The Global 5G Chipset Market was valued at USD 27.54 Billion in 2022 and is projected to reach USD 68.09 Billion by 2030, registering a CAGR of 19.83% for the forecast period 2023-2030.
A 5G chipset is an improved part of network infrastructure and customer premises equipment that allows the end user to create a wireless network according to 5G network specifications. The proliferation of internet-connected devices is driving up demand for 5G, a completely new wireless infrastructure. Furthermore, new levels of efficiency and performance are anticipated from the next-generation, least expensive 5G chipset solution, opening up new user experiences and connecting previously unconnected industries. Furthermore, the 5G chipset market outlook is driven by the growing need for 5G network infrastructure solutions, which enable increased efficiency and cost reduction by facilitating the interconnection of new industries. The proliferation of M2M/IoT connections is expected to drive significant growth in the 5G chipset market over the forecast period. The market is expanding due to the growing demand for large network coverage and high-speed internet. Furthermore, throughout the projected period, the market for 5G chipsets is anticipated to grow at a faster rate due to the rise in demand for mobile broadband operating frequencies.
- 2022: USD 27.54 Billion
- 2030: USD 68.09 Billion
- CAGR (2023-2030): 19.83%
5G Chipset Market Dynamics
Drivers Propelling the Demand for 5G Chipset include
Increasing use of M2M communication technology : Machine-to-machine (M2M) and Internet of Things (IoT) are anticipated to be greatly impacted by the speed and dependability of 5G. New M2M technologies are being adopted more frequently because of their low power requirements and improved connectivity for seamless communication. To achieve effective M2M communication, the current capacity of mobile networks needs to handle billions of nodes that are expected to ascend in the coming years. The network capacity is currently unable to handle human-based and machine-to-human (M2M) communications, nor their various communication patterns (e.g., latency time). This calls for the need for a next-generation cellular network (such as a 5G network) with greater bandwidth and hyper-connectivity for mobile communication. In heavy manufacturing and process industries (food, for example), M2M communication technology will be extensively utilized to improve process efficiency and minimize human interference with machinery. In keeping with this pattern, Verizon announced that Indianapolis will serve as the last hub for its planned multi-city rollout of 5G services in the second half of 2018. The corporation declared that by merging 5G technologies with data analytics, local governments would be able to address issues like traffic, inequality, crime, healthcare, pollution, and education. By 2025, 30 smart cities globally are anticipated to exist, with half of those cities located in North America or Europe. International investments are funding these initiatives; the OECD projects that, when all urban city infrastructure projects are combined, will come to approximately USD 1.8 trillion between 2010 and 2030. It is expected to open up a number of growth opportunities for 5G technology. Thus, the market for 5G chipsets is anticipated to be driven by M2M communication.
For instance, in October 2021, according to Merck, a leading science and technology company, and Siemens, an innovation leader in automation and digitalization, Germany, plan to develop and implement solutions that offer unprecedented levels of digital trust in M2M connected industrial value chains. This would help industrial customers to comply with stricter regulations in the value chain in different countries and enable disruptive business models in a variety of industrial sectors, ranging from the food and beverage, pharmaceuticals and electronics industries to the automotive industry.
Growing Need for Broad Network Coverage and High-Speed Internet with Low Latency and Power Consumption: The number of people utilizing smartphones has increased overall, partly due to the decrease in the cost of mobile devices. This year, consumers are expected to spend USD 92.1 billion worldwide on mobile applications. Furthermore, it is projected that mobile games will account for more than three-quarters of these revenues, with non-gaming apps expected to account for 24%. There is also more high-quality video and audio content available. The most common way to access and consume internet media, including business apps, file sharing, live video streaming, and audio streaming, is through mobile smartphones, which have supplanted other digital devices in this regard. But not all of these applications can be fully supported by LTE technologies as they exist today. In a 4G network, internet connection speeds usually vary from 2 to 6 Mbps. With smartphone apps consuming large amounts of data, there is a growing need for speeds faster than 10 Mbps, which is why 5G is receiving more attention. More than 10 megabits per second of internet speed is anticipated with 5G. This has contributed significantly to 5G's increasing popularity since it offers incredibly fast internet speeds, all-encompassing coverage, and low latency. The market is expanding for these reasons.
For instance, in November 2022, according to Lumen, Lumen Technologies is aggressively expanding its premier residential and small business fiber internet service, Quantum Fiber, in more than 30 cities and metro areas in the U.S. This expansion delivers millions of new consumers access to the company's existing and growing fiber footprint.
In November 2022, During the Snapdragon Summit 2022, Qualcomm Technologies, Inc. introduced its latest premium mobile platform, Snapdragon 8 Gen 2. The Snapdragon 8 Gen 2 Mobile Platform will define a new standard for connected computing, intelligently engineered with groundbreaking AI across the board to enable extraordinary experiences. This new mobile platform will be adopted by global OEMs and brands including ASUS Republic of Gamers, HONOR, iQOO, Motorola, nubia, OnePlus, OPPO, REDMAGIC, Redmi, SHARP, Sony Corporation, vivo, Xiaomi, XINGJI/MEIZU, and ZTE, with the first commercial devices expected by the end of 2022.
In June 2023, Samsung Electronics, the world leader in advanced memory technology, today announced its development of the industry’s first 512-gigabyte (GB) Compute Express Link (CXL) DRAM, taking an important step toward the commercialization of CXL which will enable extremely high memory capacity with low latency in IT systems.
5G chips are expensive for mobile devices : Manufacturers and makers of mobile devices incur higher initial deployment costs as a result of the high cost of 5G chips. This expense is incurred when mobile devices such as tablets and smartphones are equipped with 5G capabilities. The price of 5G chipsets contributes significantly to the total cost of manufacturing 5G-capable devices. This consequently influences the devices' retail price, which may make them unaffordable for a sizeable segment of the consumer market. Exorbitant chipset expenses could limit resources dedicated to research, development, and innovation in the 5G chipset industry. This may limit the rate of improvements and optimizations and slow down the advancement of technology. Resources for research, development, and innovation in the 5G market may be limited due to the high cost of 5G chipsets. This may slow down the rate of technical development and 5G chipset improvements, which would further impede market expansion. Because of their higher frequency bands and extra features, 5G chipsets are more complicated to make than 4G chipsets. The cost of production goes up because of this complexity. Compared to 4G chipsets, the production volume of 5G chipsets is still small because 5G technology is still relatively new. As a result, there is less room for economies of scale, and production costs remain high. Advanced materials and technologies, like 7nm and 5nm process nodes, are needed for 5G chipsets.
For instance, in January 2020, Prices of smartphone chipsets that support 5G are likely to be 50% more expensive than the 4G ones available currently, according to two executives from smartphone companies.
RF devices operating at higher frequencies present design challenges : Using millimeter-wave (mm Wave) frequencies, 5G technology operates at higher frequency bands than earlier generations. Because higher frequencies bring special qualities and technological challenges that require careful consideration in RF device design, there is a design challenge. Shorter wavelengths are associated with higher frequency signals, like those found in the mm Wave spectrum. This leads to problems with the range and propagation of the signal. Higher frequency signals are more vulnerable to obstructions like buildings and vegetation and are more likely to be absorbed by atmospheric gases; to get around these limitations, advanced design techniques are needed. Ensuring standardization and compatibility across various devices and manufacturers becomes increasingly important as the 5G landscape develops. Among the design challenges are ensuring interoperability across the diverse ecosystem of 5G-enabled devices and meeting industry standards.
Growth in the Requirement for Mobile Data Services : Service providers have faced difficulties in providing high-speed broadband coverage that is required. Because tall trees and densely packed forests can impede mobile wireless broadband connectivity, one of the biggest challenges when developing broadband fiber infrastructure is the unpredictable nature of the soil composition. Furthermore, the US Department of Transportation reports that the average cost of installing fiber is USD 27,000 per mile, which is the highest price for the deployment of fixed broadband. Due to its difficult engineering and much slower service rates compared to FTTx alternatives, fixed wireless was first viewed as an expensive and unstable broadband delivery technology. Since the advancement of the technology, fixed wireless has emerged as an additional fiber-based access option that enables providers to offer far faster broadband than what is considered standard. About 30 million US households are anticipated to be served by Verizon's initial 5G fixed wireless broadband rollout, which will start in California. Similarly, in select American markets, AT&T and Charter hope to begin 5G fixed wireless broadband trials. 5G fixed wireless trials are being conducted throughout Europe by Orange, Elisa, and telecom infrastructure provider Arqiva. These patterns demonstrate the market's desire for 5G wireless broadband.
|Market Size in 2022
|USD 27.54 Billion
|Market Forecast in 2030
|USD 68.09 Billion
|Compound Annual Growth Rate (CAGR)
|Revenue (USD Million) and Volume (Kilo Tons)
|By Type, By Operating Frequency, By Processing Node, By Deployment Type, By Vertical Outlook & By Region
|By Operating Frequency
|2018 - 2022
|2023 - 2030
Segment Analysis of the 5G Chipset Market
The 5G Chipset Market is segmented by type, operating frequency, processing nodes, deployment type, vertical outlook, and region.
The RFICs segment held the largest market share in 2022 : By Type is sub segmented into modems, RFICs, others. The RFICs segment accounted for highest market share 44% in global 5G chipset market for 2022. A significant driver of the market expansion is the growing need for RF transceiver integrated circuits in smartphones. Furthermore, the increase in mobile data traffic is driving the need for faster data rates and higher bandwidth, necessitating the development of more sophisticated RF transceiver integrated circuits (ICs) that can support a larger range of frequency bands and modulation schemes. The growing complexity of smartphones, which necessitates the use of more RF transceiver integrated circuits (ICs) to support multiple antennas for features like Wi-Fi, Bluetooth, GPS, and NFC, is also a major factor driving the growth of the segment.
On the other hand, the modems segment has the significant market share over the forecast period, due to the growth of this segment is largely due to the incorporation of 5G modems into system-on-chip (SoC) designs. Device makers' design processes are made simpler by this integration, which also boosts performance and lowers power consumption. In addition, the need for high-quality video streaming and low-latency applications like virtual reality and gaming is propelling the shift towards more sophisticated modem designs that can handle faster data rates and lower latency.
By Operating Frequency
The Sub-6 GHz segment was the leading segment in 2022 : By Operating Frequency, which is divided into sub-6 GHz, 24-39 GHz, above 39 GHz. the sub-6 GHz segment accounted for largest share 55% in global 5G Chipset market in 2022. One of the main factors driving the segment growth is the increasing use of Sub-6 GHz technologies to provide extensive coverage in both urban and rural areas. These technologies can penetrate higher mmWave bands with greater range. Sub-6 GHz 5G chipsets are made to work with the lower frequency bands required for 5G networks. A variety of cutting-edge features and technologies are often included in these chipsets to enhance user experience and network performance. Massive MIMO antenna systems, which allow the use of multiple antennas to improve network capacity and performance, are one important feature of 5G chipsets for Sub-6 GHz.
24-39 GHz segment is anticipated to register rapid growth in forecast period, one of the main reasons driving the segment growth is the increasing use of Millimeter-Wave (mmWave) technology, which uses frequencies in the 24-39 GHz band to provide ultra-high-speed 5G connections. Data rates of several gigabits per second are made possible by this technology, which is essential for applications like virtual reality, augmented reality, and streaming high-definition video. Simultaneously, a key driver of the segment growth is the increasing interest in combining mmWave RF components and 5G modems onto a single chip, which can aid in lowering power consumption and streamlining the design process for device makers.
By Processing Node
The 7 nm segment was the leading segment in 2022 : By Operating Frequency, which is divided into 7 nm, 10 nm, others. the 7 nm segment accounted for largest share 50% in global 5G chipset market in 2022. One of the main factors driving the growth of this market is the increasing use of the 7 nm technology node in chip design due to its lower power consumption, better switching performance, and higher density. Global manufacturers initially concentrate on using a 7nm processor node to produce 5G chipset components. Leading players in the market, including MediaTek Inc., Huawei Technologies Co. Ltd., Intel Corporation, and Qualcomm Incorporated, are first focusing on developing 7nm processing node-based 5G chipset components. Furthermore, compared to larger process nodes, the 7nm process offers better performance, which is crucial for fulfilling the strict specifications of 5G networks, which include fast data rates, low latency, and dependable connectivity.
10 nm segment is anticipated to register rapid growth in forecast period, because of the 10nm process' capacity to combine multiple transistors onto a single chip, enabling the creation of 5G chipsets that are more potent and energy-efficient. Supporting cutting-edge functions like Massive MIMO and beamforming, which call for the integration of multiple transistors onto a chip, is crucial. In order to reduce the size and weight of devices, it is crucial that smaller and more compact chipsets be developed, which is made possible by the 10nm process. Furthermore, compared to larger process nodes, the 10nm process offers better power efficiency, which is crucial for battery-powered mobile devices. Longer battery life and better device performance are made possible by this.
Asia Pacific occupied the largest market share in 2022:
Asia Pacific has the largest revenue market share 40% in 2022, This can be attributed to the quickening adoption of high-speed connectivity and cutting-edge technologies like cloud computing, artificial intelligence, and the Internet of Things. By enabling faster and more dependable connectivity that can support a wide range of applications and services, 5G chipsets can help meet this demand. New use cases and applications in fields like smart cities, healthcare, education, and transportation are being developed as a result of this trend. Furthermore, a number of the top producers of 5G chipsets are based in the Asia Pacific area, which is stimulating competition and innovation in the local market.
On the other hand, North America accounted for the significant share over the forecast period, Emerging technologies that require high bandwidth and low latency, like virtual reality, augmented reality, and autonomous vehicles, are growing thanks to the rollout of 5G networks in North America. Smart cities, smart industries, and smart homes are receiving a lot of investment in the United States. Customers in the US are growing more interested in high-graphics online gaming at the same time. Furthermore, the nation is emerging as an early adopter of intelligent transportation infrastructure and self-driving cars. It is anticipated that all of these developments will increase North American demand for 5G chipset components.
List of the prominent players in the 5G Chipset Market:
- Huawei Technologies, Inc
- MediaTek Inc
- Intel Corporation
- Infineon Technologies AG
- Qualcomm Technologies, Inc
- Unisoc Communications Inc.
- Qorvo Inc.
- Anokiwave Inc
Segmentation Analysis of the 5G Chipset Market
- Sub-6 GHz
- 24-39 GHz
- Above 39 GHz
- 7 nm
- 10 nm
- Telecom Base Station Equipment
- Connected Vehicles
- Connected Devices
- Broadband Access Gateway Device
- Energy and Utilities
- Media and Entertainment
- IT and Telecom
- Transportation and Logistics
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the 5G Chipset Market:
The exponential increase in COVID-19 cases worldwide has had a significant impact on the electronic and semiconductor industry vertical. The preference for next-generation chipset products is rising due to two factors: the rapidly evolving global IT and telecommunications industries and the ever-expanding global market for these products. However, lockdowns enforced by various governments across the world are having a significant impact on the work-from-office culture across a number of industries. During COVID-19, a worldwide lockdown forced people to stay indoors, which led to a rise in the popularity of work-from-home and bring-your-own-device policies. The increase in demand for 5G enabled chipsets in the global market can be attributed to this factor. Additionally, the majority of businesses began implementing emerging technologies like artificial intelligence and the Internet of Things during the COVID-19 outbreak. High-speed, low-latency network connections are becoming more and more necessary due to the expanding use of these technologies, and this can only be achieved by successfully installing a 5G chipset in the electronic device. For example, the new Qualcomm 315 5G IoT modem-RF system was introduced by Qualcomm Inc., a provider of network and telecommunication solutions, in May 2021. This 5G chipset-enabled gadget was created specifically to enhance IoT device performance for end users. But in the post-pandemic period, the need for cutting-edge technology, the rapid expansion of the 5G network, and the growing popularity of work-from-home options all contributed to the expansion of the global market.