Wireless Connectivity IC Market size is projected to witness substantial growth from 2023 to 2032, on the account of the growing adoption of smart home devices that run on multiple connectivity solutions such as Bluetooth, Wi-Fi, Sub-1 GHz, and Zigbee among others.
This technology offers the benefit of cost-effectiveness and increased mobility for users, which will lead to high growth in the global market in the coming years. With growing technological advancements, demand for smart devices is expected to rise notably, further driving market expansion.
Smart devices, such as watches, fitness trackers, speakers, TVs, and even robot vacuums, have penetrated the consumer electronics market at a rapid rate in recent years. According to a survey by Reviews.org, nearly 35% of Americans owned at least one smart speaker in 2021. These trends will ensure steady growth in the overall wireless connectivity IC market and unlock opportunities for novel innovation from market players.
With respect to technology, the IoT segment is slated to witness high market revenues during the forecast period, fueled by the growing popularity of connected devices across several industrial applications, including automotive, logistics, and e-commerce. Technological innovations have led to many advancements in smart devices, making way for connected concepts such as connected cars and connected homes. The segment will also benefit from the rising adoption of smart safety and home security devices, which include video doorbells, outdoor/indoor security cameras, and motion detectors.
Based on application, the automotive segment will likely account for a significant market share by 2032, as the concept of technology-integrated cars proliferates in the sector. Vehicle connectivity recently gained traction with the emergence of Wi-Fi 6 networks, which ensures more robust safety measures for the vehicles.
Users can access services like maps and navigation over the vehicle’s Wi-Fi, and even additional services like live traffic visualization and music streaming through the infotainment systems.
Asia Pacific wireless connectivity IC market is anticipated to expand rapidly in the forecasted period, driven by the rising deployment of 5G networks and the presence of major market players in the region. As per a GSMA report, 96% of the population in the region has mobile broadband networks, with 1.2 billion internet users. Deployment of 5G in the region will lead to the adoption of cloud services, edge computing, and IoT, which will drive growth and demand in the regional market. The region is also witnessing a rise in projects for the development of wireless communications.
Wireless connectivity IC market landscape comprises companies such as DNA technology, MediaTek Inc, STMicroelectronics, Texas Instruments, Cisco Systems, Silicon Labs, Renesas Electronics Corporation, Maxim Integrated, NXP Semiconductor, Microchip, Toshiba Corporation, Qualcomm, and Cypress Semiconductor (Infineon). In order to meet a growing demand amid increased smartphone penetration, these players are undertaking strategic partnerships.
Impact of the Russia-Ukraine conflict on the Wireless Connectivity IC Industry
Wireless connectivity IC market has been greatly affected by the ongoing Russia-Ukraine conflict. The communications infrastructure was one of the first to be attacked at the start of the war, highlighting the importance of communications and cybersecurity.
The conflict has further worsened the ongoing semiconductor shortage due to severe disruptions to the supply chains. Russia and Ukraine are major producers of palladium and neon, two crucial raw materials used in semiconductors.
The longer the conflict draws, the more severe the semiconductor shortage is likely to become. While provisions are being made to diversify the semiconductor production cycle, the effects of these efforts are likely to take years to become measurable enough to offset the absence of two major raw material suppliers