by The GCC WIFI chipset market comprises of wireless connectivity ICs used in wireless devices and equipment for Wi-Fi standards such as 802.11n and 802.11ac. GCC countries have witnessed significant growth in the adoption of smart home devices like smart TVs, smart thermostats, smart refrigerators backed by rapid development of smart cities in the region. The growing penetration of connected devices and increasing focus on IoT deployment is driving tremendous demand for WiFi chipsets in the GCC.
The Global GCC WIFI Chipset Market is estimated to be valued at US$ 23.62 Mn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the GCC WIFI Chipset Market Size are Nestlé S.A., Groupe Danone, PT Kalbe Farma Tbk, PT Indofood Sukses Makmur, Indofood CBP, Mirota KSM, Nutricia Indonesia Sejahtera, Sari Husada, Mead Johnson Indonesia, and PT Frisian Flag Indonesia. Key players are focused on developing advanced WiFi chipsets with upgraded features to meet the growing demand for high speed connectivity and integration of new wireless technologies.
The GCC region has witnessed tremendous growth in smartphone adoption and proliferation of smart home devices in recent years. This has fueled rapid growth in the demand for WiFi chipsets across consumer electronics, networking devices, and IoT applications. Continuous technological upgrades and new product launches accompanied by affordable pricing is further propelling the demand for WiFi connectivity solutions.
Major global WiFi chipset manufacturers have been expanding their presence across GCC countries to capitalize on the lucrative opportunities. Strategic partnerships with local players and establishment of manufacturing units are some key strategies adopted by players to strengthen their foothold. Ongoing infrastructure projects around smart cities and increasing fiber optic broadband penetration will further accelerate the adoption of WiFi-enabled devices and networks.
Market key trends
One of the key trends gaining traction in the GCC WIFI chipset market is the rising focus on developing multi-gigabit WiFi solutions to support high bandwidth applications and emerging technologies such as 8K/VR streaming. Major players have been designing Wifi6E chipsets integrated with 6GHz spectrum to provide 3 times more bandwidth than existing WiFi solutions to meet future connectivity needs. This emerging trend of high-speed WiFi is expected to significantly drive the demand for next-gen WiFi6E chipsets in the region in the coming years.
Porter’s Analysis
Threat of new entrants: New companies entering the GCC Wifi chipset market face a moderate threat as setting up the production of chips requires huge capital investments and specialized technical expertise.
Bargaining power of buyers: Individual buyers have low bargaining power due to the presence of multiple established players providing Wifi chipsets. However, large organizations can negotiate discounted bulk buying deals.
Bargaining power of suppliers: Chipset manufacturers hold moderate power over players in this market as they control essential components and technologies required for Wifi chip production.
Threat of new substitutes: Threat from newer substitutes is low as WiFi technology has few direct substitutes that provide similar levels of wireless connectivity for devices.
Competitive rivalry: Though competition is high between major vendors, the market remains consolidated with a few large players controlling the majority share. Players must continuously invest in R&D to ensure compatibility of their chips with emerging connectivity standards.
Geographical regions
In terms of value, the GCC Wifi chipset market is currently concentrated in Saudi Arabia due to high infrastructure and network development projects underway in the kingdom. Other Gulf countries like the UAE and Kuwait also represent major markets.
The fastest growing region for this market during the forecast period is expected to be Egypt. This is attributed to the Egyptian government’s initiatives to promote digitization and strengthen national broadband infrastructure across the country. growing consumer demand for seamless connectivity is another key factor driving chipset demand higher in Egypt.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
