I am facing a similar issue in my HP Ubuntu 16.04 laptop... WiFi icon is
grayed out, it doesn't show the active connection (though it is actually
connected to my WiFi router!) and it shows other Wi-Fi networks.
Sometimes, the whole icon disappears and I get the small icon of network
(with the up-down arrows)!

As reported by others, I suspect that it is caused due to laptop going
to standby.

The "service network-manager restart" command worked for me!

Wish this bug could be fixed though!

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https://bugs.launchpad.net/bugs/1585886

Title:
  WiFi indicator icon disappears in Ubuntu 16.04

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