Wireless Connectivity IC Market
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The global wireless connectivity IC market generated significant revenues in 2024 and is expected to grow at a decent CAGR during 2025-2034, due to the increasing demand for smart and connected devices across industries. As per the Digital 2024 study, around 82 % of the global population that is 6.97 billion people owned a smartphone. Wireless connectivity ICs are essential components for communication in today's electronics and devices connecting to wireless networks. Wireless connectivity ICs provide the necessary Wi-Fi, Bluetooth, Zigbee, and cellular (4G, 5G, LTE) protocols to connect a device to a wireless network.
The rapid growth of the market trajectory is tied to the continued evolution of technologies such as the Internet of Things (IoT), smart home technologies, connected vehicles, and wearables. There is increased consumer dependence on high-speed, reliable wireless data transmission whether in personal or professional environments. Also, improvements in low-power IC designs and advances in chip miniaturization have led to more efficient and versatile chips that can be deployed into a growing number of applications.
The chips are the main frame for moving data in real-time across digital ecosystems, allowing devices to work together seamlessly with many varieties of protocols and platforms. The utilization of wireless ICs (integrated circuits), for use in consumer electronics, industrial automation, automotive connectivity, and healthcare solutions, means that wireless ICs are quickly becoming necessary in many technology markets. Wireless tools needing low latency and efficient use will continue to increase the innovation of IC designs. Many companies emphasize priority by getting smaller (form factors) and greater capability (processing).
In comparison, there is a ceiling for growth in the wireless ICs market. However, Sustainability in the market will depend on addressing some of the issues around global semiconductor shortages, rising costs of fabrication, and regulatory hurdles around higher cybersecurity measures. Since components are affected by commodity price fluctuations, it is important for companies to keep a close eye on trade relationships across the Pacific, especially with Asian countries. Trade and laws will also affect overall supply chain stability. Moreover, integration complexity is apparent with cross-platform compatibility.
The wireless connectivity integrated circuit (IC) industry is being reshaped by several emerging trends that highlight its importance in the development of digital technologies. A prominent trend is the combination of multiple wireless protocols in a single IC, creating opportunities for increased interoperability and operational ease for the original equipment manufacturer (OEM). This trend is particularly applicable to Internet of Things (IoT) applications and enables OEMs to create miniature, multifunction solutions within space and power constraints.
Another trend is the acceleration of energy-efficient or ultra-low-power wireless ICs for battery-powered IoT or wearable devices. As sustainability and device life become increasingly emphasized, chip designers are focusing on power consumption clearly or completely lowering performance. The normalized use of Wi-Fi 6/6E and Wi-Fi 7 standards improved enterprise and smart home data throughput and requires new IC capabilities to reduce latency. Alongside, the desire for software-defined wireless is also gaining traction, whereby ICs operate in a flexible manner due to reprogrammable firmware capabilities and extend across multiple use case regimes.
The automotive application segment in the wireless connectivity IC industry is forecast to experience substantial growth until 2034, due to the electrification of vehicles, development of advanced driver-assistance systems (ADAS), and increased demand for in-car connectivity and infotainment systems. Automakers are increasingly using wireless connectivity ICs as a means of enabling vehicle-to-everything (V2X) communication to improve driver safety and offer seamless digital experiences. Applications include everything from remote diagnostics and over-the-air (OTA) software updates, improvements to real-time traffic information, and predictive maintenance alerts.
Electric vehicles (EVs) become an integral part of automotive portfolios evidenced by the rising demand for V2X integration with connected charging infrastructure and energy management systems. Increasing demand for wireless ICs is also noted in autonomous driving applications where high-speed data transfer is crucial for top-performance sensor fusion for real-time decision-making processes. Automotive manufacturers began to use wireless IC technologies instead of traditional wired systems, which will enhance energy efficiency and vehicle weight by eliminating extensive wiring.
The IoT technology segment in the wireless connectivity IC market held sizeable growth in 2024 and is anticipated to present strong growth through 2034. With companies digitizing their operations and consumers deploying smart devices, wireless ICs play a central role in establishing their connectivity infrastructure. IoT devices are reliant on small, power-optimized chips that support multiple wireless protocols simultaneously, including Bluetooth Low Energy (BLE), Zigbee, Wi-Fi 6, and NB-IoT, and IoT uses vary widely from industrial automation to smart agriculture and remote patient monitoring for healthcare.
Wireless ICs enable industrial-connected devices to monitor and conduct preventive maintenance on equipment remotely while also enabling Machine-to-machine (M2M) communication for a single organization and a purpose. This offers the opportunity for improved efficiencies and reduced era operational costs. Smart home devices include smart thermostats, connected appliances, fitness and wellness trackers, and security systems.
Asia Pacific wireless connectivity IC market held the largest share in 2024, driven by the development of semiconductor fabrication capabilities and electronic component assembly. Japan drives the regional power dynamics that shape the industry globally. West made several observations regarding the region’s overall strengths in electronics manufacturing, well-developed supply chain ecosystems, and many government-supported innovation initiatives helping drive technology development, as key components to its success in establishing meaningful market share across ICs.
Major semiconductor players located in the Asia-Pacific region are investing heavily in R&D to develop next-generation chipsets supporting multiple wireless protocols, lower power requirements, and high integration for limited designs. The overall consumer electronics market in China, India, and other key Asian markets is growing and various government-supported initiatives are helping drive demand for smart cities and industrial digitization. Local suppliers are entering into meaningful partnerships with leading global technology companies to co-develop wireless IC-based chipsets supporting 5G, IoT, and automotive applications.
Major players involved in the wireless connectivity IC industry include:
Companies either operating or trading within the wireless connectivity IC sector are making several coordinated efforts to strategically position themselves in the market, develop new technologies, and work towards solutions to meet changing customer requirements. One of the primary efforts relates to heavy investment in R&D to new chips that will allow multiple wireless protocols (i.e. Wi-Fi, Bluetooth, Zigbee, and 5G) to be supplied with improved power efficiency and physical footprint so manufacturers can ultimately provide tiny, high-power chips to the growing IoT, automotive, and consumer electronics markets.
Another key strategy is strategic partnerships/collaboration with technology companies, OEMs, and cloud service providers to co-develop solutions for smart devices, industrial automation, and connected vehicles. Vertical integration is producing the organization functions from design to manufacturing, with greater quality control, reduction of costs, and reduction of time.