According to a recent study from market research firm Global Market Insights, the Wi-Fi chipset market size exceeded $15 billion (US) in 2019 and is estimated to grow at a CAGR of 3% between 2020 and 2026. The global shipments will reach around 4 billion units annually by 2026.
Rising penetration of IoT devices is likely to boost the market growth. A Wi-Fi chipset offers high-speed wireless connectivity, network security, and reduced latency, which will increase its integration into IoT devices across various industries. Enhanced productivity of industries connected over IoT and Wi-Fi networks will further drive the market demand.
The report says the burgeoning adoption of Wi-Fi chipsets in in-vehicle systems (IVS) is a key factor expected to accelerate the Wi-Fi chipset market growth over the forecast period. In recent years, automakers worldwide are rolling out next-generation vehicles equipped with IVI systems to provide automobile passengers with both entertainment and information.
For instance, passengers can connect the automobile displays with a smartphone to enable communications, music entertainment, and listening to the news, traffic reports, and many others. The advent of such systems has increased the demand for integrated wireless communication systems in vehicles, which in turn will accelerate the demand for Wi-Fi chipsets over the forecast period.
The Wi-Fi chipset market is expected to garner significant revenues from the smartphone application segment over the forecast period. The smartphone segment has undergone a major revolution in terms of performance, portability, and connectivity with the increasing deployment of 5G technology. In fact, as per the GSMA report, in March 2020, China has developed 160,000 5G base stations across 50 cities to strengthen 5G infrastructure in the nation. This has encouraged smartphone manufacturers to develop 5G compatible models, which in turn will accelerate the demand for Wi-FI chipsets over the forecast timeframe.
On the regional front, Europe is anticipated to offer lucrative growth opportunities to the Wi-Fi chipset market on account of the expanding semiconductor industry. Numerous nations in the region are taking proactive steps to accelerate regional semiconductor industries. Citing an instance to highlight the same, in December 2018, the EU (European Union) announced a joint project with France, the UK, and Germany to conduct research and development initiatives in the field of microelectronics and semiconductor.
The agency has sanctioned around US $2.06 billion in funding for research activities and an extra USD 7.05 billion in funds to attract the global electronics manufacturers in the region. Aided by government initiatives like the aforementioned, the Europe market is anticipated to record a 2% CAGR through the forecast time period.
While speaking about the competitive landscape, it is imperative to mention that the Wi-Fi chipset market has a strong presence of leading technology giants, says the research firm. These companies are undertaking numerous inorganic and organic growth strategies such as acquisitions, collaborations, product innovations to tap major market share.
Global Market Insights | www.gminsights.com