As data consumption continues to rise, mobile networks are becoming increasingly congested, creating a need to provide high speed communication services through alternative mediums. In this context, Wi-Fi offers a promising solution by providing fast and reliable wireless connectivity. Internet service providers incur substantially lower costs in setting up Wi-Fi access infrastructure compared to mobile broadband networks due to the fact that Wi-Fi technology utilises unlicensed spectrum and the equipment involved is cheaper and more readily available than that required for mobile networks. Moreover, for both small and large organisations, setting up and maintaining a Wi-Fi network is more cost-effective than installing physical network cables. Additionally, Wi-Fi networks are easily scalable, with the ability to add more access points to support an increasing number of devices and users. Modern Wi-Fi protocols, such as Wi-Fi 6 and Wi-Fi 7, enable high data transfer rates, ensuring faster and more efficient internet access. Furthermore, Wi-Fi plays a key role in the proliferation of next-generation technologies, such as internet of things (IoT), by enabling seamless communication and data sharing between sensors and smart devices.
Market size and growth drivers
Driven by the increasing adoption of smart devices and technologies, the Wi-Fi market is poised for significant growth, with its size expected to expand from $14.5 billion in 2023 to $39.4 billion by 2028, reflecting a robust CAGR of 22.2 per cent. A key driver of Wi-Fi market growth is the increasing reliance on the internet for work, education, entertainment and communication. The rise in remote working and online learning has led to greater use of connected devices, driving up demand for efficient indoor Wi-Fi networks. The growing demand for Wi-Fi-enabled devices is also fuelling the expansion of the smart home and work device markets. Smart devices such as lighting systems, thermostats and security cameras are now widely installed in homes and workplaces, particularly in developed countries such as the US, Japan and Germany.
Going forward, the Asia-Pacific region is projected to emerge as the fastest growing segment within the Wi-Fi market. This growth can be attributed to the rapid adoption of smart technologies and the increasing demand for Wi-Fi-enabled devices in emerging economies across the region, such as India. The Indian government is actively promoting the establishment of public Wi-Fi hotspots through the Prime Minister Wi-Fi Access Network Interface initiative. This scheme encourages public data office aggregators to deploy public Wi-Fi networks, enabling them to provide public Wi-Fi services through public data offices. Meanwhile, private telecom players are also actively involved in deploying Wi-Fi networks to meet the surging demand for high speed internet connectivity, serving both residential and enterprise consumers.
Emerging trends in the Wi-Fi market
Release of Wi-Fi 7: Although Wi-Fi 6 is yet to achieve widespread adoption, the Wi-Fi Alliance, a network of over 900 companies that develops and certifies Wi-Fi technology, officially launched the “Wi-Fi 7 Certified” programme in January 2024. Wi-Fi 7 offers significant improvements over Wi-Fi 6, providing faster speeds, enhanced capacity and reduced latency. It supports wider channels, enabling data transmission up to 320 MHz compared to Wi-Fi 6’s maximum of 160 MHz. This ensures more efficient data handling, even in congested environments. Wi-Fi 7 also enables multi-link operation, allowing simultaneous connections across different bands for better performance and stability. Additionally, Wi-Fi 7 supports 4K-quadrature amplitude modulation (QAM), improving peak performance by 20 per cent over Wi-Fi 6’s 1,024-QAM. These advancements are expected to ensure smoother video streaming, gaming and more reliable connectivity in high-demand scenarios.
Growing popularity of WaaS: Wi-Fi-as-a-service (WaaS) is a managed service model that enables businesses to access wireless connectivity without the complexities of managing the underlying infrastructure. WaaS relies on cloud-based platforms to manage, monitor and optimise Wi-Fi networks. It enables real-time updates, provides centralised control and enhances predictive maintenance capabilities without the need for on-site IT staff. Moreover, WaaS allows organisations to easily expand or downsize their Wi-Fi coverage to meet changing business needs. It eliminates the need for upfront capital expenditure on equipment and infrastructure, as companies pay a predictable monthly or annual subscription fee to use the service provider’s WaaS platform, thereby reducing the total cost of ownership. Meanwhile, WaaS enables businesses to support advanced use cases such as IoT integration, location-based services and analytics-driven marketing campaigns. Given these advantages, the global WaaS market is estimated to grow at a CAGR of 19.6 per cent, from $4.85 billion in 2023 to $15.56 billion in 2030.
Open roaming driving the adoption of public Wi-Fi: To encourage the use of public Wi-Fi, the industry has introduced open roaming, which eliminates the need for users to repeatedly authenticate or enter passwords when connecting to new Wi-Fi hotspots. This technology enables automatic connection through a single identity, such as a mobile phone number or email address, using cloud-based authentication systems. Besides enhancing user convenience, open roaming removes the friction traditionally associated with accessing public Wi-Fi, making the process quicker and more user-friendly.
Opportunities for industry stakeholders
The considerable growth in the Wi-Fi market in recent years has presented a wide array of opportunities for industry stakeholders, including telecom operators, infrastructure providers, equipment manufacturers and cloud service providers. For telecom operators, the growing demand for high speed Wi-Fi opens new avenues for service expansion and revenue generation. As mobile data usage continues to rise, operators can leverage Wi-Fi networks to offload traffic from cellular networks, particularly in high-density areas such as urban centres, malls and airports. Additionally, operators can offer value-added services such as enhanced security and managed Wi-Fi services, creating new sources of income.
Tower players stand to gain by providing the necessary infrastructure to support Wi-Fi connectivity, including small cell installations and backhaul links. Tower companies can also serve as neutral hosts, enabling multiple telecom operators and service providers to share the same Wi-Fi infrastructure. This promotes resource sharing and reduces redundancy, particularly in densely populated urban areas where space and resources are limited. Further, tower companies can support network operators in densifying their Wi-Fi networks by offering co-location services on their existing towers or building new infrastructure in strategic locations. As more businesses and smart cities invest in Wi-Fi coverage, infrastructure providers can capitalise on large-scale deployment contracts and service agreements.
Meanwhile, equipment manufacturers can benefit from the growing Wi-Fi market through increased demand for advanced Wi-Fi devices. With the advent of newer Wi-Fi standards, such as Wi-Fi 7, manufacturers can tap into the growing market for high-performance access points, routers and end-user devices. The proliferation of IoT devices is also driving demand for Wi-Fi-enabled products, offering significant growth opportunities for equipment manufacturers. Finally, with WaaS gaining traction, cloud service providers are well positioned to benefit from a rapidly growing Wi-Fi market.
Challenges and the way forward
Although Wi-Fi has become a key enabler of digital connectivity, the technology faces several challenges that could hinder its future adoption and growth. The security of Wi-Fi networks is a significant concern due to their susceptibility to breaches. Unprotected networks can be exploited by unauthorised users, putting data at risk of theft or misuse. Hackers can also create fraudulent access points that mimic legitimate Wi-Fi networks, tricking users into connecting to malicious networks and compromising their data.
Another critical issue is the limited availability of unlicensed spectrum for operating Wi-Fi networks, especially in densely populated urban areas with a large number of connected devices. Interference from overlapping networks and non-Wi-Fi devices operating in the same frequency bands exacerbates the problem, leading to inconsistent connectivity and slower speeds. Furthermore, inadequate fibre backhaul, which is essential for supporting high speed Wi-Fi networks, restricts the roll-out of reliable services, particularly in rural and remote regions. Variations in spectrum allocation policies across countries also complicate global Wi-Fi standardisation efforts. Some governments impose restrictions on wireless technologies, further affecting market expansion.
Despite these challenges, the Wi-Fi market is set to play an increasingly central role in enabling the next generation of digital connectivity. The expansion of Wi-Fi 6 and the upcoming roll-out of Wi-Fi 7 standards will be crucial in supporting the growing demand for high-bandwidth applications such as 4K streaming, gaming and IoT connectivity. Furthermore, as the adoption of smart home devices, connected vehicles and industrial IoT expands, Wi-Fi will remain the preferred medium over cellular networks. Innovations such as open roaming and enhanced security protocols are expected to increase public Wi-Fi adoption, providing a significant boost to the Wi-Fi market
