DUBLIN, April 8, 2021 /PRNewswire/ -- The “Wi-Fi Chipset Market with COVID-19 Impact By IEEE Standard (802.11be, 802.11ax, 802.11ac), End-use application (Consumer, Smart home, AR/VR, Networking Devices), Band, MIMO configuration, Vertical and Geography - Forecast 2026“ report has been added to ResearchAndMarkets.com's offering.
The Wi-Fi chipset market was valued at USD 19.7 billion in 2020 and is estimated to reach USD 25.2 billion by 2026; it is anticipated to grow at a CAGR of 4.2% during the forecast period (2021-2026).
The growing number of public Wi-Fi hotspots, adoption of Internet of Things (IoT), growth of Wi-Fi in enterprise and business, rising need for faster data transfer and significant increase in the internet penetration rate are significant driving factors in the Wi-Fi chipset market during the forecast period. The growth of the Wi-Fi chipset market would also largely depend on the success of new Wi-Fi technologies, including IEEE 802.11ad (WiGig), and 802.11ax standards. However, several factors, such as the decline in the shipment of tablets and PCs over the last few years and long standardization and certification time, are hindering the growth of the Wi-Fi chipset market. Moreover, the increase in coexistence issues with LTE in LTE-U due to the use of the 5 GHz band is a major challenge for Wi-Fi chipset manufacturers.
The tri band segment is expected to account for a 24% share of the overall Wi-Fi chipset market by 2026. The high growth of the tri-band Wi-Fi chipset segment is attributed to the use of 802.11ac in smartphones and Wi-Fi access point equipment. The upcoming 802.11ax or Wi-Fi 6 is expected to provide 160 MHz channel widths to accommodate data-hungry applications over the 6 GHz band; it could lead to the adoption of Wi-Fi 6 and next-generation security of WPA3
With the emergence of several smart appliances that can connect to the internet and smartphones, the IoT technology market for the consumer electronics segment is expected to witness healthy growth, and so is the Wi-Fi chipset market. Therefore, it tends to hold the major share of the Wi-Fi chipset market during the forecast period. Similarly, wide coverage range, fewer access points, minimized costs, and simplified network deployment are the factors fueling the demand for Wi-Fi 6 in enterprises, which was the second-largest market for Wi-Fi chipsets in 2020.