WIGIG MARKET ANALYSIS

Market Challenges And Opportunities

Global WiGig Market Drivers:

Rise in technological development in communication sector to propel the market growth

The communication industry is increasing showing technological developments. As per Nokia, individuals using gigabit is likely to increase to 65 million by 2022 all over the world. Thus, operators in the industry are required to improve their access networks rapidly for better catering the demand of consumers. The growing technological developments in the industry are making it more efficient, with WiGig technology being the latest advancement. It has marked a significant milestone in the history of wireless communication technologies, as it promotes significantly faster speed for wireless network connection. Thus, growing technological advancements in communication industry are expected to support growth of the market in the near future.

Growing adoption of high-resolution videos to boost the market pace

The adoption of OTT (over-the-top) content is increasing all over the world with the 5G technology likely to be the most substantial next-gen cellular network technology. With this latest trend of OTT, it requires nearly 30Mbps on internet bandwidth to stream 4K videos. For streaming high-resolution video, it needs double the bandwidth available currently, which could be unusual for the consumer-grade internet connections. However, the launch of 5G is likely to provide the extra bandwidth, which would make 4K and VR streaming the defining features in the near future. Thus, these factors are expected to propel growth of the global WiGig market over the forecast period.

Global WiGig Market Opportunities:

Growing adoption of strategic partnerships by market players is anticipated to offer growth opportunities in the global WiGig market over the forecast period. WiGig is likely to witness mass-market adoption, if it becomes the defacto standard for fixed wireless access and mmWave backhaul coonection. Recently Qualcomm and Facebook partnerd in the Terragraph project to provide internet connectivity in thick urban areas with the use of 60GHz nodes install as access points. The Terragraphy system was tested in Hungary. With the increase in expansion of the use case to other countries, and beginning of implementation, the WiGig technology is likely to be in demand in the coming years.

Rise in gaming applications of WiGig are expected to provide market players with business opportunities in the global WiGig market over the forecast period. The applications of WiGig in gaming, multimedia, and networking are increasing all over the world due to rise in digitalization. The video game industry is rapidly growing globally, along with the popularity of gaming among the youth. This in turn is anticipated to create strong demand for WiGig in the industry, as it can facilitate the audio and display application for enhancing the gaming experience. This is expected to impact the market growth positively in the coming future.

Global WiGig Market Restraints:

Limitations of WiGig technology to hamper the market growth

Along with its various benefits, WiGig has certain limitations, such as shorter operating range, which limits it to more specific uses compared to conventional Wi-Fi. WiGig operates in the 60GHz frequency range due to which it has severe limitations in terms of range. It offers higher frequency; which comes with shorter wavelength. The shorter wavelength suggests higher attenuation and shorter range. Thus, these factors impact the adoption of the WiGig technology, which in turn is expected to hinder growth of the global WiGig market over the forecast period.

Rise in cost of chipset manufacturing to restrain the market pace

The global WiGig market growth is likely to be restrained due to the rising cost of chipset manufacturing along with development of complex embedded WiGig chipsets. Due to high expenditure on industrial fabrication, the cost of manufacturing WiGig chipset is increasing all over the world. The current average expenditure on fabrication per WiGig chipset is significantly high than average expenditure on per chip set few years ago. This can be attributed to growing complexity in the architecture of the chip-level. These factors thus, are expected to hamper growth of the market in the near future.

Restaints

Limitations of WiGig technology to hamper the market growth

Along with its various benefits, WiGig has certain limitations, such as shorter operating range, which limits it to more specific uses compared to conventional Wi-Fi. WiGig operates in the 60GHz frequency range due to which it has severe limitations in terms of range. It offers higher frequency; which comes with shorter wavelength. The shorter wavelength suggests higher attenuation and shorter range. Thus, these factors impact the adoption of the WiGig technology, which in turn is expected to hinder growth of the global WiGig market over the forecast period.

Rise in cost of chipset manufacturing to restrain the market pace

The global WiGig market growth is likely to be restrained due to the rising cost of chipset manufacturing along with development of complex embedded WiGig chipsets. Due to high expenditure on industrial fabrication, the cost of manufacturing WiGig chipset is increasing all over the world. The current average expenditure on fabrication per WiGig chipset is significantly high than average expenditure on per chip set few years ago. This can be attributed to growing complexity in the architecture of the chip-level. These factors thus, are expected to hamper growth of the market in the near future.