5G Chipset Market

Global 5G Chipset Market Size (2023 to 2028) 

The global 5G chipset market size is expected to be worth USD 32.50 Billion in 2023. It is expected to grow at a CAGR of 19.50% during the forecast period and reach a value of USD 79.20 Billion by 2028.

Global 5G Chipset Market Drivers:

The rising demand for high-speed data networks with a latency of less than 1 ms for ensuring seamless connectivity for mission-critical applications like machine-to-machine (M2M) communication is the primary driver of the global 5G chipset market. Furthermore, increasing M2m/IoT connections, rising demand for mobile data services, the growing integration of 5G services with satellite communication, and strategic partnerships with system integrators in emerging economies like China and India are creating opportunities for market expansion during the forecast period. The major players of the telecom operators, all around the globe, such as AT&T, Inc., Verizon Communications, and China Telecom Corporation Limited, among others, are increasing their investments in the deployment of 5G network infrastructure for serving the high-speed connectivity to their customers. Also, growing investments for building next-generation network infrastructure are anticipated to endorse the adoption of these 5G-enabled devices across the globe, which is one of the major drivers for the growth of the 5G chipset components over the forecast period.

The 5G chipset market is expected to grow due to increasing demand for high-speed internet and network coverage in various applications like distance learning, autonomous driving, and augmented reality. 

The growing number of cellular IoT connections is propelling the 5G chipset market further. IoT and machine-to-machine (M2M) communication are anticipated to be greatly impacted by 5G's speed and dependability. Improved connectivity for seamless communication and reduced power consumption are major factors driving the growing use of new M2M technologies. To accomplish effective M2M communication, the current capacity of mobile networks needs to be able to handle billions of nodes that are predicted to ascend in the next years. 

The telemedicine sector has grown rapidly in the past few years, and 5G technology can further boost telemedicine and emergency services. Furthermore, the use of enhanced AR or VR support and 5G connectivity by smart ambulance personnel to exchange medical information and symptoms with the hospital in real-time will transform emergency care. Enhancing the adoption of 5G chipsets is the goal of the industrial automation project. Due to the 5G network's low latency, wireless flexibility, and high capacity performance, smart factories are able to overcome production issues by investing in industrial automation devices by chipset makers.  

Effective distribution of zero-rated or free-to-air audio-visual content is expected to propel the growth of companies in the 5G chipset market. For providing consumers with zero-rated media content, 5G Broadcast can deliver a higher standard of network efficiency. Live content can be offered to hundreds or even millions of people using 5G Broadcast instead of sending identical data to each user separately via unicast. With the introduction of this novel technology, the healthcare sector also has a bright future in terms of improved connection and an expanded healthcare ecosystem.  

Global 5G Chipset Market Restraints:

The increase in complexity and diversity of 5G applications and capabilities is restricting the 5G chipset market size. The range of features that businesses developing 5G goods and services now need to develop is far wider. More money will be needed to invest in this than in previous generations. Manufacturers and makers of mobile devices incur higher initial deployment costs as a result of the high cost of 5G chips. The money is spent when mobile devices such as tablets and smartphones are equipped with 5G capability. The price of 5G chipsets contributes significantly to the total cost of manufacturing 5G-capable devices. 

Service providers' clients often adopt different strategies for deploying 5G, focusing on a specific subset of features they purchase. There might be a broad dilution in the willingness to pay across the entire 5G feature set because not all network operators are interested in all functionalities. RF devices functioning at higher frequencies present design challenges that hinder the growth of the 5G chipset market. 5G uses millimeter-wave (mmWave) frequencies, which allow it to function at higher frequency bands than prior generations. Also, wavelengths are shorter for transmissions at higher frequencies, similar to those in the mmWave range. This leads to problems with the range and propagation of the signal. Sophisticated design strategies are needed to resolve the limitations of higher frequency signals, which are more affected by absorption by the atmosphere and vulnerable to obstructions like buildings and foliage.  

Impact of COVID-19 on the 5G chipset market: 

COVID-19 had little to no effect on the 5G chipset market. This can be due to changes in network utilization from office spaces to homes. Internet traffic has risen, more people are using cloud services, remote collaboration apps have been adopted, and so forth. On the other hand, some governments in developing nations postponed the spectrum auctions because of the economic impact. Even though the coronavirus has slowed down 5G implementation in severely affected areas like the US, 5G continued to advance. Despite this, the implementation of 5G has moved quicker compared to the implementation of 4G LTE in the beginning. The demands have forced every network carrier and device designer in the world to focus on the technology. 

REPORT COVERAGE:

This research report on the global 5g chipset market has been segmented and sub-segmented into the following categories.

Global 5G Chipset Market - By Type: 

• Radiofrequency integrated circuit (RFIC) 
• Application-specific integrated circuit (ASIC) 
• Cellular Integrated circuit (Cellular IC) 
• Millimeter-wave integrated circuit (mm-wave IC) 

The radiofrequency integrated circuit segment is the dominant segment under this category of the 5G chipset market. The growth of the segment is driven by the increasing demand for RF transceiver integrated circuits in smartphones, which are needed for higher bandwidth and faster data rates, as well as the complexity of smartphones, including Wi-Fi, Bluetooth, GPS, and NFC. 

Global 5G Chipset Market - By End User: 

• Automotive & Transportation 
• Energy & Utilities 
• Healthcare 
• Retail 
• Building Automation 
• Industrial Automation 
• Consumer Electronics 
• Public Safety & Surveillance 

The automotive & transportation segment is projected to be the fastest-growing segment under this category of the 5G chipset market. 5G will be important in reshaping the automotive sector by enabling the creation of novel applications that present challenges for current cellular technologies. Developers can construct a variety of apps with 5G that allow a variety of communication possibilities, such as vehicle-to-pedestrian, vehicle-to-infrastructure, vehicle-to-vehicle, and vehicle-to-network. 

Global 5G Chipset Market - By Product: 

• Devices 
• Consumer Premises Equipment 
• Network Infrastructure Equipment 

The devices segment is holding a significant share of the 5G chipset market. The rising demand from consumers for stronger and quicker mobile connectivity is one of the primary factors of market development. Consumers are searching for smartphones with reduced latency and better internet speeds due to the increase in mobile video streaming, online gaming, and other data-intensive activities. As a result, 5G chipsets which offer cutting-edge capabilities, including connectivity to multiple bands, greater data rates, and increased battery efficiency, have been developed and optimized for use in smartphones. 

Global 5G Chipset Market - By Deployment: 

• Telecom Base Station equipment 
• Connected Vehicles 
• Connected Devices 
• Broadband Access Gateway Devices 
• Others 

The telecom base station equipment segment is the leading segment of the 5g chipset market. Key players' huge investments in developing 5G chipset modules for broadband gateway devices, telecom base stations, and other communication equipment. Faster and more dependable networks are becoming increasingly necessary as data-driven applications like video streaming and cloud services become more widely used. 5G chipsets can assist in satisfying this requirement by providing more rapid and effective data transfer, which can improve the infrastructure's overall performance in IT and telecom infrastructure. 

Global 5G Chipset Market - By Frequency 

• Sub-6 GHz 
• Between 26 and 39 GHz 
• Above 39 GHz 

The sub-6 GHz segment is the leading segment, with the largest share during the forecast period. The growing use of Sub-6 GHz technologies with extensive coverage in both rural and urban regions is largely responsible for the market's growth rate because these frequency bands have a stronger depth and capacity than higher mmWave bands. Sub-6 GHz 5G chipsets are developed to work with the lower frequency bands required for 5G networks. Massive MIMO antenna systems, which allow the use of numerous antennas to boost network capacity and performance, are an important component of 5G chipsets for Sub-6 GHz. 

Global 5G Chipset Market - By Region: 

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa

The North American 5G chipset market is predicted to have a substantial share with the rapid adoption of cutting-edge technologies. Also, Qualcomm, a major manufacturer of smartphone connectivity chips that accounts for half of all core baseband radio chips in smartphones, is based in this region. It plays a significant part in the global market for 5G chipsets. 

Europe's 5G chipset market is expected to grow at a faster CAGR during the forecast period. Germany is home to the region's most cutting-edge and contemporary manufacturing facilities. As a result, it commands the greatest revenue and controls the market. Following the same pattern, the United Kingdom, Italy, and the rest of Europe account for the second and third greatest revenues in the market. 

Asia Pacific 5G chipset market is anticipated to expand as 5G technology is adopted more widely. Nine nations have already implemented 5G, and twelve more in the Asia Pacific region have plans to do the same soon. China's government was proactive and swift in organizing and promoting 5G research in the country. 

Latin America's 5G chipset market is estimated to witness a steady growth rate in the coming years. Brazil is collaborating with top 5G network deployment countries to establish 5G coverage according to ITU standards as part of its digital policy. Many Latin American nations are also working towards the adoption of 5G technology. For example, the first 5G trials in Peru were carried out by the operator Bitel. During the forecast period, Argentina's mobile subscriber base is anticipated to rise significantly, which will raise demand for the 5G chipset.  

The Middle East and Africa 5G chipset market is projected to grow at a significant pace during the forecast period. 5G networks have been quickly deployed in nations like Saudi Arabia, Bahrain, and the United Arab Emirates (UAE), and these nations have further actively promoted 5G device adoption through consumer-friendly mobile bundles.

KEY MARKET PLAYERS:

The major key market players of the 5G chipset market are Qualcomm (US), Intel (US), Nokia (Finland), Samsung Electronics (South Korea), Xilinx (US), IBM (US), Qorvo (US), Infineon Technologies (Germany), Integrated Device Technology (US), Anokiwave (US), Ericsson (Sweden), Hewlett Packard Enterprise (US), API Technologies Corp (US)

RECENT HAPPENINGS IN THE MARKET: 

• In November 2023, to enable the launch of more affordable and compact 5G devices starting in 2024, OEMs and operators have chosen the Snapdragon X35 5G Modem-RF System for 5G RedCap.