Wi-Fi chipset market poised to hit $34.5bn by 2033 with 4.4% CAGR

According to a report by Fundamental Business Insights, the Wi-Fi chipset market has been expected to surpass US$21 billion by 2023 and is projected to escalate to over US$34.5 billion by 2033, expanding at a compound annual growth rate (CAGR) of over 4.4% over the foregoing decade.

The steady growth in the adoption of smartphones, laptops, Internet of Things (IoT) devices, smart home appliances, and other connected devices is fuelling the demand for Wi-Fi chipsets. As the proliferation of the IoT exerts an influence in sectors such as wearable technology, smart appliances, industrial automation and medical devices, the demand for Wi-Fi chipsets broadens. Additionally, the spread of internet connectivity in developing countries has catalysed the requirement for low-cost Wi-Fi-enabled devices, thus propelling activities in the Wi-Fi chipset market.

Popularity and consumer reliance on automated and networked homes have seen a surge in the need for Wi-Fi-enabled devices and their underpinning chipsets. Smart home devices ranging from thermostats and door locks to security cameras, lighting controls and smart speakers all require Wi-Fi for connectivity to user interfaces like tablets and smartphones. The growing consumer interest in home automation and the convenience of controlling various home devices remotely or via voice commands have further boosted the market for Wi-Fi chipsets.

The rising ubiquity of Wi-Fi signals also poses a potential security risk, with unauthorised individuals capable of intercepting private information being transferred between devices or from devices to access points. This can lead to unauthorised access to confidential or sensitive data, particularly for users connecting to unprotected public Wi-Fi networks where encryption and authentication may be lacking. Consequently, threats such as Man-in-the-Middle (MitM) attacks or illicit hotspot creation present substantial risks.

Analysing market segments, the IEEE 802.11ax or Wi-Fi 6 offers promising benefits over previous standards with technical enhancements including Basic Service Set (BSS) Colouring and Orthogonal Frequency Division Multiple Access (OFDMA) providing higher capacity connectivity, thus being particularly suitable for online gaming and activities relying on high-speed connectivity. Furthermore, the dual-band chipset segment of the market, which enables devices operation on both the 2.4 GHz and 5 GHz bands, is believed to burgeon over US$28.75 billion by 2033.

Regarding the growth of Single-User Multiple Input Multiple Output (SU-MIMO) technology, it is projected to reach US$575 million by the end of 2033 owing to the ongoing demand for higher data rates and faster connectivity.

In the sphere of connectivity, the popularity of smart homes has spurred an increased adoption of smart devices resulting in the market for connected home devices expected to grow at a rate of more than 5.5% CAGR from 2024 to 2033. Voice assistants, security cameras, smart appliances, smart thermostats, smart lighting, smart door locks and many other products connect to home networks and the internet via Wi-Fi.

In the view of geographical trends, the North American Wi-Fi chipset market, which includes the US and Canada, was valued at US$4.73 billion in 2023. The Asia Pacific region is predicted to witness the fastest market growth from 2024 to 2033, driven by its large population, growing urbanization and ascending middle class, pushing demand for Wi-Fi chipsets.