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802.15.4 Chipset Market

Market Study on 802.15.4 Chipset: PMR Foresees Various Opportunities Arising in the Upcoming Years, Analysing the Rapid Expansion of Industrial Automation, and Growing Application in Healthcare Industry

A Detailed Analysis of the 802.15.4 Chipset Market Based on Rising Adoption of IoT-Enabled Devices, Demand for Low-Power Wireless Communication Solutions, and Expanding Applications in Smart Homes

802.15.4 Chipset Market

The global 802.15.4 chipset market is forecast to expand at a CAGR of 6.6% and thereby increase from an expected value of US$34.27 Bn in 2024, to US$53.61 Bn by the end of 2031.

Attributes

Key Insights

802.15.4 Chipset Market Size (2024E)

US$34.27 Bn

Projected Market Value (2031F)

US$53.61 Bn

Global Market Growth Rate (CAGR 2024 to 2031)

6.6%

Historical Market Growth Rate (CAGR 2018 to 2024)

5.6%

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Market Introduction and Definition

The introduction of the 802.15.4 chipset market began in 2003 with the release of the IEEE 802.15.4 standard. This standard specifically targeted Low-Rate Wireless Personal Area Networks (LR-WPANs), aiming to provide low-power consumption and a decent range for short-distance wireless communication. It operates in the unlicensed Industrial, Scientific, and Medical (ISM) frequency bands, allowing for deployment without requiring additional licenses.

The market gained momentum in the late 2000s, fueled by the growing popularity of Zigbee and Wireless Sensor Networks (WSNs). These technologies heavily relied on 802.15.4 chipsets, enabling the development of various applications in home and industrial automation, sensor data collection, and more.

Some of the early players in this market included Texas Instruments, Freescale Semiconductor (now NXP), and STMicroelectronics. However, the range of chipsets offered was limited in the initial stages. As the market matured, more companies entered the space, and the variety of chipsets available has grown significantly.

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Market Growth Drivers

Surging IoT Landscape

The exponential growth of the Internet of Things (IoT) landscape is a major driver propelling the 802.15.4 chipset market. As billions of devices are being interconnected, the need for low-power, short-range communication solutions like 802.15.4 chipsets becomes increasingly crucial.

These chipsets enable efficient data exchange between various smart devices within a limited range, making them ideal for applications like smart home automation, wearables, and industrial sensor networks. Additionally, the low-power consumption of 802.15.4 chipsets ensures extended battery life for these devices, reducing the need for frequent replacements and contributing to a more sustainable IoT ecosystem.

Smart City and Building Automation

The increasing adoption of smart city and building automation solutions is another key driver fueling the 802.15.4 chipset market. These solutions integrate various sensors and devices to gather data on factors like energy consumption, traffic flow, and environmental conditions.

802.15.4 chipsets play a vital role in facilitating low-power communication between these distributed devices, enabling real-time data collection and analysis. This data can then be used to optimize energy usage, improve traffic management, or enhance public safety. Moreover, 802.15.4 chipsets allow for cost-effective deployment of smart building solutions, leading to improved building automation, increased occupant comfort, and reduced operational costs.

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Market Restraints

Competition from Alternative Technologies

Despite its advantages, the 802.15.4 chipset market faces competition from other low-power wireless communication technologies, potentially hindering its growth. These technologies, such as Bluetooth Low Energy (BLE) and Wi-Fi HaLow, offer similar functionalities and are constantly evolving to improve their capabilities.

BLE, for instance, boasts wider adoption in consumer electronics, while Wi-Fi HaLow provides longer range and higher data rates. This competition compels manufacturers to continuously improve the performance and cost-effectiveness of 802.15.4 chipsets to maintain market share.

A Looming Shadow over Adoption

Security concerns surrounding 802.15.4 chipsets present another significant growth restraint. These chipsets are designed for low power consumption and short-range communication, which can sometimes come at the expense of robust security features. The limited processing power and resources can make them vulnerable to various security threats, such as data breaches, unauthorized access, and eavesdropping.

The vulnerability raises concerns for applications handling sensitive data, potentially discouraging wider adoption in certain sectors like healthcare and industrial automation. Addressing these concerns through enhanced security protocols and chip design improvements will be crucial for continued market growth.

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Opportunities

Rapid Expansion of IIoT

The prolific rise in Industrial Internet of Things (IIoT) adoption across manufacturing plants, warehouses, and other industrial facilities represent an explosive opportunity for 802.15.4 chipset vendors. As companies aim to collect and analyse data from industrial equipment like sensors to optimize operational efficiency, the utility of 802.15.4 connectivity solutions becomes paramount.

With its superior range and stability in noisy environments compared to other LPWANs, 802.15.4 standard has emerged as an ideal communication infrastructure for IIoT. This creates massive untapped potential for companies to provide customized chipsets and modules catered for rapidly growing industrial automation applications.

Soaring Traction in Smart Cities

Another major opportunity trigger for the 802.15.4 chipset market stems from increasing integration in smart city applications such as intelligent traffic monitoring, parking guidance systems, urban transportation, and public safety surveillance. Large-scale government initiatives to upgrade city infrastructure in developing economies utilizing IoT and modern connectivity solutions will further the adoption of 802.15.4 chipsets.

Additionally, enhanced features like green power management and IPv6 capabilities make the latest 802.15.4 standard ideally poised to address smart city demands like low-maintenance networks, higher node capacity, robust security - promising multi-fold increase in chipset adoption over the coming decade.

Analyst's Overview

The short-term outlook for the 802.15.4 chipset market is expected to be one of stability and consolidation. The market is projected to experience a steady growth rate, driven by continuous demand from established applications like smart home automation and industrial sensor networks. However, factors like ongoing competition from alternative technologies and lingering security concerns might pose challenges to explosive growth in the immediate term.

One key factor influencing the short-term outlook is the ongoing development of the 802.15.4e standard. This new standard promises improved data rates, longer range, and better security features compared to the existing 802.15.4 standard. While the adoption of this new standard is still in its early stages, it holds the potential to boost the market in the upcoming years, offering more competitive solutions and attracting new applications.

The long-term outlook for the 802.15.4 chipset market paints a promising picture, fueled by continued innovation and wider adoption across various sectors. The emergence of Industry 4.0, smart cities, and the ever-evolving IoT landscape are expected to create significant demand for low-power, reliable communication solutions, favoring the growth of the 802.15.4 market.

Furthermore, the development of interoperable standards and a thriving ecosystem will play a crucial role in unlocking the market's full potential. This will encourage wider adoption, attract new players, and foster continuous innovation, leading to improved chipsets with enhanced capabilities and features. As existing applications mature and new ones emerge, the long-term growth trajectory of the 802.15.4 chipset market appears positive and promising.

Supply-side Dynamics

The 802.15.4 chipset market is currently witnessing accelerated mergers and acquisitions activity. Large semiconductor companies are aggressively acquiring smaller chip vendors to expand their IoT chips portfolio with LR-WPAN solutions catering to low-power connectivity demands. At the same time, veteran players like NXP Semiconductors and Silicon Labs are doubling down investments in their 802.15.4 offerings adding advanced features to deliver performance upgrades.

Owing to intensifying competition, the top 5 manufacturers account for over 60% of global market share presently. This consolidation and focus on next-gen feature integration is expanding the capabilities as well as availability of 802.15.4 chipsets - creating a push in the supply side.

On the demand front, rising standardization in conjunction with exponential increase in IoT and IIoT deployments requiring long-range, ultra-low power wireless communication is fueling uptake across industries. Overall, the supply acceleration is likely to have a multiplier effect on 802.15.4 adoption stimulating more large scale device integration and rollouts through the next decade.

Market Segmentation

Which is the Dominant Chipset Type Category?

The multi-protocol 802.15.4 chipset segment is poised to account for over 75% market share by 2030, given its ability to support multiple wireless standards on the same chip. This eliminates the need for additional communication modules, reduces complexity, and enables versatility across use cases - making multi-protocol chips an attractive mainstream option for IoT device manufacturers. Their rising popularity within industrial sensors, consumer wearables, asset tags and medical devices will present a high-growth opportunity during the forecast period.

What will be the Primary Application Segment?

On the application front, industrial automation will contribute close to 50% of global revenue share by 2030. The paramount importance of real-time asset monitoring and predictive maintenance for operational efficiency is accelerating deployments across factories and warehouses. Furthermore, attributes like resilience in harsh environments and stable wireless performance reinforce the value proposition of 802.15.4 chipsets within the industrial landscape - thereby catalyzing uptake.

Top Regional Markets

How is the Smart City Initiative Uplifting Market Prospects in Asia Pacific?

In 2020, the Asia Pacific region emerged as the epicenter of growth, capturing a substantial 30.85% share of the 802.15.4 chipset market. This dominance is attributed to the burgeoning adoption of smart city initiatives and home automation trends sweeping across nations like China, India, Japan, and Korea.

The region's relentless pursuit of urban development and digital transformation fuels the demand for 802.15.4-based chipsets, with notable initiatives such as the integration of Wi-SUN technology into millions of electricity meters in Japan and the ambitious Smart Cities Mission in India, which has allocated a staggering 182,696 crore rupees for urban development projects.

The electronics industry in APAC remains at the forefront of innovation, continuously rolling out essential components like chipsets and modules to meet the escalating demands of IoT applications across households, buildings, and industrial sectors.

Leveraging the low-data rate capabilities of 802.15.4 chipsets, these solutions significantly reduce power consumption, aligning perfectly with the region's emphasis on sustainability and efficiency. Consequently, the APAC region propels the growth of the 802.15.4 chipset market, showcasing a compelling narrative of innovation, adoption, and expansion.

Competitive Intelligence and Business Strategy

The 802.15.4 chipset space is currently dominated by large semiconductor powerhouses including Texas Instruments, NXP Semiconductors, STMicroelectronics, Analog Devices, and Silicon Labs which collectively account for over 60% market share.

These leaders are focused on leveraging strategic acquisitions, increased R&D, and new product innovations as competitive advantage levers to rapidly scale production capacities and expand market reach. Their key strengths enabling market leadership include unparalleled brand recognition, established client networks, diverse product portfolios catering to an array of industrial and consumer applications, and early investments in developing competencies around emerging wireless standards.

Going forward, market consolidation is expected to further intensify as niche technology players are acquired by largervendors vying for next-generation IP and technical expertise. Though the competitive intensity will remain high, it will ultimately expand the capabilities and applicability of 802.15.4 chipset offerings - fostering exponential adoption across transformative domains like 5G, edge intelligence and smart infrastructure over the long term.

Key Recent Developments

New Product Launch:

In May 2022, Silicon Labs launched the EFR32FG23 Series 2 wireless SoC. It is an ultra-low power multi-protocol wireless geolocation SoC supporting direction finding, Long Range and Bluetooth 5.3 connectivity.

Impact on Market: The EFR32FG23 strengthens Silicon Labs' position in high precision, low power location services. Its advanced feature integration suits asset management, smart home automation and indoor tracking use cases. This new flagship offering future-proofs IoT device design while enabling faster time-to-market.

In June 2022, Analog Devices launched the SmartEdge platform featuring a range of Software Defined Radio SOCs. These combine waveform generation, signal processing and cybersecurity protocols tailored for industrial IoT.

Impact on Market: The customizable SmartEdge solutions reinforce Analog Devices’ capabilities around industrial wireless connectivity. They address the emerging needs of manufacturing automation, while simplifying deployment and enhancing data protection. This strengthens its competitive positioning in the IIoT landscape through differentiated chip offerings.

802.15.4 Chipset Market Report Scope:

Attribute

Details

Forecast Period

2024 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa

Key Market Segments Covered

  • Type
  • Application
  • End User
  • Region

Key Companies Profiled

  • ON Semiconductor Corporation
  • STMicroelectronics NV
  • NXP Semiconductors NV
  • Panasonic Corporation
  • Qualcomm Inc.
  • Qorvo Inc.
  • Marvell International Ltd
  • Nordic Semiconductors ASA
  • Microchip Technology Inc.
  • Silicon Laboratories Inc.
  • Texas Instruments Inc.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

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802.15.4 Chipset Market Research Segmentation:

By Type:

  • Single-protocol 802.15.4 Chipsets
  • Multi-protocol Chipsets
  • Others

By Application:

  • Smart Home & Building
  • Industrial Automation
  • Smart Meeting
  • Smart City
  • Others

By End User

  • Oil and Gas
  • Industrial manufacturers
  • Retail services provider
  • Telecom services provider

Key Geographical Regions

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa

- Companies Covered in This Report -

- Frequently Asked Questions -

The market is forecasted to expand at a CAGR of 6.6% over the projected period.

In 2023, the 802.15.4 Chipset market reached a valuation of US$53.6 Bn.

The Asia Pacific emerged as the leader in market share in 2024.

Some of the major growth drivers for this market include rapid proliferation of IoT-enabled devices, developments in the world of smart homes, and widening applications in healthcare industry.

Key manufacturers in the market include ON Semiconductor Corporation, STMicroelectronics NV, NXP Semiconductors NV, Panasonic Corporation, Qualcomm Inc., Qorvo Inc., Marvell International Ltd, Nordic Semiconductors ASA, Microchip Technology Inc., Silicon Laboratories Inc., and Texas Instruments Inc.

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