Wireless Connectivity IC Market is expected to witness a lucrative growth from 2022 to 2028 owing to the rising popularity of smart home hubs that deploy multiple connectivity solutions, including Wi-Fi, Z-Wave, and 802.15.4 (ZigBee/Thread). The growing limitations of complex wired connections, specifically in consumer electronics have paved the path for several wireless technologies. The higher demand for Bluetooth smart home devices and the increasing utility of fitness and activity trackers will also result in lucrative market expansion.
However, the higher costs of wireless devices, such as smart electronic gadgets, and the rising number of data privacy & security issues pertaining to IoT (Internet of things) will act as roadblocks for the industry development.
Based on technology, the market share is expected to surge from the IoT segment due to the rising usage of smart homes, beacons, and wearables. Alongside integrating multiple devices into a wireless network to effectively manage and transfer data, IoT technology helps offer real-time guidance to workforces regarding inventories and customers. Rising application scope in applications, such as energy management and smart cities is a major trend impacting the segment growth. Increasing deployment of the technology by enterprises to come up with better decisions and actionable insights will additionally augment the industry expansion.
In terms of application, the automotive sector is likely to hold significant ground in the wireless connectivity IC market due to the emergence of Wi-Fi 6 networks and higher adoption of advanced electronics. The rising rate of vehicle connectivity has resulted in the increased deployment of wireless technologies, like IoT and Industry 4.0 for vehicle connectivity in order to offer road safety. The paradigm shift towards new automated as well as connected mobility solutions will also act as a significant contributor to the market growth.
The wireless connectivity IC market is anticipated to rapidly expand in Asia Pacific ascribing to the rising influx of 5G mobile networks and the surge in key electronics product manufacturers. The presence of strong connectivity bases and the growing number of smartphones are other impact rendering factors adding to the industry growth in the region. The large availability of labor force and cheap raw materials has led to considerable advancements in the electronic manufacturing sector. The rising number of R&D projects and government-led funds for wireless communications, mainly in Japan will also foster the regional market development.
The wireless connectivity IC market is highly competitive and comprises the presence of key players, such as Cypress Semiconductor (Infineon), Toshiba Corporation, STMicroelectronics, DNA technology, Texas Instruments, Silicon Labs, Renesas Electronics Corporation, NXP Semiconductor, Maxim Integrated, Microchip, Cisco Systems, Qualcomm, and MediaTek Inc.
Apart from being keen on technological innovations, these firms are placing consistent efforts on increased product and customer portfolio by emphasizing various marketing ventures, such as partnerships, acquisitions, and investments.
For instance, in October 2021, STMicroelectronics inked an agreement with Sierra Wireless to assist the STM32 microcontroller user community to leverage the latter’s flexible cellular IoT connectivity as well as edge-to-cloud solutions. The partnership helped solution developers in tackling diverse challenges pertaining to creating and deploying IoT solutions.
In response to the global COVID-19 pandemic, which cast a profoundly negative impact on the economic landscape, the wireless connectivity IC industry witnessed prolific growth. This can be accredited to the higher adoption of wireless communication technologies to monitor the spread of the virus, and facilitate healthcare automation, as well as virtual education and conferencing. Besides the thriving need for health automation, the rising incursion of 5G networks for efficient e-learning gave way for enhanced the industry growth amid the outbreak.