The adoption of Wi-Fi 7 across the iPhone 16 series is expected to be a key driver for the rapid penetration of the wireless technology, with Android flagship smartphones likely to follow suit. This trend is set to accelerate the adoption of Wi-Fi 7 in mobile applications, potentially benefiting companies such as MediaTek, Realtek Semiconductor, RichWave Technology, and M3 Technology in 2025.
Smartphones have consistently been at the forefront of introducing the latest Wi-Fi technologies, positioning them as key indicators of future growth for Wi-Fi 7. Industry insiders anticipate that major brands will begin introducing Wi-Fi 7 in their flagship models in the second half of this year. The adoption rate in lower-tier models will hinge on market acceptance.
However, most industry players predict that some lower-premium flagship and mid-to-high-end models will incorporate Wi-Fi 7 by the first half of 2025, further boosting penetration rates and accelerating updates in other applications, including PCs, TVs, VR/AR devices, and various networking equipment.
According to major research institutions, the penetration rate of Wi-Fi 7 will reach more than 10% in 2025, with some optimistic projections suggesting it could reach between 15% and 20%. In addition to smartphones and PCs, networking equipment will be a key growth driver.
With Wi-Fi 7's support for multi-link operation (MLO), future routers may evolve into more advanced network distribution devices. By integrating Wi-Fi 7 chip platforms with AI algorithms, these devices can allocate network bandwidth and channels more efficiently within a single space, challenging the design capabilities of Wi-Fi chip manufacturers.
Industry insiders familiar with the Wi-Fi chip industry point out that the supply of Wi-Fi chips for smartphones and other major consumer applications is still dominated by US-based giants such as Qualcomm and Broadcom. Although MediaTek has made recent breakthroughs, it has not yet been able to benefit from the upgrade dividends of flagship smartphones as quickly as its US counterparts.
However, market opportunities for other consumer devices and networking equipment remain substantial. Taiwanese manufacturers have made steady progress in the router market in recent years, with strong customer forecasts for Wi-Fi 7-related orders indicating promising growth ahead. The industry widely expects Taiwanese manufacturers to see significant benefits from the Wi-Fi 7 wave in 2025.
Despite lackluster networking chip shipments in 2024, upgrade momentum remains, largely fueled by the transition from Wi-Fi 5 to Wi-Fi 6, which has become the mainstream standard. Beyond mass consumer electronics, networking equipment has also undergone comprehensive updates to incorporate Wi-Fi 6.
Some market observers note that 2024 marks the final significant wave of Wi-Fi 6 upgrades, with limited growth potential remaining as most devices have already transitioned. Some applications may continue to rely on Wi-Fi 5 due to practical needs and cost considerations. Consequently, starting in 2025, the networking market is expected to shift its focus toward the anticipated upgrade boom of Wi-Fi 7.
