5G Chipset Market Forecast and Growth 2031

The 5G chipset market size is expected to grow from US$ 38.56 billion in 2023 to US$ 166.38 billion by 2031; it is estimated to grow at a CAGR of 20.1% from 2023 to 2031. Increased integration of functionalities to reduce power consumption and size advancement in mmWave technology for faster data rates are likely to remain key 5G chipset market trends.

5G Chipset Market Analysis

The 5G chipset market has witnessed significant growth in recent years, driven by technological advancements, rising demand for high-speed internet, and the increasing demand for industrial automation.

There is a rise in demand for mobile subscribers and the adoption of smartphones for various applications such as mobile gaming, home broadband, video calling, high-definition movies & TV, mobile health services, augmented shopping experience, and global positioning system (GPS) services that drive the demand for 5G networks which further drives the demand for 5G chipset. The rising use of mobile phones for services, as mentioned earlier, is increasing the adoption of mobile subscribers and smartphones in the region. For instance, according to GSMA, North America recorded 84% subscriber penetration in 2021 and 82% smartphone adoption in the same year.  Thus, the adoption of smartphones for the applications mentioned above generates the need for high-speed network connections such as 5G networks. The rise in 5G infrastructure to meet the growing demand for highly efficient networks has driven the adoption of components required for 5G infrastructure, which further fuels the 5G chipset market size.

5G Chipset Market Overview

5G is the fifth-generation technology standard for cellular networks in the telecommunication industry. It is the successor to 4G technology that provides connectivity to most current mobile phones today. Various mobile phone companies started to deploy the 5G technology worldwide in 2019. This new solution provides high-speed networks with a peak speed of 10 gigabits per second (Gbit/s) and only one user in the network. Compared to a 4G network, a 5G network provides higher bandwidth to deliver faster speeds and can connect more devices. As high-speed connectivity has become an integral part of the digitally evolving ecosystem, the demand for 5G chipsets has increasingly become popular. The rise in the demand for next-generation technologies for the improvement of data speed is gaining traction, which is further driving the 5G chipset market growth for the 5G infrastructure.

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5G Chipset Market: Strategic Insights

5G Chipset Market

• 
  CAGR (2023 - 2031)

  20.1%
• Market Size 2023
  US$ 38.56 Billion
• Market Size 2031
  US$ 166.38 Billion

Market Dynamics

GROWTH DRIVERS

• Rise in government initiatives to develop 5G networks, Growing demand for high speed mobile internet services

FUTURE TRENDS

• Increased integration of functionalities to reduce power consumption and size, Advancement in mmWave technology for faster data rates

OPPORTUNITIES

• Huge growth of the telecommunication industry

Key Players

• Broadcom Inc
• Huawei Device Co Ltd
• Infineon Technologies AG
• MediaTek Inc
• Nokia
• Qualcomm Technologies Inc
• Intel Corporation
• Unisoc Shanghai Technologies Co Ltd
• Samsung

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Modem
• RFIC

Process Node

• Less Than 10 nm
• Between 10-28 nm
• Above 28 nm

 Frequency

• Sub-6 GHz
• 24-29 GHz
• Above 39 GHz

End User

• IT & Telecom
• Manufacturing
• Media & Entertainment
• Healthcare
• Energy & Utilities
• Others

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5G Chipset Market Drivers and Opportunities

Rise in Government Initiatives to Develop 5G Networks to Favor Market Growth

Telecommunication is one of the fastest-growing industries across the globe. The US government and various industries are rapidly adopting 5G technology to achieve its full potential in the country as well as promote digital business transformation. For instance, in September 2023, the US National Science Foundation Directorate for Technology, Innovation and Partnerships (TIP) is challenges associated with 5G communication infrastructure and operations through a US$ 25 million investment to advance five convergent teams. Also, in April 2023, the US Secretary of Commerce announced the launch of the Public Wireless Supply Chain Innovation Fund, which will invest US$ 1.5 billion in the development of interoperable and open networks. With this funding, the future of 5G and next-gen wireless technology can be built by the US and its global allies and partners.

Furthermore, governments of various countries across APAC are taking several initiatives and investing in 5G technology. For example, in September 2023, Malaysia's Prime Minister announced that a switch to a dual 5G network would allow for more effective participation by China's Huawei, providing Malaysia with a balance of technology. In addition, in October 2022, the government launched 5G services in India by boosting the country’s digital transformation and connectivity. The government also unveiled 5G use cases of numerous telecom service providers in health, education, worker safety, and smart agriculture, among others. Similarly, the government launched the native 5G NSA Core, which was developed by the Centre for Development of Telematics (CDoT). The country experienced several technology demonstrations of enterprise chipsets, 5G solutions, and networking equipment developed by Indian telecom MSMEs, start-ups, and large manufacturers. All these developments align with the Prime Minister's vision to promote “Sabka Saath, Sabka Vikas,” “Aatmanirbhar Bharat,” and “Jai Anusandhan.” Therefore, the rise in government initiatives in the development of 5G networks is driving the market growth for 5G infrastructure.

Rise In Machine-To-Machine (M2M) Connections - An Opportunity in the 5G Chipset Market

The rise in machine-to-machine (M2M) connections is playing a substantial role in driving the need for 5G chipset. M2M connections are the direct communication between devices or machines without the need for human intervention. With the rise in the adoption of the Internet of Things (IoT) and connected devices, M2M connections have become progressively significant in assisting the transfer of data between devices, allowing automation, and enhancing operational efficiency. The adoption of 5G networks and building 5G infrastructure is anticipated to speed up further the growth of M2M connections for lower latency, higher bandwidth, and greater reliability than previous generations of mobile networks such as 3G and 4G. This has led to an increasing demand for 5G chipsets that can support the high-speed transfer of data between several connected devices.

5G Chipset Market Report Segmentation Analysis

Key segments that contributed to the derivation of the 5G chipset market analysis are the.

• Based on type, the 5G chipset market is bifurcated into modem and RFIC.
• Based on process mode, the 5G chipset market is segmented into Less than 10 nm, between 10-28 nm, and above 28 nm.
• Based on frequency, the 5G chipset market is segmented into sub-6 GHz, 24-29 GHz, and above 39 GHz
• Based on end users, the 5G chipset market is segmented into IT & telecom, manufacturing, media & entertainment, healthcare, energy & utilities, and others.

5G Chipset Market Share Analysis by Geography

• The 5G chipset market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively.
• North America has established itself as a dominant 5G chipset market. The North American market consists of the US, Canada, and Mexico. The adoption of automation is at the forefront across North American countries. The automation capabilities across the region are rapidly expanding to address various concerns such as operational efficiency, reduced human risk, and minimized production time. The major industries in North America that are integrating automation into their business processes include retail, oil & gas, utilities, agriculture, manufacturing, healthcare, and education. With the rise in the adoption of automation across these industries, the integration and demand for 5G technologies have also increased, which is further fueling the 5G chipset market.

5G Chipset Market Report Scope

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5G Chipset Market News and Recent Developments

The peer to the peer insurance market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the 5G chipset market:

• In February 2024, Viettel Group announced its 5G chipset and Vi An – AI Human to the global technology community. The 5G DFE chip was developed entirely by Viettel's in-house semiconductor engineers. Viettel's 5G DFE chip boasts a computing capability of 1 trillion operations per second, meeting the 3GPP's standard for 5G

(Source: Viettel Group, Press Release)

• In September 2023, Qualcomm announced an agreement with the tech giant Apple to supply 5G chips until at least 2026.

(Source: Qualcomm, Press Release)

5G Chipset Market Report Coverage and Deliverables

The "5G Chipset Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles