Wi-Fi Chipset Market: Growth Trends, Segmentation, and Key Insights 2024-2028

The global Wi-Fi chipset market is projected to grow by USD 6.59 billion between 2023 and 2028, at a CAGR of 5.24%. The demand for smart devices, IoT applications, and high-speed connectivity is driving the market, alongside the need for low-power chipsets supporting dual-band technology. As more businesses undergo digital transformation and remote work expands, the need for secure, high-performance Wi-Fi connectivity continues to rise. However, security vulnerabilities in Wi-Fi-enabled devices present a major challenge.

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Market Segmentation

By Type

• Dual Band
• Tri Band
• Single Band

By Application

• Consumer Devices
• Smart Home Devices
• Gaming Devices
• Drones
• Others

By Geography

• APAC

  • China

  • Japan

  • South Korea

• North America

  • US

• Europe

  • Germany

• South America

• Middle East and Africa

By Type Insights

The dual-band Wi-Fi chipset segment is expected to witness significant growth. These chipsets operate on 2.4 GHz and 5 GHz frequencies, offering better coverage, reduced interference, and higher data transfer speeds.

• The 2.4 GHz band provides longer range and better penetration through obstacles, making it suitable for large indoor environments.
• The 5 GHz band delivers faster speeds with lower congestion, ideal for video streaming, gaming, and large data transfers.

The market expansion is driven by the increasing use of IoT devices, smart industries, and digital healthcare applications. Additionally, smartphones remain the dominant category due to the growth in mobile internet usage.

Regional Market Trends

APAC

• Expected to contribute 43% to global market growth.
• Leading manufacturers in China, Japan, and South Korea drive regional expansion.
• The telecommunications sector is rapidly advancing in India, Thailand, and Malaysia.
• Growth in consumer electronics due to rising disposable incomes in emerging economies.

North America

• The US remains a key market, with increasing demand for high-speed wireless connectivity across multiple industries.

Europe

• Germany leads the regional market due to strong technology adoption and consumer electronics growth.

South America and Middle East & Africa

• Expansion fueled by rising urbanization, growing tech adoption, and increasing public Wi-Fi networks.

Market Dynamics

Market Driver: Increasing Digitalization of Businesses

• Businesses are integrating Wi-Fi-enabled solutions to enhance efficiency and customer experience.
• According to IDC, 69% of Indian organizations have adopted digital transformation strategies.
• Virtual reality (VR) applications require high bandwidth and low latency, driving demand for energy-efficient Wi-Fi chipsets.
• Wi-Fi technology continues to evolve to support data utilization, manufacturing efficiency, and enhanced connectivity.

Market Trend: Rising Demand for Smartwatches

• Smartwatches have evolved into multifunctional devices, enabling VR, real-time notifications, and online communication.
• Wi-Fi chipsets in smartwatches enable internet access, messaging, and media streaming.
• Growth is driven by affordable smartwatch penetration in emerging economies and traditional watch manufacturers entering the market.
• Key players such as Huawei, Lenovo, and Zeblaze are expanding their smartwatch portfolios.

Market Challenge: Security Threats in Wi-Fi-Enabled Devices

• Cloud-based Wi-Fi devices enhance convenience but raise cybersecurity concerns.
• Unauthorized access to cloud data could lead to cybersecurity risks.
• Enterprise Wi-Fi security solutions are more advanced than consumer-grade routers, leading to cost challenges.
• The demand for secure, low-latency, and energy-efficient Wi-Fi chipsets is increasing to address these challenges.

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Key Players

• ASUSTeK Computer Inc.
• Broadcom Inc.
• Cisco Systems Inc.
• GCT Semiconductor Inc.
• Huawei Technologies Co. Ltd.
• Infineon Technologies AG
• Intel Corp.
• Marvell Technology Inc.
• MediaTek Inc.
• Microchip Technology Inc.
• NXP Semiconductors NV
• ON Semiconductor Corp.
• PERASO INC.
• Qualcomm Inc.
• Realtek Semiconductor Corp.
• Samsung Electronics Co. Ltd.
• Skyworks Solutions Inc.
• Sony Group Corp.
• Texas Instruments Inc.
• Espressif Systems Shanghai Co. Ltd.

Future Market Insights

• Increasing integration of 5G and Wi-Fi 6 technologies to improve connectivity, efficiency, and security.
• Growth in public Wi-Fi networks, in-store Wi-Fi, and smart cities driving demand for advanced Wi-Fi chipsets.
• Expansion of virtual reality, augmented reality, and IoT applications enhancing Wi-Fi chipset adoption.
• Focus on energy efficiency, network security, and manufacturing optimization shaping future market trends.