- 1 Wireless Connectivity: Overview
- 2 Increasing penetration of smart consumer devices are positively impacting the wireless connectivity market
- 3 The proliferation of IoT and connected devices driving the demand for more robust wireless connectivity solutions
- 4 Government initiatives towards digitalization
- 5 Future trend of wireless connectivity
Wireless Connectivity: Overview
In today’s world, with the rapid advancement in technologies, existing communication network infrastructure prove to be incapable of handling the predicted surge in the number of connected devices, as well as the data explosion around the globe. As a result, there is a massive demand for a more robust and reliable communication network infrastructure capable of handling this huge influx of data. Smart devices such as smartphones, wearables, etc. have become an integral part of an individual’s lifestyle in recent times, and thus the use of wireless communication over Wi-Fi & cellular has also rapidly increased. The bolstering demand of IoT connectivity, security, mobile data traffic, and expansion of mobile apps is leading to the integration of cloud architecture with the mobile networks to enhance the flexible delivery of services with high speed.
The businesses around the globe are transforming rapidly with increased digitization. Innovation in technology has created a business landscape of “Disrupt or be disrupted.” Therefore, the market players are adopting different strategies such as agility, low cost, rapid deployment, and other expansion strategies. Network security and data breaches are two significant concerns for the wireless connectivity industry.
Cellular M2M (Machine-to-Machine) provides the ability to connect several devices and applications by enabling fixed assets, such as electric meters, or mobile assets, such as fleet vehicles. The cellular M2M segment is composed of different communications products and development services, including cellular routers and gateways. The cellular routers provide connectivity for devices over a cellular data network. They can be used as a cost-effective alternative to a fixed phone line for primary or backup connectivity for remote sites and devices. The high growth of the internet industry, coupled with demand for mobility is fueling a rapid rise in the demand for cellular routers. The existing enterprise business model cannot afford to be on the traditional network; they need a network that allows the enterprises to take advantage of digital transformation with the flexibility required to support the dynamic enterprises.
Increasing penetration of smart consumer devices are positively impacting the wireless connectivity market
The consumer devices industry is witnessing immense growth in both developed and developing countries majorly due to advancements and smart features that are offered by the companies. In the current scenario, various consumer devices are used by consumers for a plethora of tasks. Consumer devices such as smartphones, tablets, PCs, TVs, washing machines, fridge, music players, etc. have become an integral part of consumers’ lives. All these devices are becoming smarter with the ongoing technological advancements and integration of IoT and AI. The market for consumer devices is continuously growing, owing to the fact that manufacturers are regularly coming up with advanced technologies and features in their devices and disposable income of consumers is also rising.
Furthermore, wearable devices account for one of the fastest-growing segments of the IoT connected device industry. Advanced enterprises consider wearables as an exceptional opportunity for mobile technology that can drive greater efficiency, improve workflow, and enhance communication. The technological developments and availability of smart features in consumer devices are expected to fuel the demand for consumer devices in the coming years. This is one of the key factors responsible for driving the wireless connectivity market.
The proliferation of IoT and connected devices driving the demand for more robust wireless connectivity solutions
The advent of IoT has enabled each device to be connected over the internet, and the rising adoption of IoT solutions globally, would result in a substantial increase in the number of connected devices. Also, validating to the above-mentioned point is the fact that the data traffic rate has grown at an annual rate of more than 65% over the last five years on a global level. Also, between 2018 and 2023, the data traffic is anticipated to grow at a compound annual growth rate of close to 40 percent (Source: The Insight Partners). This exponential growth in data traffic over the internet is outrightly attributed to the growing penetration of smartphones and other consumer devices that can be connected over the internet through IoT.
It is estimated that each individual will have close to a dozen number of devices that would be connected over the internet by 2020. A huge population of India and China are further contributing to the growing penetration of smartphones and other consumer devices that would be potentially connected in the coming future.
Government initiatives towards digitalization
Additionally, various government initiatives towards digitalization of economies in these countries are leading to the exponential growth of data traffic over the internet. Brazil, Uruguay, Argentina, Chile, Colombia, UAE, Saudi Arabia, South Africa, Vietnam, and Singapore are other major countries embracing the path of digitalization and resulting in a huge influx of data over the internet. This digitization revolution in developing countries demands robust and reliable wireless connectivity solutions, Cellular, Wi-Fi, and Bluetooth are some of the fastest growing wireless connectivity technologies in these countries. This trend is contributing immensely towards the growth of the wireless connectivity market in the Asia Pacific region.
Future trend of wireless connectivity
As soon as 5G was announced, and its potential benefits were showcased at global level, numerous countries had put their hand forward in ensuring a healthy evolution of this technology. A large number of global players have also ventured into the research and development of 5G technology globally. Some of the leading vendors, carriers, and stakeholders in the 5G technology market include Qualcomm, Samsung Corporation, Ericsson, Nokia Networks, Huawei Telecommunications Inc. and ZTE Corporation who have formed partnerships with other stakeholders across the globe in funding the research & development of the 5G technology.
5G is expected to be a technological evolution that will have the potential to bridge consumers’ physical, virtual, and social worlds. The associated transformation into the digital world, will bring a plethora of opportunities for all the stakeholders involved. Sensing these business opportunities, Governments of various developing economies across the globe have realized the potential of 5G and the impact that this technology could have on the GDP. Government and private sector backing coupled with large population base in developing countries will help accelerate return on infrastructure investment. All these developments are pointing towards a bright future for 5G technology around the world, which will, in turn, complement the growth of the wireless connectivity market globally.
Kunal is currently working as Analyst in the ICT domain of The Insight Partners, a premier market research and consulting firm. He has completed MBA in Marketing Management and graduation in Electronics & Communication Engineering. He has rich experience in multiple segments including Business Research & Consulting, Data Mining, Report Writing, Market Modelling, and Strategy Formulation.