Product Code: 69122
The wireless connectivity market is expected to register a CAGR of 12.66% during the forecast period. The proliferation of the market is to be driven by the growing demand for consumer electronic devices. Further, the adoption of advanced technologies, like AI, IoT, AR, and VR, is also expected to remain high in many end-user industry verticals. The creation of smart infrastructure across the world is also acting as a major factor driving the demand for wireless sensor networks.
- End-user industries, like the oil and gas industry, extensively use reliable, secure, and resilient networks that are required for offering seamless communications for day-to-day operations. Multiprotocol Label Switching (MPLS), with its service oriented virtual private network (VPN) capability, for instance, has been fulfilling many such requirements of the industry by converging many applications.
- Further, in the early part of 2019, cellular device providers, like Sierra Wireless, Cisco, MultiTech Systems, GE, and Encore Networks, along with other spectrum licensees and utilities, formed the Utility Broadband Alliance, in order to further advance the development of private LTE networks for deployment in critical infrastructure industries.
- The development of smart infrastructure is expected to act as a major driver for the market. The new Connecting Europe Facility (CEF2 Digital) launched by the European Commission aims to underpin investments in very high capacity and 5G-ready fixed and mobile infrastructure to residential areas, schools and hospitals, highways, and local communities, by investing EUR 3 billion in funds designated for strategic digital infrastructure projects in the future.
- Further, the increasing use of data analytics in critical industries, like healthcare, is expected to further drive the use of wireless connectivity for real-time information gathering. According to the Society of Actuaries (SOA), 60% of healthcare executives used predictive analytics within their organizations in 2018, and 20% of payers and providers have planned to begin using predictive analytics by next year. Also, in 2019, 60% of these payers and providers expected to dedicate 15% or more of their spending to predictive analytics, with nearly two-thirds of executives anticipating that predictive analytic tools will cut organizational costs by 15% or more by 2023.
Key Market Trends
Deployment in Oil and Gas Industry is Expected to Drive Market Growth
- The oil and gas industry is experiencing increased digitization of oilfields in order to address day-to-day operational challenges and maintain a competitive advantage. The increased use of sensor technologies, cloud-based Big Data analytics, and other emergent technologies, in order to reduce unplanned downtime and increase asset optimization, require a robust and reliable network. Due to the remote nature of the oil companies' operations, wireless networks are extensively used in this industry.
- The oil and gas companies are increasingly investing in IIoT. These deployments require extreme mobile broadband, ultra-reliable low latency, and massive IoT systems (<10 ms latency, 99.9% availability, etc.). While LTE and Wi-Fi have already been addressing some of these needs, the URLLC (ultra-reliable low latency communication) is being addressed through 5G networks. Hence, 5G networks are acting as the key enablers for this market in this segment. This has led to major vendors like Qualcomm developing 5G for ultra-reliable low latency communication in extractive industries, like oil and gas.
- Further, artificial intelligence, along with wearable technology and robots, is being deployed by leading oil and gas companies to improve efficiency and to use AI in data science to make the complex data used for oil and gas exploration and production more reachable, which lets companies discover new exploration prospects or make more use out of existing infrastructures. For instance, in January 2019, BP invested in Houston-based technology start-up, Belmont Technology, to bolster the company's AI capabilities, developing a cloud-based geoscience platform nicknamed "Sandy."
- The deployment of Internet of Things (IoT) solutions, which is aiding the oil and gas industry, starting from downhole sensors to the surface control valves relaying real-time data into boardrooms for analysis, require network connectivity of the highest standard. According to Cisco, by 2020, it is expected that 50 billion assets will use IOT and the oil and gas industry is expected to leverage the same.
Asia-Pacific is Expected to be the Fastest Growing Market in the World
- The Asia-Pacific market is expected to witness the highest growth for wireless connectivity systems. This growth is expected to be led by prominent countries, like China and India. China has approximately 500 smart city pilot projects, the highest in the world, covering big and small cities. The Chinese government expects an investment of USD 74 billion of public and private investment in these cities by 2020.Th development of smart infrastructure is expected to open new avenues for wireless connectivity systems.
- Furthermore, in countries like India, there is a growing need to double the country's refining potential by 2040 to suffice the rising fuel demand, as the number of passenger vehicles increases. However, downstream company BP (India) has no plans to build new refineries despite growing oil production and is expected to focus on modernizing existing plants, while expanding its network of filling stations to generate USD 3 billion in additional cash. Digitalization of oil refineries in the region is expected to be a potential driver for the market.
- Additionally, the expansion of 5G networks in the region is expected to be one of the major factors driving the growth of the market studied, both directly and indirectly. According to GSMA's latest report, 5G is expected to contribute about USD 900 billion to the economy of the region over the next 15 years. 5G is expected to be a major driving force in automated smart factory deployments in the region. Ericsson, for instance, in September 2019, made smart manufacturing capabilities operational at its factory in Nanjiang, China.
The competitive Landscape for the wireless connectivity market is consolidated with the major market share dominated by a few players. The market remains extremely dynamic with the evolving technologies and end-user requirements driving innovations. Some of the recent developments of the market are as follows: -
- September 2019 - Emerson partnered with Cisco to introduce a next-generation industrial wireless networking solution that is expected to transform data management aiding improvement in plant productivity, reliability, and safety. Emerson Wireless 1410S Gateway offered with the Cisco Catalyst IW6300 Heavy Duty Series Access Point integrates the latest wireless technology with advanced WirelessHART sensor technology to deliver reliable and highly secure data even during harsh industrial environments.
- April 2019 - Cisco launched the Wi-Fi 6. It significantly reduces latency as compared to the previous generation application. Additionally, it delivers 400% greater capacity and is designed to be effective in high-density set ups, such as large lecture halls, stadiums, and conference rooms.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
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TABLE OF CONTENTS
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Proliferation of IoT and Connected Devices is Expected to Drive Demand for Robust Wireless Connectivity Solutions
- 4.2.2 Increased Demand for Wireless Sensor Networks to Create Smart Infrastructure
- 4.3 Market Restraints
- 4.3.1 Data Privacy and Security Concerns will Act as a Restraint for Market Growth
- 4.3.2 Lack of Infrastructure, Huge Implementation Cost, and Absence of Technology Know-how in Third World Countries
- 4.4 Industry Value Chain Analysis
- 4.5 Porters Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of Impact of COVID-19 on the Industry
5 MARKET SEGMENTATION
- 5.1 Technology
- 5.1.1 Wi-Fi
- 5.1.2 Bluetooth
- 5.1.3 Zigbee
- 5.1.4 Other Technologies
- 5.2 End-user Industry
- 5.2.1 Automotive
- 5.2.2 Industrial
- 5.2.3 Healthcare
- 5.2.4 Energy
- 5.2.5 Infrastructure
- 5.2.6 Other End-user Industries
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Qualcomm Incorporated
- 6.1.2 STMicroelectronics Inc.
- 6.1.3 Intel Corporation
- 6.1.4 MediaTek Inc.
- 6.1.5 AT&T Inc.
- 6.1.6 Cypress Semiconductor Corporation
- 6.1.7 Murata Manufacturing Co. Ltd
- 6.1.8 Panasonic Corporation
- 6.1.9 NEXCOM International Co. Ltd
- 6.1.10 Atmel Corporation (Microchip Technology Inc.)
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS