Wireless connectivity is a cornerstone of consumer electronics, shaping everything from the smart home to the Internet of Things (IoT). For companies that sell the chipsets found in wireless devices, it is essential to gauge consumer demand and identify the hottest innovations.
Leveraging ABI Research’s Wireless Connectivity Technology Segmentation and Addressable Markets report, here are five wireless trends for chipset vendors to watch in 2025 and beyond.
1. Wireless Technology Demand Is Rebounding, but Tariffs Cause Uncertainty
Demand for wireless technologies has increased between 2H 2024 and into early 2025. This comes after many wireless chipset vendors experienced weak sales performances in 2023 and 1H 2024, driven by global economic uncertainty. Inventory challenges have largely been addressed and macroeconomic conditions have improved. As a result, wireless chipset companies report stronger revenue growth. For example, Nordic Semiconductor reports an 18% sales increase over its 3Q 2023 performance.
Despite strong orders for wireless chipsets in 1Q and 2Q, we believe sales will potentially dwindle due to the new U.S. tariffs. We are awaiting more data to come in and will be continually adjusting expectations.
2. Wireless Chipset Vendors Need to Support New Device Types
New wireless connectivity segments are emerging, presenting lucrative revenue opportunities for chipset vendors. ABI Research anticipates slow and steady growth or even a decline for traditional devices that use Wi-Fi and Bluetooth®. This includes smartphones, Personal Computers (PCs), tablets, and other consumer electronics that have been reliable segments in years past. To remain competitive, wireless chipset suppliers must diversify their portfolios to support high-growth technologies. The IoT and smart home are two wireless technology areas for vendors to focus on, as device shipments in these segments are growing at the fastest rates. Notable applications that wireless connectivity can address include healthcare monitoring, smart appliances, home automation, energy management, and Electronic Shelf Labels (ESLs).
3. Ultra-Wideband Is Gaining Prominence in Wireless Devices
Backed by recent standardizations, Ultra-Wideband (UWB) connectivity is gaining traction in wireless. UWB connectivity is championed by device manufacturing giants like Apple and Samsung. Many wireless chipset vendors have developed or are developing UWB-supported silicon. Qualcomm’s FastConnect 7900 chipset is a standout example, supporting Artificial Intelligence (AI) features, Wi-Fi 7, Bluetooth®, and UWB.
Besides Qualcomm, other wireless chipset companies supporting UWB technology include Infineon, STMicroelectronics, NXP, and Qorvo. New players, such as Chipsbank, GiantSemi, MKSemi, New Ruixin Technology, and Ultraception, also support UWB connectivity for wireless devices and will challenge incumbent vendors. This strong competitive landscape will foster accelerated innovation, such as unlocking novel use cases for UWB. NXP’s Trimension solution embodies this innovative outlook, supporting hands-free ticketing for transit riders in Shenzhen.
4. Wi-Fi 7 Will Dominate Headlines in 2025
The year 2025 marks a major inflection point for Wi-Fi 7 adoption, with shipments expected to see a healthy jump compared to 2024. Wi-Fi 7 momentum is being driven by Wi-Fi CERTIFIED 77™ certification and strong backing from chipset vendors and network equipment suppliers. Helping build the momentum, the Wi-Fi Alliance has certified about 200 Wi-Fi 7 products.
Everything from an Access Point (AP) to a gaming console is now Wi-Fi 7-ready. A slew of product announcements in 2024 set up 2025 to be another big year for Wi-Fi 7, especially as much of the wireless market plans to shift to new and improved connectivity solutions. The home entertainment arena will be one wireless technology segment to keep an eye on in 2025. 4K TVs and gaming consoles are rapidly receiving Wi-Fi 7 support from chipset vendors and wireless router Original Equipment Manufacturers (OEMs).
At the Consumer Electronics Show (CES) 2025, notable Wi-Fi 7 product announcements were made, such as Intel’s Core Ultra Series 2, TP-Link’s mesh solution, and ASUS’s Wi-Fi 7 gaming router. ABI Research anticipates that more Wi-Fi 7 innovations will trickle out over the rest of 2025, encompassing automotive, entertainment, Personal Computer (PC), and other consumer product categories.
5. Bluetooth® Low Energy Audio Requires More Support from the Wireless Ecosystem
Bluetooth® Low Energy (LE) Audio is set to transform wireless listening experiences, offering superior sound quality, lower latency, and multi-device streaming capabilities. It is being supported by leading chipset vendors, as well as device OEMs like Microsoft and Samsung. However, Bluetooth® LE Audio faces challenges in terms of software development and Operating System (OS) compatibility.
While Windows 11 and Android 13 support LE Audio, the same cannot be said about Apple’s iOS. Apple is one of the most influential brands in consumer electronics, making its lack of Bluetooth® LE Audio support worrisome for the wider adoption of LE Audio. The complete transition to LE Audio-only devices will be a gradual process. Despite significant progress in recent years, such as the Bluetooth Special Interest Group (SIG) qualification of over 700 products, broader ecosystem support is needed. Until this happens, ABI Research expects most wireless chipset vendors to continue offering dual-mode Bluetooth® audio solutions, allowing users to leverage Classic Mode or LE Audio.
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