Preparing for Wi-Fi 7 and Beyond The demand for ultra-fast, low-latency connections is growing, fueled by emerging applications such as AR, VR, and IoT. As network infrastructure and supporting technologies catch up, Wi-Fi 7's adoption is expected to exceed that of previous Wi-Fi generations.

The Wi-Fi chipset market is on the verge of significant growth. Revenue in this sector is projected to increase by 12 per cent year-over-year (YoY) in 2025, driven by advancements in connectivity and the growing demand for high-speed internet across various applications, such as e-commerce, online learning, and media streaming. As per Counterpoint's latest projections in their report, this growth is underpinned by both technological innovation and rising consumer expectations for faster, more efficient connections. With the integration of advanced nanometer chip technology, Wi-Fi chipset manufacturers are developing solutions that promise to meet new connectivity needs. These advancements are setting the stage for the next generation of Wi-Fi, where new standards like Wi-Fi 6, Wi-Fi 6E, and the upcoming Wi-Fi 7 will redefine the market.

Wi-Fi 5, introduced in the 2010s, built upon the 802.11a standard, revolutionised wireless connectivity by enhancing seamless video streaming, efficient file backups, and robust network performance. Leveraging advancements from Wi-Fi 4, including orthogonal frequency-division multiplexing (OFDM) and 5 GHz band operation, Wi-Fi 5 optimised existing features.

This pivotal upgrade laid the groundwork for future wireless advancements, supporting the growing demands of network technology and setting the stage for next-generation wireless standards.

The Battle for Supremacy - Wi-Fi 5, 6, 6E, and 7

Currently, Wi-Fi 5 (802.11ac) remains the dominant standard, with a projected 56 per cent market share in 2024. Wi-Fi 5 supports data rates up to 6.9 Gbps and primarily operates on the 5 GHz band. However, newer standards like Wi-Fi 6, Wi-Fi 6E, and Wi-Fi 7 are quickly gaining traction, thanks to their enhanced capabilities.

Introduced in 2019 and 2021 respectively, Wi-Fi 6 (802.11ax) and Wi-Fi 6E provide higher data rates (up to 9.6 Gbps), reduced latency, and support for the 6 GHz band (for Wi-Fi 6E). These standards offer a balance between medium-range coverage and increased performance, making them suitable for high-density environments.

Expected to be widely adopted by 2025, Wi-Fi 7 (802.11be) will push data rates to a remarkable 46 Gbps, taking advantage of both the 6 GHz band and an expanded channel size of 320 MHz. This standard aims to deliver ultra-low latency, far-reaching connectivity, and robust support for applications that demand high-speed, reliable connections, such as augmented reality (AR), virtual reality (VR), and edge AI.

As per the report, Wi-Fi 6, 6E, and Wi-Fi 7 are expected to collectively hold 29 per cent of the market by the end of 2024. This share is anticipated to grow significantly, reaching 43 per cent by 2025.

Market Leaders

In the competitive Wi-Fi chipset market, Broadcom, Qualcomm, and MediaTek stand out as leading manufacturers, each with a distinct edge in next-generation Wi-Fi standards.

Projected to capture a 24 per cent market share in 2024, Broadcom currently leads the market. The company's emphasis on Wi-Fi 6 and 6E has proven successful, with these technologies expected to make up half of Broadcom's Wi-Fi revenue this year, rising to 80 per cent by 2025. This growth is largely driven by Broadcom's role in platform migrations and technology upgrades, as seen with devices like the upcoming iPhone models.

Qualcomm follows closely, holding 19 per cent of the market. Known for its FastConnect 7800 chipset, Qualcomm is preparing for a shift toward Wi-Fi 6E and Wi-Fi 7, which are projected to constitute 70 per cent of its Wi-Fi sales by 2025. Qualcomm's advancements aim to meet the demand for seamless, high-performance connectivity across smart devices.

With a 13 per cent market share, MediaTek's strength lies in its Wi-Fi 7 Filogic 380/880 chipsets, which have attracted partnerships with major brands such as ZTE, TP-Link, and Asus. MediaTek anticipates that Wi-Fi 6 and Wi-Fi 7 technologies will represent 58 per cent of its Wi-Fi revenue in 2024, growing to 88 per cent by 2025. This growth trajectory highlights MediaTek's ability to cater to the high-performance requirements of diverse connectivity solutions.

Technological Innovations Powering Wi-Fi's Evolution

Each standard's improvements in latency, range, and data handling capacity demonstrate the technological leaps that are being made, as manufacturers shift to smaller nanometer technology (from 40nm in Wi-Fi 5 to 6/7nm in Wi-Fi 7). These advancements enable the design of faster, more efficient chipsets that consume less power and provide broader coverage, meeting the demands of data-intensive applications.

Despite being in its early stages, Wi-Fi 7 is already anticipated to gain traction by late 2025. As network infrastructure and supporting technologies catch up, Wi-Fi 7's adoption is expected to exceed that of previous Wi-Fi generations. The demand for ultra-fast, low-latency connections is growing, fueled by emerging applications such as AR, VR, and IoT.