market is witnessing significant growth due to the increasing demand for high-speed internet and connected devices across various sectors, including residential, industrial, and commercial. These chipsets play a crucial role in enabling seamless communication between devices and networks, ensuring dependable performance, high security, and increased output. In the residential sector, wireless chipsets are essential components in delivering convenient living experiences through smart home applications. These applications include voice assistants, smart thermostats, smart lighting, security cameras, and smart appliances. Faster processing and high bandwidth capabilities of these chipsets enable real-time data transfer and improved coverage, ensuring uninterrupted connectivity and enhanced user experience.
Furthermore, the industrial sector relies heavily on wireless chipsets for automation and increased productivity. These chipsets facilitate real-time data transfer and communication between machines and networks, allowing for efficient manufacturing processes and remote monitoring capabilities. The adaptability and dependability of wireless chipsets make them an ideal solution for industrial applications, ensuring high-speed internet connectivity and reliable data transfer. The commercial sector also benefits significantly from wireless chipsets, particularly in the deployment of public Wi-Fi hotspots. These hotspots provide high-speed internet access to customers and employees, enhancing productivity and convenience. Wireless chipsets enable faster processing and higher bandwidth capabilities, ensuring seamless connectivity and improved user experience.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The computers and laptops segment is estimated to witness significant growth during the forecast period. Wireless chipsets are essential components in enabling wireless connectivity for computers and laptops. Among the various applications, Wi-Fi connectivity is a prominent one. Modern computers and laptops are equipped with built-in Wi-Fi chipsets, allowing users to connect to wireless networks and access the Internet without the need for cables. This feature has gained significance as remote work becomes more prevalent, and wireless connectivity becomes a necessity for daily tasks. Another application of wireless chipsets is Bluetooth connectivity. These chipsets enable wireless connections between computers or laptops and Bluetooth-enabled devices, such as speakers, headphones, keyboards, and mice. This feature offers convenience and flexibility to users.
Moreover, wireless chipsets are also used in mobile networks, such as LTE and LTE-U, which operate in the 5 GHz band. These technologies offer high bandwidth and coverage, making them ideal for use in Wi-Fi hotspot solutions. Communication service providers and network operators have increasingly adopted these technologies to offer seamless connectivity in public places, such as coffee shops, airports, hotels, buses, and trains. The increasing number of connected devices and the need for faster and more reliable wireless connectivity are driving the growth of the market.
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The computers and laptops segment was valued at USD 21.03 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia Pacific (APAC) region is experiencing significant growth due to the investments made by prominent semiconductor foundries, including Taiwan Semiconductor Manufacturing, United Microelectronics, Samsung, and Semiconductor Manufacturing International. These companies are expanding their operations in the region by building new fabrication plants (fabs). For instance, Qualcomm Technologies, LG Uplus, and LG Electronics collaborated to deploy South Korea's first 5G mmWave network using a commercial 5G smartphone at Kumoh National Institute of Technology (KIT) in December 2020. Similarly, Samsung Electronics Co. Announced plans to invest USD 116 billion to build a state-of-the-art chip production line and compete with industry leaders TSMC and Intel in May 2020.
Furthermore, the increasing adoption of Wi-Fi network technology in data-heavy services, cloud services, video-rich applications, and large data plans is fueling the demand for wireless connectivity chipsets. The proliferation of AR and VR technology, 5G internet services, and economic opportunities in urban and rural areas are also contributing to the growth of the market. Wi-Fi companies are continually innovating to meet the evolving needs of consumers and businesses, leading to the development of small cell infrastructure to enhance wireless connectivity. In the US and North America, the trend is similar, with leading semiconductor companies investing in the development and production of 5G chipsets for 5G smartphones and other devices.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in demand for smartphones is the key driver of the market. The demand for wireless chipsets, a vital component of smartphones and other wireless devices, is anticipated to rise in various sectors including residential, industrial, and commercial, due to the increasing adoption of automation and productivity-enhancing technologies. In the residential sector, the trend towards convenient living and smart buildings is driving the need for high-performance wireless chipsets that support real-time surveillance technologies and ensure dependability and high security.
Furthermore, in the industrial sector, the implementation of industrial Wi-Fi for automation and faster processing is leading to increased output and improved efficiency. In the commercial sector, the requirement for adaptability and faster processing in Wi-Fi chipsets is essential for powering smart offices and other smart city infrastructure. With the proliferation of Wi-Fi technology and the growing concern for criminal activity, the Wi-Fi Chipset Market is poised for substantial expansion during the forecast period.
Increasing adoption of 5G technology is the upcoming trend in the market. The market is poised for substantial expansion due to the increasing implementation of 5G technology. This technological advancement signifies a major leap in wireless connectivity, providing faster speeds, reduced latency, and enhanced network capacity compared to previous generations. The growing demand for 5G-compatible chipsets to power various devices, including PCs, high-tech smart devices, and access point equipment, is fueling market growth.
Additionally, 5G's integral role in the Internet of Things (IoT) ecosystem is driving the need for efficient wireless chipsets to facilitate seamless communication and data transfer between IoT devices. Applications such as industrial automation, healthcare, retail, and public Wi-Fi hotspots are all set to benefit from this technological evolution. Key sectors like consumer electronics and the IT industry are also expected to experience significant growth due to the integration of advanced wireless chipset technology. Open-source software and Wi-Fi chipset manufacturing companies play a vital role in the market's growth, ensuring the availability of cutting-edge technology for diverse applications.
The need for high capital investment is a key challenge affecting market growth. Investing in the research and development (R&D), testing, and fabrication of high-performance wireless chipsets is a substantial undertaking for manufacturers. The costs associated with this process can act as a significant barrier to entry for new market participants and hinder the expansion of existing companies. The advancement of technology necessitates continuous innovation in wireless chipsets to meet the latest standards and specifications. New technologies, such as 5G and Wi-Fi 6, demand even more substantial investments to create chipsets capable of delivering the required performance, efficiency, and compatibility. Broadcom is a leading player in this market, offering solutions that cater to multiple users, constant bandwidth capacity, and low latency.
Furthermore, the Wi-Fi 7 ecosystem, built on 320 MHz and fabrication technology like silicon-on-insulator (SOI), is a testament to Broadcom's commitment to delivering dependable communication, increased range, and a superior TCP/IP stack. Consumer electronics manufacturers, including those producing tablets, wearable tech, and commercial and residential applications, rely on these advanced chipsets to meet the evolving demands of their customers.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accton Technology Corp: The company offers the AR9580 Wi-Fi 5 module, the AR9535 Wi-Fi 4 module, and the AR9331 Wi-Fi 3 module
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Wireless chipsets play a crucial role in enabling high-performance network connectivity in various sectors, including residential, industrial, and commercial. In the residential sector, wireless chipsets facilitate convenient living by enabling smart buildings and home automation. In the industrial sector, these chipsets ensure increased productivity and dependability in automation processes. The commercial sector benefits from wireless chipsets through faster processing, low latency, and constant bandwidth capacity, making wi-fi an essential component of high-tech smart devices and public hotspots. Wi-fi chipsets are integral to the WLAN infrastructure in consumer electronics such as tablets, wearable tech, and PCs. The industrial sector uses industrial wi-fi for high-performance network connectivity in 5G deployment initiatives and various commercial applications.
Furthermore, the IT sector relies on wireless technology for communication and collaboration tools, while the consumer electronics industry continues to innovate with mu-mimo wi-fi chipsets for 4k TVs, gaming consoles, and smart home applications. Wi-fi chipsets are essential for real-time surveillance technologies and criminal activity prevention in various sectors. Wi-fi technologies, including LTE, LTE-U, and 5 GHz band, enable connected devices to transfer large data volumes with ease. Public wi-fi hotspots in coffee shops, airports, hotels, buses, trains, sports stadiums, retail stores, and commercial complexes offer high-speed internet access to digital consumers. Wi-fi chipsets are manufactured using advanced fabrication technologies like silicon-on-insulator (SOI) and 320 MHz.
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Market Scope |
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Report Coverage |
Details |
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Page number |
202 |
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Base year |
2023 |
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Historic period |
2017-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.51% |
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Market Growth 2024-2028 |
USD 14 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.34 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 46% |
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Key countries |
US, China, South Korea, Canada, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accton Technology Corp., ALE International, ASUSTeK Computer Inc., Broadcom Inc., Cisco Systems Inc., EDIMAX Technology Co. Ltd., Huawei Technologies Co. Ltd., Infineon Technologies AG, Intel Corp., Juniper Networks Inc., MediaTek Inc., Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp., Qualcomm Inc., Samsung Electronics Co. Ltd., Skyworks Solutions Inc., Sony Group Corp., STMicroelectronics International N.V., and Texas Instruments Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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