USD 16.04 billion
Report ID:
SQMIG45I2067 |
Region:
Global |
Published Date: June, 2024
Pages:
162
|Tables:
121
|Figures:
77
Global 5G Chipset Market size was valued at USD 16.04 Billion in 2022 and is poised to grow from USD 19.54 Billion in 2023 to USD 94.63 Billion by 2031, growing at a CAGR of 21.8% in the forecast period (2024-2031).
5G technology has attracted significant interest due to its promised benefits within industrial environments, particularly with the advancements introduced in 3GPP's Release 16. Our analysis revels that the key capabilities such as 99.999% network availability and reliability, sub-10 milliseconds latencies, and support for time-sensitive networking have made 5G an appealing option for industrial players aiming to digitize operations in the context of Industry 4.0. For instance, ABB and Ericsson have partnered to support Thailand's Industry 4.0 ambitions, enhancing flexible production through automation systems and wireless communications. This collaboration focuses on ABB's Robotics & Discrete Automation, Industrial Automation, and Motion business areas, leveraging the ABB Ability Platform Services. Key initiatives include the deployment of 5G-enabled augmented reality lenses for remote commissioning in manufacturing environments and globally connected NB-IoT motors and drives through Ericsson's Communication Service Provider partners and IoT-Accelerator platform.
The Global 5G chipset market is an emerging and fast-growth segment that is crucial in the emergence and availability of next generation wireless technology. Such market includes a wide variety of chipsets that are employed in 5G-enabled devices and infrastructure. Devices can now transmit data faster, have low latency and maintain high connectivity for different applications. With global connectivity and data-driven technology gaining momentum, the request for 5G integrated circuits is only expected to soar. The goal of the chipset market for 5G is to bring the essential equipment to support the popularization of 5G technology across diverse industries. This ranges from ICT (Info and Communications Technology), automotive, healthcare, entertainment, and smart cities, among others. 5G chipsets represent the turning point for devices and systems of all kinds, since now they can be easily interconnected, which leads to new solutions and more efficiency, both on the personal and the professional level. A multiplicity of elements is the main force of the global 5G chipset market to go forward. First, we need to consider the growing needs for services like high-speed internet and data services which are driving the adoption of 5G technology. The impulsion of digital transformation in fields of the medical care and manufacturing industry also create the market volume.
Additionally, our study also reveals that the market is constricted by a few factors that can hinder its development. One of those factors is the high cost attributed to 5G infrastructure and device making. The issues in the 5G customized chipset market are the rapid technology development and the supply chain difficulties. Producing chips that have ability to tackle the requirements of 5G technology, including more data speed and less power consumption, is a large task that needs significant R&D. However, the development of these technologies faces a lot of challenges. On the other hand, there are a lot of 5G chipset opportunities in the market. Take for example those relationships among manufacturers of chipsets and telecommunications infrastructure which will result in better roll out of 5G networks.
US 5G Chipset Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 16.04 billion
Largest Segment
Type
Fastest Growth
RFICs
Growth Rate
21.8% CAGR
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Global 5G chipsets market is segmented based on type, end user, and region. By Type, the market is segmented into Modems, and RFICs. The RFICs is further segmented into RF transceiver, and RF FE. By end user, the market is segmented into telecommunication infrastructure (macro cells, small cell, customer premises equipment (CPE)), mobile devices (smartphones, tablets & laptops, mobile hubs, robots/drones, wearables, AR/VR devices), non-mobile devices (IoT gateways, surveillance cameras), and automobile. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Type
Based on SkyQuest analysis, we found that the RFICs (Radio Frequency Integrated Circuits) segment is the largest segment in the global 5G chipset market. This segment is a key sector which gained the market share because it is a vital component in 5G network infrastructure buildup. RFICs are, hence, the heart of such communication networks, without which there would be no way to ensure smooth communication between devices and networks, and, therefore, no data could be transmitted or received. This one is gaining from the growing implementation of 5G networks across the globe, most importantly in the USA, China and South Korea. As stated in marketing studies, the RFICs are estimated to take a big part of the market, where their value is predicted to exceed billions of dollars in the nearest future.
Additionally, the modem segment was registered as one of the fastest segments in the global 5G chipset market. Based on our analysis the massive usage of 5G enabled devices like smartphones, tablets, and IoT devices has accelerated the market growth over the forecast year. Modem allow for HSP and low LAT that are so important for the efficient operation of the 5G apps. The segment is currently undergoing strong growth as more and more clients are embracing sophisticated data services and applications. The growth in smart cities and the spread of IoT ecosystems are the factors that lead to the expansion of the modem segment. Therefore, these factors are expected to drive the market over the forecast year.
Analysis by End Use
Our study reveals that the telecommunication Infrastructure segment stand out as the largest and most pivotal domain within the global 5G chipset market. With the 5G network's expansion and need for high-tech chipsets to power its complex structure, lightning-fast data transfer, ultra-low latency, and seamless connectivity, telecommunication infrastructure is at the forefront of cutting-edge technology to achieve this. The high-end performance market is always hungry for high-performance chips. In fact, it is one of the biggest players in the market segment and the greatest revenue generator. The skyrocketing of the demand for 5G chipsets due to the unceasing quest of providers for faster and more efficient connectivity is something that forms a solid foundation of the market, thus making it enduring and prosperous.
The fastest-growing segment within the 5G chipset market is the Mobile Devices sector. The consumer interest in the most recent generation of multi-purpose smartphones, tablet and wearable gadgets has been the basis of the segment's increased demand for top-of-the-range 5G chipsets. Since consumers are now looking for ultra-fast internet speeds and effortless communication, on their gadgets, manufacturers are in a scramble to incorporate latest chipsets to meet these advancing standards. The mobile devices market is a key segment in the 5G chipset industry benefiting from the growing proliferation of 5G-enabled mobile devices and the relentless pursuit of innovation in the consumer electronics space. This promises unlimited potential and the market is expected to experience an exponential growth in the future.
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Based on SkyQuest in-depth study, we found that the North America market is leading the global 5G chipset market and can be attributed to its excellent telecommunication infrastructure and the fact that the region has been quick to make use of advanced technology first. The U.S. and Canada regions have benefited from several major telecommunications and 5G chipset companies becomes a solid intrinsic for the market growth in this region. Apart from that Ma governmental policies and investments in 5G sector essentially are a kindle that serves for market expansion all over the US. The urgent need for the high-speed Internet and the 5G connectivity in both the automotive and the healthcare sectors and entertainment are major reasons contributing to their leadership in the 5G chipset market.
Asia Pacific area is observed to be the fastest growing 5G chipset market, this phenomenon is happening largely because of the rapid growth in telecommunications infrastructure in countries such as Japan, China and Singapore. Developed countries have been rapid to deploy 5G networks and thus act as a catalyst for innovation in 5G technologies. Urbanization in this region not only bring high population density but also becomes a factor for better mobile networks due to the increased demand for more advanced technology. Besides, the dominance of 5G chipset market leaders and continuous investments in research and development initiatives in countries like China and South Korea have amplified the speed of growth in this region. The encouragement of innovation should logically bring 5G technology up to the status of major platform capable of catering to innovative application needs in this area.
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5G Chipset Market Drivers
Increasing Demand for High-Speed Connectivity:
5G becomes more important due to the demand of high-speed internet and the spread of the Internet of things devices, that is why chipsets is the required element. With an increase in 5G deployment around the world, the need for enhanced chipset with capacity to process 5G data rates (faster) is expected to spike.
Expansion of Smart Devices:
Restraint
High Cost of Deployment and Maintenance:
Security Concerns and Regulatory Challenges:
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The 5G chipset market is characterized by intense competition as companies strive to capitalize on the rapid adoption of 5G technology across the globe. Leading players in the market are at the forefront of innovation, developing high-performance chipsets for various applications including smartphones, automotive, IoT, and networking infrastructure. Qualcomm has the lion's share with its Snapdragon series, but MediaTek is significant too, aiming to deliver powerful and cheap chipsets simultaneously. While Samsung Exynos is also a very important part of the market in Asia, especially because of its Asia base. Huawei, which is known for its Kirin chipsets, even though it is facing international trade bans, continues in the process of developing its innovation. The 5G solutions that Intel are devoted to the markets of infrastructure and data centre. Another prominent player like Unisoc and Marvell Technology Group whose stock has been steadily increasing is also looking to capture the market. The market is underpinned by the several factors namely the rising demand for high-speed internet connectivity, the expansion of applications of IoT and the development of smart cities and autonomous vehicles. The development of the 5G market over the next year is likely to lead to a more intensified competitive environment where companies will allocate significant resources to innovative research and development to stay ahead of the technological curve.
Top Players in the Global 5G Chipset Market
5G Chipset Market Recent Developments
In March 2024, Qualcomm has announced the upcoming launch of a new chipset, likely to be the Snapdragon 8s Gen 3, positioned as a flagship product. This advanced System-on-Chip (SoC) is expected to drive market growth by enhancing the performance and capabilities of next-generation devices. With its cutting-edge technology, the Snapdragon 8s Gen 3 will enable faster processing speeds, improved energy efficiency, and enhanced connectivity features, making it highly attractive to manufacturers and consumers alike. This innovation is set to fuel demand for high-performance devices in sectors such as smartphones, tablets, and IoT, thereby significantly expanding Qualcomm's market presence and influence.
In March 2024, Qualcomm has announced plans to launch a 5G smartphone priced under Rs 10,000 by the end of the year. The company confirmed its collaboration with telecom companies and manufacturers in India to develop this affordable smartphone. This initiative is poised to significantly expand the market by making 5G technology more accessible to a broader consumer base, driving the adoption of 5G services, and stimulating growth in the smartphone and telecom sectors.
In February 2024, HFCL has partnered with Taiwanese fabless chipmaker MediaTek to integrate the MediaTek T750 chipset into its 5G indoor consumer premises equipment (CPE). This collaboration will significantly enhance the performance and capabilities of HFCL's 5G CPE, ensuring faster and more reliable connectivity for consumers. By leveraging MediaTek's advanced chipset technology, HFCL can offer superior 5G solutions, driving market growth by meeting the increasing demand for high-speed internet access in indoor settings. This strategic partnership positions HFCL to capitalize on the expanding 5G market and reinforces its competitive edge in providing cutting-edge communication solutions.
Emergence of mmWave Technology: The higher bandwidth usage of millimeter wave (mmWave) technology in 5G chipset is one of the reasons why the 5G technology is the fastest and the most widely available one. This trend is forecasted to retain its stability since higher speed data transfer needs are being increased in the future.
Integration of AI and Edge Computing: The AI and edge computing convergence with the 5G is a significant one among the prospects of market. Using these technologies, 5G chipsets are being propelled to peak their performance and capability, offering an exciting prospect of new services, such as automated vehicles, and real-time data processing.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global 5G chipset Market analysis, the 5G chipset market is experiencing significant growth due to the rapid deployment of 5G networks globally. Key drivers include increased demand for high-speed data communication, rising adoption of Internet of Things (IoT) devices, and the expansion of smart city projects. The market is characterized by technological advancements in 5G chipsets, leading to more efficient and powerful solutions. Major industry players are investing in research and development to innovate and stay competitive. North America and Asia-Pacific are leading the market due to early 5G adoption and strong presence of semiconductor companies. Challenges include high infrastructure costs and regulatory hurdles. However, these challenges are expected to diminish as the technology matures. The 5G chipset market is projected to grow further as 5G networks become mainstream, with applications in various industries such as telecommunications, automotive, and consumer electronics, driving demand for 5G-enabled devices and services.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 16.04 Billion |
Market size value in 2031 | USD 94.63 Billion |
Growth Rate | 21.8% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the 5G Chipset Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the 5G Chipset Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the 5G Chipset Market:
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REQUEST FREE CUSTOMIZATION5G Chipset Market size was valued at USD 16.04 billion in 2019 and is poised to grow from USD 19.28 billion in 2023 to USD 92.05 billion by 2031, growing at a CAGR of 21.8% in the forecast period (2024-2031).
In terms of the competitive landscape, a few companies have dominated this market due to their strong product portfolios and key strategic decisions. To strengthen their position in the market for 5G chipsets, companies are employing a variety of strategies, including new product development and strategic collaborations. Simultaneously, key smartphone manufacturers, such as Apple Inc., are focusing on vertical integration to expand their product portfolios with 5G-enabled devices. Market incumbents are focusing aggressively on developing new and innovative products, expanding overall product portfolios, and gaining a significant market share. 'Qualcomm Technologies, Inc.', 'Samsung Electronics Co., Ltd.', 'MediaTek Inc.', 'Intel Corporation', 'Xilinx Inc.', 'Infineon Technologies AG', 'Huawei Technologies Co. Ltd.', 'Broadcom Inc.', 'Qorvo Inc.', 'Nokia Corporation', 'Ericsson AB', 'Fujitsu Limited', 'Analog Devices Inc.', 'Murata Manufacturing Co., Ltd.', 'NXP Semiconductors N.V.', 'Marvell Technology Group Ltd.', 'Texas Instruments Inc.', 'ZTE Corporation', 'Renesas Electronics Corporation', 'Unisoc Communications Inc.'
The speed and reliability of 5G are expected to have a significant impact on machine-to-machine (M2M) and Internet of Things (IoT). Better connectivity for smooth communication and low power requirements are key reasons for the increased adoption of new M2M technologies. To achieve effective M2M communication, mobile networks' existing capacity must be able to handle billions of nodes that are expected to ascend in the coming years. The network capacity is currently insufficient to handle M2M and human-based communications, as well as their various communication patterns such as latency time. As a result, a next-generation cellular network for mobile communication is required, with hyper-connectivity and increased bandwidth (e.g., 5G network). M2M communication technology will be widely used in heavy manufacturing and process industries (e.g., food industries) to improve process efficiency and reduce human interference with machines. As a result, M2M communication is expected to drive the 5G chipset market.
Intelligent cities and smart infrastructure are vital aspects of IoT applications. As organizations already utilize IoT to monitor equipment efficiency, the tendency to use IoT is likely to also increase requirements for 5G chipsets.
The Asia Pacific region held the highest share of global 5G chipset market in 2021. As a result, 5G smartphone investments have grown in the region. Over the forecast period, the growing preference for smart manufacturing in emerging economies such as China and India is expected to drive the adoption of 5G chipset components.
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Report ID: SQMIG45I2067