Connectivity enabling technology: Key market research findings
- The Americas dominate the global ZigBee and Wi-Fi segments of the market
- Wi-Fi technology accounts for a majority of the market’s revenue
- Key vendors – Atmel, Broadcom, Digi International, Freescale Semiconductor, and Fihonest Communication
Technavio’s market research analysts predict the global market for connectivity enabling technology to grow at a CAGR of around 10% in terms of unit shipments between 2016 and 2020. The growth of the market is spurred by the growing need for low-energy wireless technologies. Wireless technologies consume a lot of energy on battery-powered devices located throughout the smart home. As a result, consumers and service providers are opting for alternative wireless technologies, such as ZigBee, to improve energy efficiency. Unlike Bluetooth and Wi-Fi, ZigBee has a lower-energy consumption rate and longer communication range. During 2015, Americas dominated the global market for ZigBee and Wi-Fi technologies. However, our analysts have also observed that the global market for Bluetooth technology was dominated by APAC and is expected to showcase further growth in the coming years.
The new market research report from Technavio presents a breakdown and analysis of the connectivity enabling technology segments based on the technology.
“The growing inclination towards smart homes among consumers influences the adoption of connectivity enabling technology. Many homes in developed nations are being converted into smart homes, wherein consumer electronic devices, media and entertainment gadgets, and other smart electronics are connected to the home network and can interact with each other. With advantages such as low power consumption, security, and interoperability, ZigBee is being recognized as one of the most reliable and cost-effective technologies for connecting the world of smart homes by industry participants,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
By 2020, the Wi-Fi technology segment will continue its dominance over the global connectivity enabling technology market by accounting for around 69% of the overall market revenue. Wi-Fi is an essential component in the WLAN devices, as it enables wireless connectivity to other devices such as smartphones, tablets, and smart meters. Wi-Fi enabled devices such as smartphones and tablets are designed to fulfill one-to-one connectivity.
The key vendors in the global connectivity enabling technology market include Atmel, Broadcom, Digi International, Freescale Semiconductor, and Fihonest Communication. The market appears to be fragmented due to the presence of several vendors including OEMs and module manufacturers. New large vendors enter the market through acquisitions, while others develop their core capabilities. The market is highly competitive, and vendors mainly compete on the basis of four major factors such as price, innovation, quality, and performance. Advancements in technology will lead to the introduction of new products in the market, which will further intensify the competitive environment of the market. To remain competitive and to increase or retain their market shares, vendors have to distinguish their product and service offerings through a clear and unique value proposition.
A more detailed analysis is available in the Technavio report, Global Connectivity Enabling Technology Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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