Global Wi-Fi Chipset Market By MIMO Configuration (SU-MIMO, MU-MIMO), By Band (Single, Dual, Tri-band), By Protocol Type (802.11ac, 802.11n, 802.11ax, 802.11b, Others), By Application (Consumer devices, Smart home devices, Gaming devices, Drones, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Wi-Fi Chipset Market size is expected to be worth around USD 33.5 Billion By 2033, from USD 20.4 Billion in 2023, growing at a CAGR of 5.1% during the forecast period from 2024 to 2033.

A Wi-Fi chipset is a crucial component in devices that connect to wireless networks, such as smartphones, laptops, and routers. It is the hardware responsible for managing wireless communication between these devices and the internet or other networks. Wi-Fi chipsets enable users to access the internet, stream videos, play online games, and communicate wirelessly.

The Wi-Fi chipset market is a significant segment of the technology industry, growing rapidly due to the increasing demand for wireless devices and improved internet connectivity worldwide. Key factors driving this market include the widespread adoption of smart devices, the expansion of home and industrial automation, and the ongoing upgrades to more advanced Wi-Fi standards, like Wi-Fi 6, which offers faster speeds and better connection quality.

Manufacturers and designers of integrated circuits for wireless communication in gadgets like laptops, routers, smartphones, and Internet of Things devices are included in the Wi-Fi chipset market. These chipsets let devices connect to Wi-Fi networks, enabling data transfer and Internet access, without the need for physical cords.

According to the European Telecommunications Network Operators’ Association (ETNO), there are currently around 16 million internet-connected devices in smart buildings throughout Europe. This number is expected to skyrocket to 154 million by the end of 2025. This growth reflects the increasing reliance on and integration of smart technology in buildings, enhancing functionality and efficiency across the continent.

According to a survey conducted by the Organisation for Economic Co-operation and Development, there is an expected increase in the number of households with computers by 2025. It is projected that the number of computer households worldwide will reach approximately 1,262.47 million.

This significant rise in computer adoption presents a lucrative opportunity for market players in the Wi-Fi chipset industry. These players can capitalize on this trend by expanding their product portfolios, establishing a stronger presence in various regions, and ultimately increasing their market share.

In addition, a report from Snapchat indicates that by 2025, around 75% of the global population and almost all smartphone users will be frequent users of Augmented Reality (AR) technology. This represents a substantial market for AR-related products and services. Out of these users, it is estimated that more than 1.5 billion will be millennials, a key demographic for technology adoption and innovation.

Furthermore, the Mobile Economy China 2021 report by GSMA forecasts significant growth in smartphone connections in China. By 2025, China is expected to add approximately 340 million smartphone connections. This surge in smartphone adoption will result in a high level of smartphone usage, with 9 out of 10 connections being smartphones. The report also highlights specific figures for different regions within China, with an anticipated 1.5 billion connections in Mainland China, 12.3 million in Hong Kong, 1.9 million in Macao, and 25.7 million in Taiwan.

Key Takeaways

• The Wi-Fi chipset market size is estimated to reach USD 31.5 billion in the year 2033 with a CAGR of 5.1% during the forecast period and was valued at USD 20.4 billion in the year 2023.
• Based on the MIMO Configuration, the MU-MIMO segment has dominated the market with a share of 55.6% in the year 2023.
• Based on the bands, the dual-band segment has dominated the market with a share of 38.5% in the year 2023.
• Based on the protocol, the 802.11ax segment has dominated the market with a share of 28.7% in the year 2023.
• Based on the application, the consumer electronics segment has the largest market share of 36.5% in the year 2023.
• In 2023, North America held a dominant position in the Wi-Fi chipset market, capturing more than 41.25% of the global share.

MIMO Configuration Analysis

Based on the MIMO Configuration, the market is segmented into SU-MIMO, and MU-MIMO segments, where the MU-MIMO segment has dominated the market with a share of 55.6% in the year 2023.

There are several important reasons why MU-MIMO (Multiple User, Multiple Input, Multiple Output) dominates the Wi-Fi chipset market. By enabling numerous devices to communicate with the router at once, MU-MIMO technology dramatically increases network efficiency. This reduces congestion and enhances overall performance in crowded areas. With the exponential growth of linked devices, this skill becomes even more crucial.

MU-MIMO offers quicker and more dependable transmission speeds, satisfying the demands of bandwidth-intensive applications like streaming videos and playing online games, as the demand for high-speed data transmission and seamless connectivity rises. Furthermore, improvements in semiconductor manufacturing have reduced the cost and increased the availability of MU-MIMO chipsets, which has resulted in their broad use in the consumer and business industries.

Band Analysis

Based on the bands, the market is segmented into Single, Dual, and Tri-band segments, where the dual-band segment has dominated the market with a share of 38.5% in the year 2023.

The Dual Band segment’s superior performance and versatility have led to its domination in the Wi-Fi chipset industry. Users have the option to select between the 2.4 GHz and 5 GHz frequency bands using dual-band chipsets, depending on their individual requirements and network setup. Due to their adaptability, dual-band chipsets can provide quicker and more dependable wireless connections by mitigating the common interference and congestion problems in the congested 2.4 GHz band.

The 5GHz frequency is also better for bandwidth-intensive operations like online gaming and HD video streaming since it has lower interference and faster data transfer rates. Furthermore, dual-band chipsets offer interoperability with a broad variety of smart home devices and the Internet of Things, whose usage is only expected to increase.

Protocol Analysis

Based on the protocol, the market is segmented into 802.11ac, 802.11n, 802.11ax, 802.11b, and Other segments, where the 802.11ax segment has dominated the market with a share of 28.7% in the year 2023.

The Wi-Fi chipset market is dominated by the 802.11ax sector, which is responsible for its revolutionary improvements in speed, efficiency, and connectivity. 802.11ax, also referred to as Wi-Fi 6, has several noteworthy enhancements over its predecessors, including faster data transfer rates, enhanced multi-device management capabilities, and better performance. This next-generation technology provides a smoother, more responsive wireless experience by optimizing spectrum use and minimizing latency with features like target wake time (TWT) and orthogonal frequency division multiple access (OFDMA).

Furthermore, the 802.11ax chipset integrates sophisticated security mechanisms to safeguard against constantly changing threats, guaranteeing robust cyber Defense for users. The increased need for faster, more dependable, and more secure wireless connectivity has led to the development of 802.11ax chipsets, whose better characteristics make them the preferred choice for consumers, businesses, and service providers, which explains their dominance in the Wi-Fi chipset market.

Application Analysis

Based on the application, the market is segmented into Consumer devices, Smart home devices, Gaming devices, Drones, and Other segments. Among these, the consumer electronics segment has the largest market share of 36.5% in the year 2023.

Several important factors contribute to the dominance of the consumer electronics category in the Wi-Fi chipset industry. The demand for Wi-Fi connectivity in consumer electronics has increased due to the quick development of smart gadgets such as tablets, smartphones, smart TVs, and wearable technology. Due to the devices’ heavy reliance on Wi-Fi for communication, content streaming, and Internet access, high-performance Wi-Fi chipsets must be integrated.

The introduction of standards like 802.11ax (Wi-Fi 6) and other advancements in Wi-Fi technology have made it possible to achieve more coverage, higher data speeds, and greater dependability. increased dependability, which heightens the allure of consumer electronics products with Wi-Fi. Adoption has also been accelerated by the competitive environment and ongoing innovation among chipset manufacturers, which have resulted in the creation of affordable solutions tailored for consumer devices.

Key Market Segments

By MIMO Configuration

• SU-MIMO
• MU-MIMO

By Band

• Single
• Dual
• Tri-band

By Protocol Type

• 11ac
• 11n
• 11ax
• 11b
• Others

By Application

• Consumer devices
• Smart home devices
• Gaming devices
• Drones
• Others

Driver

Increasing Demand for Smart Home Devices

The Wi-Fi chipset market is significantly driven by the growing adoption of smart home devices, which require reliable internet connectivity to function effectively. This trend is propelled by advancements in home automation technologies and consumer preference for convenience and connected living environments. Technologies such as Internet of Things (IoT) and advancements in cloud computing have expanded the capabilities of smart home devices, making them more appealing to consumers.

As more appliances and systems within homes become connected, the demand for Wi-Fi chipsets that can support high-speed data transfer and multiple device connectivity simultaneously has surged. This is evident from the integration of advanced Wi-Fi standards like Wi-Fi 6, which are specifically designed to handle multiple connections without a decline in speed or quality​​.

Restraint

High Production Costs and Infrastructure Challenges

The development and production of advanced Wi-Fi chipsets involve high costs, which can be a major restraint in the Wi-Fi chipset market. Manufacturing these chipsets requires sophisticated and costly technology, which can increase the final product cost, impacting the adoption rate among price-sensitive consumers.

Additionally, the requisite infrastructure for optimal Wi-Fi performance, like widespread broadband access and modernized networking equipment, is not uniformly available in all regions, particularly in less developed countries. This disparity in infrastructure development can limit the effective use of advanced Wi-Fi chipsets, thereby restraining market growth​​.

Opportunity

Expansion into Emerging Markets

Emerging markets present significant growth opportunities for the Wi-Fi chipset industry. These regions are experiencing rapid digital transformation, characterized by increasing internet penetration and a growing number of internet users.

Governments in these areas are also heavily investing in digital infrastructure, such as public Wi-Fi networks, which further boosts the demand for Wi-Fi chipsets. The proliferation of mobile devices and the growing need for connectivity in public areas, educational institutions, and commercial spaces in these markets offer substantial opportunities for market expansion​.

Challenge

Coexistence with LTE and Other Technologies

One major challenge facing the Wi-Fi chipset market is the interference and coexistence issues with other wireless technologies, such as LTE in the unlicensed spectrum. Wi-Fi chipsets operating in the 5 GHz band often face interference from LTE signals, which can degrade the performance of Wi-Fi networks.

This is particularly problematic in densely populated areas where multiple wireless signals coexist. Addressing these interference issues requires the development of more sophisticated chipset designs that can mitigate the effects of signal overlap and ensure reliable connectivity in various environments​.

Growth Factors

• The increasing use and demand for electronics: The need for Wi-Fi connectivity is being driven worldwide by the explosive expansion of smart gadgets, which include smartphones, tablets, laptops, and Internet of Things (IoT) devices. The demand for Wi-Fi chipsets will rise as these devices become more commonplace in both personal and corporate settings and the necessity for dependable, fast wireless connections grows.
• Wireless Network Systems: Performance, capacity, and efficiency of networks are significantly improving as a result of evolving wireless standards like Wi-Fi 6 and the soon-to-be Wi-Fi 7. As a result, there is a greater need for compatible chipsets as device makers and network operators update their hardware to accommodate these new standards.
• Increasing need for IoT technology: Wi-Fi chipset demand is rising as a result of the development of smart cities, smart homes, and IoT-based industrial applications. To exchange, monitor, and regulate data, these applications mostly rely on flawless connectivity, opening up new opportunities for chipset deployment.
• Remote Work: The post-pandemic global shift to remote work and digitalization initiatives emphasize the value of a strong Wi-Fi infrastructure, which is motivating companies and service providers to invest in Wi-Fi chipsets.

Latest Trends

• WIFI 6: To start, two significant factors propelling market expansion are the switch to Wi-Fi 6 and the impending Wi-Fi 6E standards. With notable gains in speed, capacity, and efficiency, Wi-Fi 6 satisfies the expanding demand for high-performance wireless communication across a range of uses.
• IoT Connectivity: As the emphasis on IoT connectivity grows, more and more IoT devices are integrating Wi-Fi chipsets. The quick growth of wearables, industrial sensors, smart home appliances, and other Internet of Things (IoT) devices that rely on Wi-Fi for data transmission is what’s driving this development.
• 5G Technology: As 5G and Wi-Fi networks converge, the emergence of 5G technology is having an impact on the market for Wi-Fi chipsets. The seamless connectivity experience provided by 5G and Wi-Fi 6/6E technologies progressively complements one another, which encourages the use of Wi-Fi chipsets with improved coexistence and interoperability characteristics.
• Miniaturization: this tends to bring Wi-Fi chipsets closer together and smaller to fulfill the demands of small and power-efficient gadgets like wearables, tablets, and smartphones.

Regional Analysis

In 2023, North America held a dominant position in the Wi-Fi chipset market, capturing more than 41.25% of the global share. This leadership is primarily attributed to the widespread adoption of advanced technologies and the high penetration of Internet of Things (IoT) devices across the region.

The demand for Wi-Fi Chipset in North America was valued at US$ 8.4 billion in 2023 and is anticipated to grow significantly in the forecast period. North American consumers and businesses show a robust inclination towards integrating smart devices in their daily operations and lifestyles, from smart home systems to industrial automation, which drives the demand for high-performance Wi-Fi chipsets.

According to the International Telecommunication Union, internet access in the United States significantly increased from nearly 75% in 2012 to over 89% in 2022. By 2018, the U.S. had more than 312 million internet users, establishing it as one of the largest online markets globally. This extensive connectivity is set to impact various technology markets, including the Wi-Fi chipset market. The adoption of 5G technology is particularly influential.

A report from GSMA Intelligence, ‘Mobile Economy North America 2020’, highlights that by 2025, 5G is expected to account for more than half of all mobile connections in North America. Out of an anticipated 426 million mobile connections, 51% are projected to be 5G. Moreover, the number of mobile subscribers in the region is expected to surpass 340 million by 2025. These developments indicate a strong growth trajectory for the Wi-Fi chipset market, driven by the increasing integration of 5G networks.

The region’s market dominance is further bolstered by the presence of key technology players and innovators in the United States and Canada. These countries are home to some of the world’s leading semiconductor companies, which invest heavily in research and development.

This investment leads to the rapid deployment of newer and more efficient Wi-Fi standards, such as Wi-Fi 6 and the anticipated Wi-Fi 7, which promise greater speed and more reliable connections. Additionally, governmental support for infrastructure development and policies favoring wireless technology innovation also play a critical role in advancing the market.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

To supply Wi-Fi 6e chipsets, major Wi-Fi chipset manufacturers strategically partner with end-use clients like smartphone manufacturers. To maintain their competitiveness and increase their market share, major firms concentrate on new product launches, alliances, partnerships, and R&D initiatives. Major companies in the wireless chipset market make investments in new product development to keep up with the evolving needs of the Wi-Fi device market.

The Wi-Fi chipset market is highly competitive, with several key players dominating the industry. These players include ASUS, Dell Technologies, D-Link, Fibocom, Qualcomm, Broadcom, Intel Corporation, Mediatek, ST Microelectronics N.V., Texas Instruments Incorporated, NXP Semiconductors N.V., Samsung Electronics Co., Ltd, On Semiconductor Co., Cypress Semiconductor Corporation, and other key players.

Top Key Players in the Market

• ASUS
• Dell Technologies
• D-Link
• Fibocom
• Qualcomm
• Broadcom
• Intel Corporation
• Mediatek
• ST Microelectronics N.V.
• Texas Instruments Incorporated
• NXP Semiconductors N.V.
• Samsung Electronics Co., Ltd
• On Semiconductor Co.
• Cypress Semiconductor Corporation
• Other Key Players

Recent Developments

• In January 2024, Ceva launched a new Wi-Fi 7 IP platform that can help the developers implement the latest high and advanced features.
• In November 2023, MediaTek launched a new Wi-Fi 7 solution that can help businesses as well as retailers effectively.
• ASUS introduced its ROG Rapture GT-BE98, a quad-band Wi-Fi 7 gaming router, in January 2024. This router supports speeds of up to 25 Gbps, incorporating features such as 320 MHz bandwidth and 4K-QAM, which significantly enhance data transmission rates and network performance​.
• Qualcomm announced its latest Wi-Fi 7 chipset technology in March 2023. This chipset is designed to provide faster speeds, improved connectivity, and enhanced reliability, supporting features like 320 MHz bandwidth and 4K-QAM, which significantly improve data transmission rates and network performance​.
• MediaTek showcased its Wi-Fi 7 technology in October 2023, emphasizing the capabilities of this technology to deliver super-fast speeds and low latency transmission. This development positions MediaTek as a strong competitor in the high-speed Wi-Fi market.

Report Scope