5G Modem Market Research, 2031
The global 5G modem market was valued at $845.3 million in 2021 and is projected to reach $10.8 billion by 2031, growing at a CAGR of 29.1% from 2022 to 2031.
A modulator-demodulator or modem is a hardware device that converts data from a digital format into a format suitable for an analog transmission medium such as ta telephone or radio. A modem transmits data by modulating one or more carrier wave signals to encode digital information, while the receiver demodulates the signal to recreate the original digital information. The goal is to produce a signal that can be transmitted easily and decoded reliably. Modems can be used with almost any means of transmitting analog signals, from light-emitting diodes to radio. Wireless modems may be prebuilt into smartphones, mobile phones, and personal data assistants (PDAs), or they may be distributed in the form of USB, serial or wireless firewall modems. A 5G modem brings a 5G network into the building. Typically, broadband networks only provide access for mobile devices, but with a 5G modem, users can connect at-home or at-work devices to a 5G broadband network. This gives the end user 5G speeds without the need for any traditional cabling.
Segment Overview
The 5G modem market is segmented into Modem Type, Mode, and Application.
By modem type, the 5G modem market is classified into internal/integrated and external. The external segment was the highest revenue contributor to the market in 2021.
By mode, the 5G modem market is bifurcated into single-mode and multimode. The single-mode segment was the highest revenue contributor to the market in 2021.
By application, the 5G modem industry is divided into mobile and tablets, wearable, automotive, virtual reality, and others. The mobile and tablets segment was the highest revenue contributor to the market in 2021.
Region-wise, the 5G modem market trends are analyzed across North America (the U.S, Canada, and Mexico), Europe (UK, Germany, France, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
The surge in the adoption of connectivity, digital applications, and wearable technology is expected to drive growth for players in the 5G modem market. Moreover, upgrading existing supporting infrastructure, including modems, towers, and other supporting infrastructure, is projected to present significant opportunities for new players. The 5G modem market growth is expected to drive significant opportunities as the adoption of 5G technology such as 5G modem routers, 5G wifi modems, and others has received positive signals in several local markets worldwide.
Furthermore, emerging applications, business models, and declining device costs have driven IoT adoption, increasing the number of connected devices and endpoints globally. 5G offers massive machine-type communication (mMTC), poised to support billions of network-enabled devices to be wirelessly connected. Modern communication systems already serve several MTC applications.
However, high investment and technological & infrastructure challenges in the implementation of the 5G network, and privacy and security concerns are some of the prime factors that restrain the market growth.
The outbreak of COVID-19 significantly impacted the growth of the outdoor manufacturing and industrial sectors in 2020; however, the surge in deployment of advanced networking and communication technologies witnessed relatively high growth during 2021. Nevertheless, the market was principally hit by several obstacles created amid the COVID-19 pandemic such as lack of skilled workforce availability and delay or cancelation of projects owing to partial or complete lockdowns across the globe. In contrast, the rise in penetration of Internet of Things hardware across industrial, manufacturing, and commercial sectors is expected to drive the growth of the 5G modem market share during the forecast period.
Significant factors that impact the growth of the 5G modem market size include a rise in demand for high-speed internet and large network coverage. Moreover, the increase in demand for 5G modem like Qualcomm x65 for mobile broadband operational frequency is expected to drive the 5G modem market growth. However, high investment and technological & infrastructure challenges in the implementation of 5G network might hamper the growth of the market. On the contrary, rise in government initiatives for building smart cities in Asia-Pacific sets potential growth opportunities for the 5G modem industry.
Competitive Analysis
The key players profiled in the report include Samsung Electronics Co. Ltd, Intel Corporation, Huawei Technologies Co., Ltd., Spreadtrum Communications, MediaTek Inc., Infineon Technologies AG, Nokia Corporation, Qorvo, Inc., Xilinx, and Qualcomm Technologies are provided in this report. The major providers are inclined to invest heavily in product innovation, research, and development in energy and smart infrastructure.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the 5G modem market analysis from 2021 to 2031 to identify the prevailing 5G modem market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- An in-depth analysis of the 5G modem market overview assists in determining the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes an analysis of the regional as well as global 5G modem market trends, key players, market segments, application areas, market forecast, and market growth strategies.
5G Modems Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 10.8 billion |
 Growth Rate | CAGR of 29.1% |
 Forecast period | 2021 - 2031 |
 Report Pages | 277 |
 By Modem Type |
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 By Mode |
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 By Application |
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 By Region |
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 Key Market Players | Nokia Corporation, Huawei Technologies Co., Ltd., Qualcomm Technologies, Samsung Electronics Co Ltd, Xilinx, Qorvo, Inc., Infineon Technologies AG, Intel Corporation, Spreadtrum Communications, MediaTek Inc |
Analyst Review
The 5G modems market exhibited development potential across different sectors including consumer electronics, automotive and the telecom industry. Furthermore, rise in number of mobile phone users, along with increase in adoption rate of 5G network drive the demand for wireless communication devices and services.
The 5G modems market is highly competitive, owing to the strong presence of existing vendors. 5G modems market vendors are investing substantially in R&D and skilled workforce and are anticipated to gain a competitive edge over their rivals. The competitive environment in the market is expected to further intensify with an increase in technological innovations, product extensions, and different strategies adopted by key vendors.
The demand for 5G modems in consumer electronics is estimated to expand at a rapid pace during the forecast period due to an increase in government policies and regulations promoting the deployment of 5G networks. Moreover, urbanization and smart city initiatives around the world have increased the need for efficient and reliable energy management, which has created opportunities for the 5G modems market.
The key players profiled in the report include 5G modems market players, such as Samsung Electronics Co Ltd, Intel Corporation, Huawei Technologies Co., Ltd., Spreadtrum Communications, MediaTek Inc, Infineon Technologies AG, Nokia Corporation, Qorvo, Inc., Xilinx and Qualcomm Technologies.
The major application of 5G modems is in Mobile and Tablets.
Asia-Pacific is the largest regional market for 5G Modems.
The global 5G modems market was valued at $845.3 million in 2021
Samsung Electronics Co Ltd, Intel Corporation, Huawei Technologies Co., Ltd. and others are the top companies to hold the market share in the 5G modems market.
The 5G modems market is expected to grow at a CAGR of 29.13% from 2022-2031.
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