The natural progression of Wi-Fi into more capable protocols and new use cases will have a profound effect on the Wi-Fi chipset industry. Smaller players will try to make a land grab for market share while the established players will defend their turf. In the meantime, the shift to 802.11ac and to dual-band and tri-band solutions, also including 802.11ad, will bolster Wi-Fi chipset ASPs. This will change what would otherwise have been flattening revenue into continually growing revenue over the next five years.
This market has seen multiple driving forces that have created significant market shifts into 5 GHz and 60 GHz bands, from SISO to MIMO, the shift from 802.11n to 802.11ac and 802.11ad, dual- and tri-band configurations including 802.11ad, and also forecasts various MIMO configurations.