According to a new report published by Allied Market Research, titled, “Wireless Connectivity Technology Market By Technology, and Application: Opportunity Analysis and Industry Forecast, 2020–2027”, the global wireless connectivity technology market size was valued at $53.17 billion in 2019, and is projected to reach $150.38 billion by 2027, registering a CAGR of 13.0% from 2020 to 2027. North America accounted for the highest market share in 2019, followed by Asia-Pacific and Europe.
The wireless connectivity technology market is currently in its growth stage and is expected to register substantial growth in the near future, owing to high investment in R&D activities by market players and increase in focus toward Internet of Things (IoT) and 5G technology. Other factors that drive the market growth include advancements in wireless technology and surge in IoT technology for hyper-connectivity between devices in smart-infrastructure is expected to increase the demand for wireless networks in smart lighting.
Increase in demand for wireless communication is majorly driving the growth of the wireless connectivity technology market globally. Deployment of wireless connectivity in the telecommunication sector due to increase in demand for high bandwidth, internet speed in electronic devices such as smart phones and wearable devices for media exchange, video streaming, conferencing, and online gaming, enables high security transmission in communication.
Moreover, rise in need of safety in high risk areas, growth in transition from analog cameras to IP cameras, and integration of Internet of Things boosts the demand for imaging network devices. Furthermore, the industrial and aerospace & defense sectors contribute toward the market growth due to deploying wireless connectivity technology in industries for building automation and track the people from indoor and outdoor and for communication over long distance by radar and satellite systems.
Increase in trends toward the development of smart cities, smart infrastructure, and other smart devices is expected to offer lucrative opportunities for market expansion, which further propels the demand for unmanned vehicles in the transportation and automotive sectors. This is expected to create lucrative opportunities for the wireless connectivity technology market growth, owing to shift in preference of consumers from normal cars to smart driver’s assistant cars, which help in GPS navigation, blind spot detection, and avoids collision system.
However, factors such as high investment cost, installation cost, and lack of professional expertise, & environmental concern such as 5G hamper the market growth. The wireless connectivity technology market in Asia-Pacific is expected to grow at the highest rate during the forecast period, owing to presence of the telecommunication industry. Moreover, rise in demand for 5G technologies in developing nations boosts the demand for medical imaging devices used for medical diagnosis. However, rise in competition in developing economies such as India is anticipated to influence the growth of the market.
Factors such as demand for wireless networks in development of smart infrastructure, growth in adoption of AI assistants, and integration of IoT in surveillance cameras drive the wireless connectivity technology market. However, high installation and maintenance cost in wireless network system hampers the market growth. Furthermore, emergence of IoT & AI technology for smart lightning and growth in development in smart city projects, especially in APAC, is expected to further increase the demand for wireless connectivity technology.
Despite the economic slowdowns, 5G demand in several industries has been accelerating. Online and essential retail, manufacturing, and healthcare (including physical, mental, and elderly care) are expected to utilize 5G technologies. With the enhanced capabilities of 5G, particularly private 5G networks for manufacturing and healthcare, the demand for 5G infrastructure is expected to rise, which may also create lucrative opportunities for the market globally.
By region, the wireless connectivity technology market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The wireless connectivity technology market analysis had identified that North America contributed maximum revenue in 2019, owing to rise in adoption of smartphones and smart wearables coupled with increased investment in the government also boost the growth of the market. The wireless connectivity technology market share in Asia-Pacific is expected to grow at a faster rate as compared to other regions.
Key Findings of the Study
- In 2019, the Wi-Fi segment accounted for the maximum revenue and is projected to grow at a faster rate during the forecast period.
- The healthcare segment witness the highest growth rate during the forecast period.
- China was the major shareholder in the Asia-Pacific region, accounting for approximately 45.0% share in 2019.
The key players profiled in the report include Qualcomm Incorporated, Intel Corporation, NXP Semiconductors N.V., Texas Instruments Inc., STMicroelectronics N.V., Broadcom, Panasonic Corporation, Infineon Technologies AG, Renesas Electronics, and MediaTek Inc. These Market players have adopted various strategies such as product launch, collaboration, partnership, agreement, and acquisition to expand their foothold in the wireless connectivity technology industry.