After the record in 2021, the demand for electronics with Wi-Fi has clearly decreased
According to an IDC report, in 2021, an 8.6% increase in sales of Wi-Fi devices was recorded. It was related to a number of global restrictions and the transition to remote work and education. This trend did not last long, however in 2022, for the first time in history, the market for devices with Wi-Fi it shrank by 4.9% to 3.8 billion products sold.
This is an echo of problems with supply chains (including pandemic lockdowns in China until December 2022), high stock levels of selected devices and components, and a noticeable crisis in the market of mobile devices, which are the most frequently purchased category of Wi-Fi devices. The problem was further exacerbated by currency destabilization and a dramatic increase in inflation — for PLN 1,000 we will now buy worse phones than 2 years ago.
The Internet of Things is the main driver of increasing sales
In 2023 do not expect a revolution – sales will remain at a similar level to that in 2022 i will be approximately 3.9 billion devices. The main driving force for the development of the market is not smartphones or laptops, but the IoT, i.e. the so-called internet of things. We are talking here about solutions for smart cities, industrial internet of things, wearable electronics or smart home solutions. Already in 2021 IoT has defeated smartphones, and in unstable In 2022, it reached 37 percent. market share. According to IDC estimates, IoT will be the largest product segment in 2027, with a share of over 40% of sales.
Huge increase in the share of Wi-Fi 6 and 6E, Wi-Fi 7 on the horizon
In 2023, client devices such as smartphones, tablets and computers will continue to lead the way, reaching 40% of global sales of Wi-Fi devices. However, a significant change will be the share of individual wireless technologies. As IDC estimates, as many as 2/3 of devices delivered in 2023 will be devices equipped with Wi-Fi 6 or Wi-Fi 6E. However, the propagation of these standards in the IoT will be crucial here as well. Wi-Fi 7 will be reserved, for now, only for premium devices.
Rebound in 2024 – cheaper smartphones?
Phil Solis, research director for smartphone connectivity and semiconductors at IDC, makes the prediction exit from stagnation as early as 2024. According to the expert, the market of Wi-Fi devices in 2024 will grow by 6.4%, reaching deliveries of 4.1 billion devices.
However, do not expect that cheaper smartphones will attract customers to stores. Price standards for premium phones, set by Samsung, Apple or Xiaomi have this that once raised, the premiere prices of phones change in favor of customers only cosmetically. Perhaps, however, the lower segment of devices will finally be unclogged and instead of cutting RAM and internal memory or pressing several-year-old processors, at the price of PLN 1,000 – 1,500, we will finally see innovations encouraging purchases.
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