Wireless Connectivity IC Market size is anticipated to witness strong growth over the forecast period owing to growing adoption of wireless technologies in consumer electronics products. The electronics manufacturers are aiming to introduce several wireless products, such as wearables, smart home devices, and chargers, augmenting the growth of the wireless connectivity IC market. The trend of improving the ease of use by eliminating complex wired connections in several devices is increasing the adoption of these devices. The application areas of this technology are growing in the automotive sector, industrial products, computers, healthcare, and commercial sector, driving the adoption of technologies such as wireless local area network, low power wireless, and Bluetooth.
The emergence of IoT will contribute significantly to the growth of the wireless connectivity IC market. IoT technology integrates multiple devices into a wireless network for the efficient management and transfer of data. The enterprises and organizations are using IoT devices for enabling data exchanges within operators, manufacturers, and connected devices. The IoT technologies have helped to provide real-time guidance to the workforce about the inventories as well as customers. The improved data management allows businesses to manage risks more effectively. As a result, many of the enterprises are using IoT devices to make better decisions with actionable insights, ensuing the growth of the wireless connectivity IC market.
The consumer electronics sector has witnessed immense growth over the years and the introduction of several wireless devices such as wireless chargers, headphones, smart wearable devices, keyboards, and mice. The rapid growth of smartphone users has driven the introduction of several wireless accessories to improve the user experience. For instance, several companies including Apple, Oneplus, Huawei, and Xiaomi have introduced wireless headphones to enhance the experience of customers. Wireless chargers are also making their way to the smartphone market with some of the leading companies, such as Google and Samsung, introducing their products. In October 2018, Google introduced the Pixel stand for the wireless charging of smartphones. Devices including wearable fitness bands are also witnessing rapid adoption owing to features, such as activity tracking, heart rate monitoring, sleep tracking, and others, propelling the growth of the wireless connectivity IC market.
The wireless connectivity IC market is expected to have considerable growth potential in the automotive sector. The developments of advanced electronics in the automotive sector are increasing the adoption of a large number of wireless technologies. Automotive manufacturers are highly inclined to implement advanced features in vehicles such as GPS navigation systems and Bluetooth connectivity. The safety requirements and the growing internet penetration have brought connected car technologies in the automotive industry, boosting the growth of the market. The connected cars can considerably improve vehicle safety with features such as route optimization and communications with other vehicles.
Cisco Systems, Texas Instruments, Toshiba Corporation, Qualcomm, NXP Semiconductor, Silicon labs, DNA technology, Maxim Integrated, MediaTek Inc, STMicroelectronics, Microchip, Renesas Electronics Corporation, and Cypress Semiconductor are some of the key players in the wireless connectivity IC market. Fast developments in the electronics industry are bringing rapid product developments by manufacturers in the market. In February 2019, Broadcom introduced its Wi-Fi 6 chip BCM 43752, which is particularly developed for mass-market smartphones. This chip provides features such as improved performance in crowded places, multi-band operations, and advanced roaming capabilities.
Asia Pacific is anticipated to be the key region for the wireless connectivity IC market. Asia Pacific has witnessed high growth in the number of users of consumer electronics products particularly smartphones. The countries including South Korea, China, and India will highly contribute to the growth of the market in the region. China is one of the major manufacturers of electronics products with major players such as Lenovo, Huawei, and Xiaomi. The country has highly developed the manufacturing industry owing to the availability of cheap raw materials and labor force. South Korea has been at the forefront of the adoption of 5G technology. In April 2019, the country launched the world’s first 5G mobile network nationwide. The faster data transfer speeds and improvements in communication technologies due to 5G are expected to augment the growth of the wireless connectivity IC market in the country.
Higher costs associated with wireless devices particularly smart electronic gadgets will be one of the restraining factors for the wireless connectivity IC market. Devices, such as smart wireless speakers, earbuds, and fitness trackers, are relatively expensive. Another restraint for the market is data privacy & security issues in IoT. The IoT technology comprises a number of connected devices, which contain user information such as credit card information, name, and address. Some of these devices transfer information over the network without any encryption. There are several IoT devices in use currently, while a majority of these devices do not get enough security updates on a regular basis, making them prone to hackers and other security concerns, which can affect the growth of the market.