Chip Antenna Market

Market Overview

The global chip antenna market size was valued at USD 1.6 Billion in 2023 and is projected to reach USD 5.4 Billion by 2032, registering a CAGR of 14.6% during the forecast period (2024-2032). The chip antenna market growth is primarily driven by rising demand for consumer electronics and connected devices across various industries, which aids in establishing short-range wireless communication.

A chip antenna is a miniature antenna commonly used in electronic devices for wireless communication. It is called a "chip" because of its small size and thin profile, which resembles an integrated circuit chip. These antennas transmit and receive radio frequency (RF) signals in various devices, including smartphones, tablets, laptops, wearables, and IoT devices.

One of the primary drivers of the business is the low cost of chip antennas compared to traditional antennas. Chip antennas are widely used in Internet of Things (IoT) applications such as smart grids, smart homes, connected cars, and the industrial internet. The chip antenna market is also expected to benefit from expanding the miniaturization trend in consumer electronics. The retail Internet of Things market is expected to grow in response to rising demand for data analysis and analytics integration. Furthermore, e-commerce platforms have increased significantly due to the ease of shopping and widespread use of smartphones, which is expected to fuel the growth of the chip antenna market share.

Highlights

• LTCC Chip accounts for the largest share by type.
• Bluetooth is a significant contributor to the market through its application.
• Telecommunication is the major end-user of the market.

Market Dynamics

Global Chip Antenna Market Drivers

Proliferation of IoT Devices

The growing use of Internet of Things (IoT) devices in various industries, including smart home automation, industrial automation, healthcare, and automotive, is driving up demand for chip antennas. These antennas enable wireless connectivity in IoT devices, allowing for data transmission, remote monitoring, and control capabilities. Consider a smart home ecosystem in which a homeowner uses a smartphone app to remotely control the thermostat, monitor security camera feeds, and open the front door for a visitor. In this scenario, chip antennas embedded in each IoT device allow for seamless communication via Wi-Fi, Bluetooth, Zigbee, or other wireless protocols, facilitating the interconnectedness and automation of the smart home.

Statista estimates there will be approximately 15.14 billion IoT-connected devices worldwide by 2023. This is nearly double the world's population of eight billion. The number of IoT devices is expected to reach 29.42 billion by the end of 2030. This rapid increase in IoT device deployment highlights the high demand for chip antennas to enable wireless connectivity in IoT ecosystems. According to a 2023 report by the International Data Corporation (IDC), global spending on the Internet of Things (IoT) is expected to reach USD 805.7 billion in 2023, up 10.6% from 2022. This significant investment in IoT infrastructure emphasizes the importance of chip antennas in enabling wireless communication in IoT devices across multiple industries.

In addition, the proliferation of IoT devices in various industries, including smart homes, industrial automation, healthcare, and automotive, drives demand for chip antennas that enable wireless communication and connectivity in IoT ecosystems. As the IoT market expands, chip antenna manufacturers can expect to see sustained growth and increased demand for their products. 

Global Chip Antenna Market Restraints

Performance Limitations

Due to their small size and integrated design, Chip antennas may perform less than larger external antennas. Limited radiation efficiency, narrow bandwidth, and susceptibility to interference or detuning can all impact chip antenna performance, particularly in demanding RF environments or applications that require long-range communication.

As a result, IoT deployment needs more intermittent connectivity, data packet loss, and decreased responsiveness, reducing real-time monitoring and decision-making effectiveness in industrial processes. To address these performance issues, the manufacturer may look into alternative antenna solutions or use optimization techniques like antenna tuning, matching networks, and antenna diversity to improve signal quality and robustness in challenging RF environments.

Furthermore, one limitation of chip antennas in 2023 is that the matching level is relatively flat at -2dB, with a 1dB improvement at 960MHz. This results in about 1dB lower efficiency at 700MHz but a significant improvement above 800MHz and more than 1dB at 960MHz. Antenna measurement and testing reports produced by industry organizations or regulatory bodies, such as the Federal Communications Commission (FCC) in the United States or the European Telecommunications Standards Institute (ETSI) in Europe, may contain empirical data on-chip antenna performance characteristics under various operating conditions and RF environments.

Global Chip Antenna Market Opportunity

Expansion of Smart City Initiatives

The global proliferation of smart city initiatives allows chip antenna suppliers to provide connectivity solutions for smart infrastructure, such as smart streetlights, environmental sensors, traffic management systems, and public safety equipment. Chip antennas designed for outdoor use and capable of operating in various frequency bands will be critical components in smart city networks, enabling seamless communication and data exchange across urban environments.

In addition, in India, the Union Ministry of Urban Development collaborates with state governments to carry out this mission, which includes 100 cities. As of September 2023, 6,188 out of 7,960 projects were completed, costing INR 113,721 out of INR 171,432 crore. The mission's goal is to improve the quality of life for Indian citizens by promoting more modes of transportation, such as public transportation, and launching more online governance services. China is investing in smart cities through 2023 to improve urban life, sustainability, and efficiency. The country's smart cities are expected to expand significantly between 2023 and 2030, with the Internet of Things (IoT) revolution driving an increasingly connected society. China's large smartphone user base, combined with its hardware and software development strengths, gives it an advantage in pushing IoT boundaries.

As a result, the expansion of smart city initiatives creates an attractive opportunity for chip antenna manufacturers to provide wireless connectivity solutions for a wide range of smart city applications, such as smart street lighting, environmental monitoring, traffic management, and public safety. Chip antennas contribute significantly to urban innovation, sustainability, and efficiency by allowing for seamless communication and data exchange in smart city infrastructure. 

Regional Analysis

Asia-Pacific Dominates the Global Market

The global chip antenna market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East Africa, and Latin America.

Asia-Pacific is the most significant global chip antenna market shareholder and is estimated to grow at a CAGR of 14.9% over the forecast period. The Asia-Pacific region invests heavily in IoT technology, with South Korea and Singapore expected to be among the first global markets to adopt IoT chips. According to data from the Organization for Economic Cooperation and Development, South Korea is the first country in the world with the most Internet-connected devices per habitat, followed by Denmark and Switzerland. Furthermore, India's goal of transforming 100 cities into smart cities is expected to result in a high demand for IoT devices in smart homes and the automotive sector. This is also an essential factor driving market growth in this region.

In addition, the Japanese government has announced the Integrated Innovative Strategy 2022, which outlines the plan for achieving the country's objectives. Japan's 6th Science, Technology, and Innovation Basic Plan aims to achieve Society 5.0 by investing 120 trillion yen in R&D between the public and private sectors over the next five years, beginning in fiscal 2021. According to a Microsoft IoT Signals report, the Asia-Pacific region has been a significant manufacturing hub, and the sector remains a strong adopter of the Internet of Things (IoT). The COVID-19 pandemic has increased investment across various industries as IoT becomes more tightly integrated with other technologies. 

North America is anticipated to exhibit a CAGR of 14.4% over the forecast period. The North American Chip Antenna market will dominate due to increased adoption of developed technologies and high spending on research and development of wireless transmission technologies, which will drive market growth in this region. Significant investments in 5G infrastructure are taking place in the United States and Canada, accelerating the adoption of 5G-enabled devices and applications. As 5G networks are deployed across North America, chip antennas optimized for 5G frequency bands are critical to enabling high-speed wireless connectivity in smartphones, tablets, IoT devices, and other connected devices. North America is a leader in 5G deployment, with 176 million connections as of Q3 2023, a 14% increase from the previous quarter. By the end of 2023, the region will account for 29% of all North American connections, with 5G connections growing at 64% annually. 

Europe chip antenna market accounts for a sizable market share due to the district's high population density and innovative drive. Furthermore, the German Chip Antenna market had the highest market share, while the UK was the fastest-growing in the European region.

Segmental Analysis

The global chip antenna market is segmented based on type, application, and end-user.

The market is further segmented by type into LTCC Chip and dielectric Chip Antenna.

The LTCC chip segment contributed the most revenue to the market in 2023. LTCC chip antennas are made from a special ceramic material that can withstand high temperatures during manufacturing. These antennas provide excellent RF performance, reliability, and stability across various operating conditions. LTCC technology enables precise control over antenna dimensions and characteristics, making it ideal for applications with stringent performance requirements. LTCC chip antennas are commonly used in high-frequency applications such as wireless LAN, Bluetooth, and GPS, requiring compact size, high efficiency, and consistent performance. They are valued for providing reliable wireless connectivity in small electronic devices while maintaining high signal quality.

Dielectric chip antennas are made from dielectric materials like ceramics or polymers containing embedded conductive elements. These antennas are distinguished by their small size, low profile, and ease of installation in electronic devices. Dielectric chip antennas provide good RF performance over a wide frequency range and are ideal for applications with limited space. They are widely used in consumer electronics, IoT devices, wearables, and other portable devices that require miniaturization and efficient space utilization. Dielectric chip antennas provide dependable wireless connectivity while reducing the size and complexity of electronic products, making them a popular choice for modern wireless communication applications.

The market can be bifurcated by application into WLAN/Wi-Fi, Bluetooth, Dual Band/Multi Band.

The Bluetooth segment contributed the most revenue to the market in 2023. Chip antennas optimized for Bluetooth applications are intended to operate in the 2.4 GHz ISM (Industrial, Scientific, and Medical) frequency band designated for Bluetooth communication. These antennas allow wireless connectivity between smartphones, tablets, headphones, speakers, smartwatches, and IoT devices for short-range data transfer, audio streaming, and pairing. Bluetooth chip antennas have a small size, low power consumption, and dependable performance, making them ideal for integration into portable electronic devices with limited space and power. They allow seamless communication and data exchange between Bluetooth-enabled devices, enabling features like wireless audio streaming, file sharing, device synchronization, and smart home automation.

Chip antennas for WLAN (Wireless Local Area Network) or Wi-Fi applications are optimized to operate in the 2.4 GHz and 5 GHz frequency bands, commonly used for wireless networking. These antennas are critical components in smartphones, laptops, routers, and IoT devices that require high-speed wireless internet connectivity. WLAN/Wi-Fi chip antennas provide dependable performance, excellent coverage, and seamless connectivity in both indoor and outdoor environments. They allow devices to connect to Wi-Fi networks to access the internet, stream data, share files, and perform other online activities. With the proliferation of Wi-Fi-enabled devices and the demand for faster and more reliable wireless connectivity, WLAN/Wi-Fi chip antennas are critical to enabling seamless internet access and communication in homes, offices, public spaces, and IoT ecosystems.

Based on End-User, the market is fragmented into Consumer Electronics, Others, Automotive, Healthcare, and Telecommunication.

The telecommunications segment contributed the most revenue to the market in 2023. Chip antennas are used in telecommunications infrastructure for various applications such as base stations, repeaters, small cells, and communication modules. Chip antennas enable wireless communication between network components, mobile devices, Internet of Things devices, cellular networks, Wi-Fi hotspots, and other wireless technologies. Chip antennas in telecommunications must provide consistent coverage, high data throughput, and efficient spectrum utilization to meet the needs of modern wireless networks and emerging technologies such as 5G, IoT, and smart cities.

The automotive industry relies on-chip antennas for various applications, including in-vehicle connectivity, infotainment systems, telematics, and advanced driver assistance systems. Chip antennas enable wireless communication between onboard systems, external networks, and connected devices, allowing features like hands-free calling, streaming audio, real-time navigation, vehicle diagnostics, and remote vehicle monitoring. Chip antennas in automotive applications must meet stringent reliability, durability, and performance requirements in harsh operating environments such as extreme temperatures, vibration, and electromagnetic interference (EMI).

Recent Developments

• March 2024- KEMET introduced First T581 Polymer Tantalum Surface Mount Capacitors that Meet Military Performance Specification MIL-PRF-32700/2
• February 2024- Antenova Ltd, a leading designer and manufacturer of high-performance internal antennas and RF modules, and 2J Antennas, a global supplier of high-quality external antenna solutions, are pleased to announce their partnership after DiscoverIE Group PLC's acquisition.