Wi-Fi Chipset Industry to Grow with Rising Demand from the Healthcare Sector

The global Wi-Fi Chipset industry size will witness an appreciable gain in the wake of robust demand for increased connectivity and high-performance networks, according to the “Wi-Fi Chipset Industry Data Book, 2023 – 2030,” published by Grand View Research. Demand for super-fast speed and exponential capacity to keep up with the current trend will bring a paradigm shift in the ecosystem. Moreover, technological advancements in smartphones, automotive, wireless networks, and PCs will augur innovations in the market. Wi-Fi solutions, including Wi-Fi 7, can provide immersive connectivity and reliable and responsive experiences amidst the trend of streaming the latest 8K movies, video conferencing, and gaming.

Championing Wireless Communication

Wi-Fi 7 has garnered immense popularity in light of ultra-low latency, tremendous wireless internet speeds, and outstanding throughput gains. The bespoke solution has multilink options that can minimize latency and propel throughput. Wi-Fi 7 has become sought-after in a bandwidth-intensive environment for increased network capacity and lower-latency XR designed for advanced video conferencing, gaming, and casting virtual work. In December 2022, Qualcomm introduced new Wi-Fi 7-capable chipsets that can render over 20 Gbps of total system capacity. It will provide maximum connectivity to high-performing devices with a peak speed of up to 5.8 Gbps to a single connected device. The Wi-Fi 7 market size was valued at USD 0.22 billion in 2021 and it is poised to witness a triple-digit CAGR of 106.2% from 2022 to 2030.

Soaring demand to connect more devices to the network has spurred the penetration of Wi-Fi 6E across business verticals. The technology extends Wi-Fi 6 into the 6GHz spectrum, bolstering speeds, offering more security to the network and lower latency. For instance, the network has gained ground in healthcare to transfer large data files, including MRIs or performing telehealth appointments without interruptions. Moreover, the retail sector can cash in on the technology by streamlining point-of-sale connections, thereby boosting brand position. These dynamics have substantiated the Wi-Fi 6E market size of USD 2.37 billion in 2021 and its estimated CAGR of 27% during the forecast period.

Wi-Fi 6 Invaluable across Industry Verticals

The advent of next-generation wireless technologies, including Wi-Fi 6 and 5G, has brought a paradigm shift in the business landscape. Notable trends for connected devices, metaverse, AR/VR, gaming, and cloud computing have boded well for market growth. In essence, the automakers have augmented investments in Wi-Fi 6, largely on the back of demand for autonomous cars and the footprint of vehicle-to-vehicle communication to avert accidents. An increasing penetration of infotainment has prompted automakers to seek Wi-Fi 6 and 5G.

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Lately, residential spaces have witnessed an influx of smart home devices, such as CCTV cameras, thermostats, and doorbells, which have redefined wireless networks. With Wi-Fi-enabled devices gaining ground across industry verticals, incumbent manufacturers are expected to augment their strategies to gain a competitive edge.

Trends to Watch Out for Through 2030

Stakeholders are likely to focus on dynamics slated to influence the RoI. Some factors are elucidated below:

• IoT devices on the 6GHz spectrum have the innate ability to offer important real-time updates from non-business critical communication.
• Government agencies are likely to seek the technology for added security as they prioritize various technologies to underpin the digital business.
• Trends for 8K video streaming and social cloud-based gaming will encourage manufacturers to inject funds into wireless technologies.
• Growing applications of augmented reality and virtual reality in the supply chain, training & simulations, and hiring and remote onboarding will accentuate innovations.
• Europe is likely to account for a considerable share of the global market due to the growing penetration of smartphones, laptops, and tablets. Besides, the expanding footfall of hospitality, healthcare, and retail sectors across the U.K., France, Italy, and Spain has boded well for regional growth.

Stakeholders Count on North America

North America’s Wi-Fi chipset industry share will receive impetus in light of the surging Wi-Fi penetration across airports, buses, sports stadiums, trains, and malls. In-store Wi-Fi has emerged as a robust business strategy to boost in-store engagement in the retail sector. Besides, the rising footfall of smart home devices, in-vehicle infotainment, and expanding penetration of Wi-Fi 6E devices have solidified the position of the U.S. and Canada in the global landscape. Bullish government policies have underscored the North American market. In April 2020, the U.S. Federal Communications Commission opened the 6 GHz spectrum, encouraging leading players to bolster their portfolios.

Incumbent companies have emphasized organic and inorganic strategies, including technology advancements, R&D activities, innovation, collaboration, and mergers & acquisitions. For instance, in May 2022, Cisco announced its first outdoor Wi-Fi 6E-ready access point for industrial sites. The company expects wireless connectivity to complement automation, AGVs, and autonomous robots.

Deployment and management of services for high-throughput, increased productivity and agility will leverage companies to underpin the expansion of Wi-Fi 6 and 6E and propel the development of Wi-Fi 7. Amidst wireless innovations, users will continue to demand advanced experiences, including low latency for advanced video conferencing and social gaming. CIOs and IT decision-makers are relying on the penetration of smart home technologies, cloud services, and IoT devices to solidify their positions in the industry.