Wi-Fi Chipset Market Trends

Growth Drivers

• Government Support and Public Wi-Fi Infrastructure: To address concerns such as the digital divide and to improve digital literacy globally, various governments are emphasizing public wi-fi infrastructure as a strategic tool. The initiatives, such as the Prime Minister Wi-Fi Access Network Interface (India) and SA Connect (South Africa), are fueling the demand for wi-fi chipsets embedded in mesh systems, routers, and access points utilized in urban and rural connectivity solutions. Companies such as MediaTek and Qualcomm are developing high-performance chipsets. For instance, in April 2024, Qualcomm introduced the QCC730 Wi-Fi SoC, designed for ultra-low-power applications, aiming to compete with Bluetooth in battery-operated IoT devices. This chipset is tailored to deliver efficient wireless connectivity in environments with numerous connected devices.

• Surge in adoption of smart home: There is an increase in the adoption of smart homes with the rising demand for an easy and comfortable lifestyle. This trend is significantly fueling the growth of the market. Consumers are leveraging smart lighting, voice assistants, and remote settings in electronic appliances in their daily lives, with the help of Wi-Fi. To align with this trend, the manufacturers are implementing advancements in the chipsets and maintaining reliable connections across multiple devices. For instance, in November 2024, Amazon launched its next-gen Echo Show 21, featuring upgraded Wi-Fi 6E connectivity to ensure smoother streaming and more responsive smart home control.

Challenges

• Competition from alternative technologies: The market is facing intense competition due to the availability of alternative wireless technologies such as LoRa, Z-Wave, Bluetooth, and 5G. Use cases such as remote monitoring, smart agriculture, and Industrial IoT significantly benefit from the features of these technologies, including enhanced efficiency, longer range, and less power consumption, which are often lacking in Wi-Fi. This competition among the technologies is restricting the expansion of the market in the developing wireless network ecosystem.