5G Chipset Market Outlook – 2030
The Global 5G Chipset Market size was valued at $13.26 billion in 2020, and is projected to reach $92.05 billion by 2030, registering a CAGR of 21.8% from 2021 to 2030.
5G chipset is an enhanced component of customer premises equipment and network infrastructure equipment that is designed to enable the end user to build a wireless network based on 5G-network specifications. The explosion of internet-connected gadgets raises the demand for a whole new wireless infrastructure known as 5G. Fifth-generation wireless (5G) is the next generation of mobile networks after the present 4G LTE mobile network. These networks extend broadband wireless Operational Frequency beyond mobile internet to the Internet of Things (IoT) and essential communications segments, allowing for a perceived completely linked globally.
In addition, the next-generation cheapest 5G chipset solution is forecast to deliver new levels of efficiency and performance, enabling new user experiences and the interconnection of new sectors. Moreover, the rise in demand for 5G network infrastructure solutions drives the 5G chipset market outlook as it facilitates the interconnection of new industries enabling enhanced efficiency and minimizing cost, thereby driving the 5G chipset industry growth.
The 5G chipset market is expected to witness notable growth during the forecast period, owing to proliferation of M2M/IoT connections. Furthermore, rise in demand for high-speed internet and large network coverage drives the growth of the market. Moreover, increase in demand for mobile broadband operational frequency is expected to propel the growth of the 5G chipset market growth during the forecast period.
However, high investment and technological & infrastructure challenges in the implementation of 5G network and privacy and security concern are some of the prime factors that restrains the market growth. On the contrary, rise in government initiatives for building smart cities in Asia-Pacific is expected to provide lucrative opportunities for the growth of the 5G chipset market during the forecast period.
By Ic Type
ASIC segment influence the market in 2020, and expected to follow the same in future.
Key Takeaways
- The global 5G chipset market study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
- More than 1,500 product literatures, industry releases, annual reports, and other such documents of major market industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
- The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global 5G chipset markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
Key Market Dynamics
The 5G chipset market is expected to witness notable growth during the forecast period, owing to proliferation of M2M/IoT connections. Furthermore, rise in demand for high-speed internet and large network coverage drives the growth of the market. Moreover, increase in demand for mobile broadband operational frequency is expected to propel the growth of the 5G chipset market growth during the forecast period.
However, high investment and technological & infrastructure challenges in the implementation of 5G network and privacy and security concern are some of the prime factors that restrains the market growth. On the contrary, rise in government initiatives for building smart cities in Asia-Pacific is expected to provide lucrative opportunities for the growth of the 5G chipset market during the forecast period.
5G Chipset MArket Segment Overview
The 5G chipset market is segmented by IC type, operational frequency, product, industry vertical, and region. On the basis of IC type, the market is divided into radio frequency integrated circuit (RFIC), application-specific integrated circuit (ASIC), cellular integrated circuit (Cellular IC), and millimeter wave integrated circuit (mmWave IC). The application-specific integrated circuit (ASIC) segment dominated the market, in terms of revenue, in 2020, and is expected to follow the same trend during the forecast period.
By Operational Frequency
Sub 6Ghz on the Move segment hold domination position in 2020.
On the basis of operational frequency, it is segmented into sub-6 GHz, between 26 & 39 GHz, and above 39 GHz. The sub-6 GHz segment acquired maximum revenue in 2020 and is expected to dominate the market in coming years.
On the basis of product, the market is classified into devices, customer premises equipment (CPE), and network infrastructure equipment. The devices segment was the highest revenue contributor in 2020, and is anticipated to garner significant 5G chipset market share during the forecast period.
By Product
Devices on the Move segment hold domination position in 2020.
On the basis of industry vertical, the market is bifurcated into automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, industrial automation and others. The consumer electronics segment acquired the largest 5G chipset market share in 2020. However, the BFSI segment is expected to grow at a high CAGR from 2021 to 2030.
Region-wise, the 5G chipset market are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Russia, and the rest of the Europe), Asia-Pacific (China, India, Japan, South Korea, and the rest of the Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). North America, specifically the U.S., remains a significant participant in the global digital out of home industry. Major organizations and government institutions in the country are intensely putting resources into the technology.
By Industry Vertical
Consumer Electronics segment generated the highest revenue in 2020.
Top Impacting Factors
Significant factors that impact the growth of the global 5G chipset industry include rise in demand for optical scanners solutions paired with growing demand for high-speed internet and large network coverage. Moreover, proliferation of M2M/IoT connections is expected to drive the growth opportunity in the 5G chipset market. However, high investment and technological & infrastructure challenges in the implementation of 5G network and privacy and security concern hampers the growth of the market. On the contrary, surge in government initiatives for building smart cities in Asia-Pacific is expected to offer potential growth opportunity for the 5G chipset market during the forecast period.
Regional/Country Market Outlook
• North America: North America leads the 5G chipset marketplace, with the U.S. At the forefront because of early rollouts by major telecom carriers like Verizon, AT&T, and T-Mobile. Government initiatives assisting digital infrastructure and the demand for industrial IoT and artificial technologies are key drivers. However, the high value of deployment and slower advancement in rural regions establish challenges to a major adoption.
• Europe: Europe is gradually advancing in 5G deployment, with Germany, the UK, and France leading the efforts. EU guidelines and financial support for 5G infrastructure, alongside strong demand from industries like automotive and healthcare, are boosting the 5G chipset market. Nevertheless, fragmented rules and problems with spectrum allocation across international locations may lead to slow progress in the region.
• Asia-Pacific: Asia-Pacific is the fastest-growing region for 5G chipsets, driven with the investments in countries like China, Japan, and South Korea. China’s network growth, Japan's focus on 5G in automation and robotics, and South Korea’s superior infrastructure are a few of the primary factors for the 5G chipset market growth.
• Latin America and Middle East: Latin America is witnessing the early investments in 5G adoption, with Brazil being the main adaptor of the technology, Meanwhile, the Middle East, specially the UAE and Saudi Arabia, is experiencing fast 5G growth because of robust growth policies by the government.
Competitive Analysis
Competitive analysis and profiles of the major 5G chipset market players, such as Qualcomm Technologies, Inc., Broadcom, Intel Corporation, Nokia Corporation, Samsung Electronics Co., Ltd., Mediatek Inc., Xilinx Inc., Huawei Technologies Co., Ltd., Qorvo, and Infineon Technologies AG are provided in this report. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.
By Region
Asia-Pacific segment garner significant market share in 2020.
Report Coverage & Deliverables
This report delivers in-depth insights into the 5G CHIPSET market, by IC Type, Operational Frequency, Product and Industry Vertical, and key strategies employed by major players. It offers detailed market forecasts and emerging trends.
IC Type Insights
The 5G chipset market is segmented into ASIC, RFIC, Cellular IC, and mmWave IC. ASIC (Application-Specific Integrated Circuits) are crucial for specialized 5G applications requiring high efficiency. RFIC (Radio Frequency ICs) are essential for managing the radio signals used in wireless communication. Cellular ICs support the growing demand for smartphones and other mobile devices, while mmWave ICs are critical for high-speed data transmission in urban and dense environments, offering ultra-fast performance over short distances.
Operational Frequency Insights
5G chipsets operate at various frequency bands: Sub-6 GHz, 26-39 GHz, and Above 39 GHz. Sub-6 GHz frequencies are the most widely adopted due to their broad coverage and penetration capabilities, suitable for large-scale deployment. Frequencies between 26 and 39 GHz offer faster data transmission and are increasingly used in high-demand areas. The Above 39 GHz spectrum, particularly mmWave, is gaining traction for ultra-high-speed applications in urban centers and specialized industries.
Product Insights
The 5G chipset market includes Devices, Customer Premises Equipment (CPE), and Network Infrastructure Equipment. Devices, especially smartphones and IoT gadgets, dominate the market, driving demand for 5G connectivity. CPE, such as routers and modems, help deliver 5G services to end-users. Network Infrastructure Equipment, like base stations and core network components, play a vital role in enabling the 5G ecosystem and expanding network coverage.
Industry Vertical Insights
The adoption of 5G chipsets spans multiple industries, including automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, and industrial automation. consumer electronics, especially smartphones, lead demand for 5G chipsets. automotive & transportation sectors leverage 5G for connected vehicles and autonomous driving, while industrial automation and energy & utilities use 5G for IoT applications and smart grid technology, while Healthcare sees growing use of 5G for telemedicine and remote monitoring solutions.
Regional Insights
North America and Asia-Pacific dominate the 5G chipset market. North America benefits from early network rollouts, while Asia-Pacific, led by China, Japan, and South Korea, is the fastest-growing region. Europe is progressing steadily, and Latin America, the Middle East, and Africa face slower growth due to economic and infrastructural challenges.
Key Strategies and Developments
In July, 2024, American chipmaker Qualcomm introduced its budget-friendly Snapdragon 4s Gen 2 chipset in India, aiming to bring 5G and Wi-Fi 5 connectivity to smartphones priced under $99.
- In July 2024, Xiaomi, the renowned Chinese technology company, is reportedly working on an in-house 5G-enabled chipset specifically designed for smartphones. This proprietary chip is expected to be launched in the first half of 2025 and is being developed in partnership with chipmaker Unisoc, which will also provide the 5G modems for the system-on-chip (SoC). Although Xiaomi has yet to officially confirm its plans for the chipset, it remains uncertain whether it will be integrated into flagship models or midrange devices.
Key Benefits for Stakeholders
This study comprises analytical depiction of the 5G chipset market along with the current trends and future estimations to depict the imminent investment pockets.
- The overall 5G chipset market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The 5G chipset market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the 5G chipset.
- The report includes the share of key vendors and 5G chipset market trends.
5G Chipset Market, by IC Type Report Highlights
| Aspects | Details |
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 By Operational Frequency |
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 By Product |
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 By Industry Vertical |
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 By Key Market Players |
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Analyst Review
The market for 5G chipset is predicted to develop at an exponential rate during the forecast period. Improved precision, efficiency, and speed of operations in 5G embedded devices are likely to fuel market growth. Moreover, the 5G network quickly grows as a result of the rise in demand for interconnected device requirements across prime economies, which generates a rich roadmap of the Internet of Things for the growth of 5G chip solutions. In addition, the surge in demand for the Internet of Things and smart infrastructure solutions in the consumer electronics, residential, commercial, and healthcare sectors are expected to drive the growth of the market in the coming years.
The 5G chipset market is highly competitive, owing to the strong presence of existing vendors. 5G chipset vendors who have access to extensive technical and financial resources are anticipated to gain a competitive edge over their rivals, as they have the capacity to cater to the market requirements. The competitive environment in this market is expected to further intensify with increase in technological innovations, product extensions, and different strategies adopted by key vendors.
Surge in adoption of 5G network solution across emerging economies drive the need to enhance 5G chipset solutions. Moreover, prime economies, such as China, South Korea, and Japan, plan to develop and deploy fifth generation cellular network solutions across various sectors. For instance, on November 2021, Chip designer, MediaTek Inc., announced the launch of new 5G smartphone chip that is expected to be used in premium-priced Android smartphones, which is anticipated to provide lucrative opportunities for market growth.
Among the analyzed regions, Asia-Pacific exhibits the highest adoption rate of and has experienced massive expansion of the market. On the other hand, LAMEA is expected to grow at a faster pace, predicting lucrative growth due to emerging countries, such as Brazil, Dubai, and others, investing in these technologies. Regions, such as the Middle East and Latin America, are also expected to offer new opportunities in the digital out of home market.
Globally, various key players and government agencies operating in 5G chipset market are investing in next generation 5G cellular solution to make them compatible with various industrial platforms. For instance, on July 02, 2021, according to the South Korean newspaper Korea Herald, South Korea by the end of May was valued at 15.8 million 5G subscribers. According to the report, 5G network subscribers in South Korea at the end of May 2021 was increased to more than 15.7 million mobile subscriptions in the country, which showcases lucrative growth opportunities for the market growth.
The key players profiled in the report include Qualcomm Technologies, Inc., Broadcom, Intel Corporation, Nokia Corporation, Samsung Electronics Co., Ltd., Mediatek Inc., Xilinx Inc., Huawei Technologies Co., Ltd., Qorvo, and Infineon Technologies AG.
The global 5G chipset market was valued at approximately $13.26 billion in 2020 and is projected to reach $92.05 billion by 2030, growing at a CAGR of 21.8%.
The 5G chipset market encompasses the production and sale of integrated circuits designed to facilitate 5G network connectivity in devices such as smartphones, tablets, and IoT devices.
Leading companies in the 5G chipset market include Qualcomm Technologies, Inc., Huawei Technologies Co., Ltd., Intel Corporation, MediaTek Inc., and Samsung Electronics Co., Ltd.
As of recent analyses, the Asia-Pacific region holds the largest share of the 5G chipset market, driven by rapid technological adoption and significant investments in 5G infrastructure.
Key drivers include the increasing demand for high-speed internet, the proliferation of IoT devices, and substantial investments in 5G network infrastructure.
Challenges include high infrastructure costs, technological and regulatory hurdles, and concerns over data privacy and security.
The key growth strategies of 5G chipset market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Mmwave IC segment would grow at a highest CAGR of 24.1% during the forecast period.
Asia-Pacific region will dominate the market by the end of 2030.
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