Wireless Communication Chipsets Market Analysis by IEEE Standard (802.11be, 802.11ax, and 802.11ac), and by End User (Consumer, Smart Home, AR/VR, and Networking Devices) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3748 | Published Date: Mar 31, 2023
The global wireless communication chipsets market is estimated to garner a revenue of ~USD 155 billion by the end of 2035 by growing at a CAGR of ~20% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 110 billion in the year 2022. The market growth is majorly attributed to increasing demand for wearable smart devices such as smartphones, laptops, and tablets. In the year 2020, it had over 6 billion smartphone users worldwide, and in the year 2021, it was noted to already have 6.4 billion. This number is expected to reach approximately 7.3 billion by 2025. It is closely associated with technological advancements in the microelectronics and software sector, and increasing capabilities and scalability of real-time embedded systems are also expected to drive market growth in the coming years. Moreover, the rapid expansion of the IT sector in both developed and developing countries and the launch of new brands working on wireless technology are expected to bring ample growth opportunities to the market in the near future. A wireless chipset is an internal hardware design used in a wireless communication system or computer to communicate with other wireless devices.
Wireless communication chipsets are used in a wide range of applications, including smartphones, tablets, laptops, routers, IoT devices, wearables, and other wireless devices. They are also used in infrastructure equipment such as base stations, access points, and gateways. Hardware components such as external WLAN (wireless local area network) cards and WLAN adapters use WLAN chipsets. Current wireless phones include 3 and 4G networks, Bluetooth and Wi-Fi technologies.
The performance and features of wireless communication chipsets can vary depending on the application and the protocol they support. For example, some chipsets may support higher data rates, longer range, lower power consumption, or multiple antennas for better performance in a specific use case. In summary, wireless communication chipsets are critical components that enable wireless communication in a variety of devices and applications. They integrate a wide range of functions to ensure reliable and efficient communication over the airwaves.
In addition, growing digitalization across the world is estimated to boost the growth of the global wireless communication chipsets market notably over the forecast period. Digitalization refers to the process of converting analog information into digital format so that it can be processed and stored using computers and other digital devices. It involves the use of technology to transform physical objects or data into a digital form that can be easily accessed, shared, and analyzed. In business, digitalization has enabled organizations to streamline their operations, improve efficiency, and increase productivity. It has also created new opportunities for innovation and growth, such as the development of new products and services, and the creation of new business models.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~20% |
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Base Year Market Size (2022) |
~ USD 110 Billion |
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Forecast Year Market Size (2035) |
~ USD 155 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global wireless communication chipsets market is segmented and analyzed for demand and supply by IEEE standard into 802.11be, 802.11ax, and 802.11ac. Out of the three types of standards, the 802.11ax segment is estimated to gain the largest market share of about ~40% in the year 2035. The growth of the segment can be accredited to the standard's higher spectral efficiency compared to other existing IEEE standards. Apart from that, 802.11ax offers a good average speed of around 10 Gbps with a maximum throughput of 30 Gbps. This should also boost the growth of the market segment in the future. Moreover, the consumer segment based on end-users is estimated to gain the largest share during the forecast period. This is owing to the proliferation of consumer devices, primarily smartphones, around the world. Officially marketed by the Wi-Fi Alliance as Wi-Fi 6 (2.4 GHz and 5 GHz) and Wi-Fi 6E (6 GHz), IEEE 802.11ax is an IEEE standard for wireless local area networks (WLAN) and the successor to 802.11ac. Also known as High Efficiency Wi-Fi owing to the overall improvement of Wi-Fi 6 clients in high-density environments.
The global wireless communication chipsets market is also segmented and analyzed for demand and supply by route of administration into consumer, smart home, AR/VR, and networking devices. Amongst these four segments of end users, the smart home segment is expected to garner a significant share of around ~30% in the year 2035. A smart home refers to a convenient home setup that allows you to connect to the internet via mobile or other connected device and remotely and automatically control appliances and devices from anywhere. Devices in smart home are connected via the internet, allowing users to remotely control features such as home security, temperature, lighting, and home theater. Smart homes allow homeowners to remotely control appliances, thermostats, lights, and other devices using smartphones and tablets over an internet connection. A smart home can be set up using a wireless or wired system. The growth of the segment can be accredited to the spiking internet usage around the various organizations. Statistics show that total Internet access has increased by nearly 50% to 70% as millions of people go online for entertainment and other purposes.
Our in-depth analysis of the global wireless communication chipsets market includes the following segments:
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By End User |
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By IEEE Standard |
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The wireless communication chipsets market in the Asia Pacific region, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The regional growth can majorly be attributed to the fact that the region is increasingly focused on improving technological processes and high manufacturing output. In the year 2020, China's manufacturing output was about USD 3.85 trillion, an increase of 0.8% from the year 2019. Moreover, increasing penetration of the internet among the regional population is expected to boost the market growth in the region in the future. Moreover, the regional market is also expected to gain a prominent share during the forecast period owing to the high adoption rate of modern technology based smart devices and the strong presence of key market players in the region. Open Wireless Network means any network or segment of a network (designed, tested, and approved for transmission by the state) that has not been designated as a protected network by the Department of Information Technology or a representative of the State of New Hampshire and is open considered a network. Sending unencrypted PI, PFI, PHI, or sensitive DHHS data is not secure enough. Wireless means a Wireless Handheld Validator used with a corresponding Wireless Local Area Network (WLAN) as part of an Approved Gaming System.
The wireless communication chipsets market in the North America region market, amongst the market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to the increasing use of wireless communication chipsets solutions and services, including the highest adoption rate of 5G, and cooperation of market players to efficiently deploy wireless communication chipsets at scale, which is estimated, to drive the market growth. It is estimated that by the year 2025, more than 60% of all North American cellular connections will be the 5G networks. vEPC is an important part of advanced wireless communication. Virtual Evolved Packet Core (vEPC) is a cellular network voice and data processing and switching framework implemented by Network Functions Virtualization (NFV) that virtualizes the functions of the Evolved Packet Core (EPC). EPC refers to the core network architecture that aggregates access networks including LTE, 3G or 2G. Virtual EPC (vEPC) is a complete LTE packet core solution based on Network Function Virtualization (NFV) technology. The Evolved Packet Core helps combine voice and data in an Internet Protocol Services Architecture. It helps the service operator to operate and deploy its 2G, 3G, LTE, WiFi or packet networks for fixed access such as cable and DSL.
Further, the wireless communication chipsets market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the commercialization of emerging 5G technologies in the region. According to the European 5G Observatory, as of September 2020, a total of 18 countries in the European Union (EU-27) have commercialized its 5G services and are promoting adoption of 5G handsets in the European Union. Consumer electronics such as 5G-based smartphones, wearable devices, and tablets are equipped with Wi-Fi chipsets. These chipsets will improve energy efficiency and data transfer speeds for 5G end devices and reduce network congestion. Increasing government initiatives to develop public Wi-Fi infrastructure are having a significant impact on the country. In April 2020, the Italian government announced the rollout of free public Wi-Fi infrastructure in Emilia Romagna, Italy. The Wi-Fi network provides Gigabit connectivity to over 5,000 of Wi-Fi hotspots in the area. Similar government initiatives to promote digitization and public Wi-Fi infrastructure is expected to boost the regional market.
Intel announces acquisition of Rivet Networks to expand Intel's WiFi offerings for PC platforms by maximizing Wi-Fi bandwidth utilization and optimizing wireless network connectivity.
Broadcom announced the launch of the BCM4389, the world's first Wi-Fi 6E chip for mobile devices.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Growing demand for portable smart devices, and increasing technological advancements in the microelectronic and software sector are the major factors driving the growth of the wireless communication chipsets market.
Ans: The market is anticipated to attain a CAGR of ~20% over the forecast period, i.e., 2023 – 2035.
Ans: The high manufacturing cost of complex embedded systems are the challenges affecting the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Intel Corporation, Freescale Semiconductor Inc., GCT Semiconductor Inc., GainSpan Corporation, Broadcom Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by IEEE standard, end user, and by region.
Ans: The 802.11ax segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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