Widespread adoption of smart homes drives rapid growth in the Wi-Fi router market

Market research firm Technavio released a latest market research report titled "Global Home Wi-Fi Router Market 2020-2024", showing that the widespread adoption of smart home products has driven the rapid growth of the global Wi-Fi router market.

According to the report, the global home Wi-Fi router market is expected to grow by $1.3 billion between 2020 and 2024, with a compound annual growth rate of 37% in the Asia-Pacific region. The report also analyzes the market impact and new opportunities caused by the COVID-19 pandemic.

According to Technavio's latest market research report, the impact is expected to be huge in the first quarter but will gradually decrease in subsequent quarters. Therefore, the impact of the new coronavirus on the Wi-Fi router market will gradually decrease.

The demand for AI-enabled smart home controllers and smart appliances such as smart refrigerators, smart dishwashers, smart TVs, and smart microwave ovens has increased due to the growing popularity of smart home technology. Smart technology enables consumers to remotely control various functions of such devices very conveniently. At the same time, it can also improve product efficiency and can save costs in the long run. However, these systems require wireless technology, such as Wi-Fi networks, to ensure seamless connectivity. Therefore, with the growing popularity of smart connected home systems, the demand for home Wi-Fi routers is expected to increase significantly during the forecast period.

According to Technavio, partnerships between telecom network operators and wi-fi router manufacturers will have a positive impact on the market and contribute significantly to the growth of the WiFi router market during the forecast period.

Partnerships between telecom operators and Wi-Fi router manufacturers

Telecom providers in developing countries such as China and India are partnering with Wi-Fi router manufacturers to provide high-speed data connectivity. This is helping telecom providers and Wi-Fi router manufacturers to expand their consumer base and gain a competitive advantage in the market. For instance, in 2017, Airtel India partnered with a leading Wi-Fi router manufacturer to develop 5G networks and provide 5G routers to its new customers in India. This collaboration is increasing the sales of home Wi-Fi routers, thereby boosting the growth of the market.

“Factors such as increasing demand for remote learning, high internet penetration, and increasing online content will have a significant impact on the growth of the home Wi-Fi routers market value during the forecast period,” said Technavio.

Globally, North America led the home Wi-Fi router market in 2019, followed by Europe, Asia Pacific, South America, and MEA (Middle East and Africa). However, Asia Pacific is expected to witness the highest incremental growth during the forecast period due to the expanding market for online digital content in the region.