WiFi chipsets: Top trends propelling the industry
According to a recent study from market research firm Graphical Research, the global WiFi chipsets market size is set to register a significant growth during the forecast timeframe. A robust expansion is observed across WiFi chipsets market worldwide. Hospitals, coffee shops, colleges and hotels are stimulating the demand for public WiFi connection so that the staff members and customers can get their work done at a much faster pace.
There is an increased demand for 5G technology as well in various countries across the world, especially the developed economies. For example, according to the statistics released by the European 5G Observatory, 18 countries in the European Union (EU) have commercialised 5G services.
Consumer electronics market is seeing rise in use of 5G technology in laptops, smartphones, tablets and many other devices as they have an in-built WiFi chipset. Use of these chipsets improves the overall efficiency of a device and data transmission takes place at a much faster rate. They reduce network connectivity problems as well.
Some of the trends that will encourage the growth of WiFi chipsets market across the world are mentioned below:
Adoption of smart factories in North America
North America is increasingly developing smart factories. These factories are equipped with WiFi chipsets, wireless sensors, industrial robots, industrial PCs and gateway devices. Increasing use of strong IoT infrastructure as well is resulting in the robust growth in demand for WiFi chipsets in the region.
For example, Schneider Electric launched its first-ever smart factory in June 2019 in the US. It uses WiFi technology and industrial IoT to increase the productivity of a manufacturing plant.
Use of connected home devices in North America
While analysing demand for WiFi chipsets market in North America on the basis of application, the segments is divided by laptops, smartphones, tablets, desktop PCs and connected home devices. Out of these, connected home devices will show promising growth in the coming years in the region and is reported to showcase a CAGR of more than six percent. In fact, this segment held a market share of over 30% in the year 2019.
One of the major reasons attributed to this is the rise in the demand for smart residential homes in the region. Smart homes use advanced technologies to make daily tasks easier and to complete them at a faster pace. They incorporate devices like service robots, security systems with sensors, smart TVs, smart speakers and many more. Around 69% of households in the US. have at least one connected home device in their homes, according to a January 2020 report by the Consumer Technology Association.
Scope of IEEE 802.11n standard in Asia Pacific
Out of the different network standards in Asia Pacific, IEEE 802.11n standard is projected to show strong growth prospects in the coming years. In fact, the segment showed strong revenue figures as it earned $960 million in 2019. The reason for this is its ability to extend the range of wireless transmission and providing reliability and enhanced network speed. The chipsets having this network standard possess high data transmission speed as well; it can transfer data at a rate of 600 Mbps.
The demand for this network is mostly seen in large scale enterprises wherein internet speed is of utmost importance and outdoor locations where strong internet connectivity is required.
APAC witnesses demand for dual band configuration
While analysing demand for WiFi chipsets on the basis of frequency, the APAC WiFi chipsets market is divided into single band, dual band and tri band configurations. Out of these, the dual band configuration sector is expected to experience steady increase in demand as it will grow at a CAGR of 3.5% up to 2026. It uses both the 2.4GHz and 5GHz frequency bands and offers a wide range of benefits to its end-users. It provides enhanced network speed and is quite frequently used in automotive industry.
China’s potential in demand for WiFi chipsets
When it comes to analyzing country-wise demand for WiFi chipset in Asia Pacific, it is being reported that China will be a leader in this market, thanks to increased demand for high-speed network and rising use of the Internet. According to market experts, the regional industry will register a growth rate of four percent in the forthcoming years.
The Chinese government has established a strong public network infrastructure to cater to the rising number of internet users in the country. According to national statistics focusing on the use of strong network among the population, it was found that 800 million Chinese people used strong internet network services to work in remote regions.
Laptops sales will increase in Europe
Rise in gaming culture in Europe will foster demand for laptops in the region. The sale of laptops has skyrocketed in recent years. According to a Gaming Industry report published in 2019 by the Interactive Software Federation of Europe (ISFE), sale of gaming and general-purpose laptops recorded a whopping 18% sales revenue in 2018 alone. WiFi chipsets offer several benefits to gaming laptop users like high speed, greater connectivity, greater mobility of devices and ease of handling.
Italy will record growth in WiFi chipset sales
Italy will play a vital role in fostering WiFi chipsets market in Europe and is expected to register a CAGR of 3.5% through 2026. The reason for this is being attributed to an incredible rise in several government initiatives in building a strong public network infrastructure. For example, the country’s government announced in April 2020 that it will launch free public WiFi in Emilia Romagna, Italy. This network will support more than 5,000 WiFi hotspots.