Fundamental Business Insights reports that the Wi-Fi chipset market is projected to exceed $21 billion in 2023 and is forecast to reach $34.5 billion by 2033, growing at a CAGR of over 4.4% during this period.
The market growth is primarily fuelled by the rising usage of smartphones, laptops, Internet of Things (IoT) devices, and smart home appliances. The expansion of Internet connectivity in developing nations has further driven the demand for affordable Wi-Fi-capable devices. As smart homes become more prevalent, the need for Wi-Fi-enabled devices and the chipsets that power them has intensified. Products such as smart thermostats, door locks, security cameras, lighting controls, and speakers require Wi-Fi connectivity for remote or voice command control, boosting demand.
Security concerns, such as the potential interception of Wi-Fi signals by unauthorised individuals to access private information, pose a challenge. Users on unprotected public Wi-Fi networks risk threats like Man-in-the-Middle (MitM) attacks and malicious hotspot creation due to the absence of encryption and authentication.
Insights by category
Type: The IEEE 802.11ax (Wi-Fi 6) segment dominates the market. It offers various technical advancements, including Basic Service Set (BSS) Colouring for reduced interference and Orthogonal Frequency Division Multiple Access (OFDMA) for efficient data transmission. This makes it ideal for high-speed connectivity needs like online gaming, enterprise networks, and IoT applications.
Band: The Dual segment is anticipated to surpass $28.75 billion by 2033. Dual-band chipsets operate on both 2.4 and 5GHz bands, offering improved performance and reduced interference. They facilitate connectivity for older devices that only support 2.4GHz in environments where newer devices predominantly use 5GHz.
MIMO Configuration: The SU-MIMO segment is expected to reach $575 million by 2033. The growing number of Wi-Fi-enabled devices per household drives the demand for SU-MIMO, which caters to high-speed connection needs for activities like streaming 4K videos and online gaming.
Application: The connected home devices market is set to grow at over 5.5% CAGR from 2024 to 2033. The increasing adoption of smart home devices for convenience, energy management, entertainment, and security is driving this growth. These devices typically use Wi-Fi to connect to home networks and the Internet.
Region
North America: Valued at $4.73 billion in 2023, the region boasts a competitive Wi-Fi chipset industry. The demand for Wi-Fi chipsets is propelled by various Wi-Fi-capable devices.
Asia Pacific: Expected to experience the fastest growth from 2024 to 2033. Factors such as a large population, urbanisation, and an expanding middle class drive the Wi-Fi chipset market in this region.
Overall, the Wi-Fi chipset market is witnessing robust growth due to the increasing proliferation of Wi-Fi-enabled devices and the rising demand for internet connectivity across various regions.
