Market Trends of Wireless Connectivity Chipset Industry
This section covers the major market trends shaping the Wireless Connectivity Chipset Market according to our research experts:
Increasing Internet Penetration into Homes and Enterprises
- Internet penetration scaled up in the modern world. According to the International Telecommunication Union, approximately 4.9 billion people, or close to 63% of the world's population, were dependent on the internet in 2021.
- Moreover, according to International Telecommunication Union, the Asia-Pacific region had the highest number of internet users worldwide in 2021, with China and India topping the list. These factors are driving opportunities for Wi-Fi vendors in homes and enterprises, increasing the demand for Wi-Fi chipsets.
- The evolution of the Wi-Fi network technology allowed users to experience faster speeds and lower latency. It prompted the rapidly increasing use of data-heavy services and applications. The significant rise in the volume of data being carried by Wi-Fi networks has been primarily driven by consumer demand for video and business and consumer moves to cloud services. This factor is expected to drive the need for a wireless 5G connection that offers fast and high-capacity networks.
- According to Ericsson's Mobility Report, the monthly average usage of mobile data in North America is expected to reach 49GB per month and smartphones in 2026. A smartphone-savvy consumer base, video-rich applications, and large data plans will drive traffic growth. While there may be robust growth in traffic per smartphone in the near term, the adoption of immersive consumer 5G connections utilizing AR and VR is expected to lead to an even better growth rate in the long term.
- Lower latency is also poised to enable high-speed virtual and augmented reality video without glitches or delays. Mobile connectivity can be strengthened with small cell infrastructure, densifying 5G wireless signals and improving their movement through concrete buildings and walls. Small-cell antennas will also enhance wireless connection supporting more devices on the same network simultaneously. Such developments are expected to drive the market studied.
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Asia Pacific is Expected to be the Fastest-growing Market
- The outbreak of the COVID-19 pandemic partially promoted the demand for tablets in the market. Due to the COVID-19 pandemic, various educational institutions were forced to shift toward online education. This shift in the need for more extensive and convenient screen sizes is expected to promote the demand for tablets in the market, thereby increasing the demand for wireless connectivity chipsets in the market.
- Various Indian multinational educational technology companies, such as Byju's, provide their students with a tablet as a part of their educational curriculum to educate the students via digital methods along with the traditional methods of teaching.
- Such initiatives by the companies in the market are expected to further promote the demand for tablets, smartphones, and other consumer electronics in the market, thereby driving the wireless connectivity chipsets market for tablets in the region during the forecast period.
- The increasing demand for internet services in the Asia-Pacific region is also expected to promote the adoption of wireless connectivity chipsets in the region. As per the prime minister of India, the launch of 5G internet services in India is expected to bring new economic opportunities and societal benefits to the nation.
- Due to the increasing availability and affordability of 5G smartphones and the rapid adoption of smartphones in urban and rural areas, 5G subscriptions are expected to rapidly increase to reach approximately 50 million in the region by the end of 2023.
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