5G Chipsets Market
The market for 5G Chipsets was estimated at $38.3 billion in 2023; it is anticipated to increase to $148 billion by 2030, with projections indicating growth to around $389 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global 5G Chipsets Market Outlook
Revenue, 2023
$38.3B
Forecast, 2033
$264B
CAGR, 2024 - 2033
21.3%
The 5G Chipsets industry revenue is expected to be around $56.4 billion in 2024 and expected to showcase growth with 21.3% CAGR between 2024 and 2033. The use of 5th generation chipsets plays a role in advancing mobile networks with faster data speeds and enhanced connectivity for devices in various industries and sectors. By 2021 the market value of 5th generation chipsets was around USD 38 billion; it is projected to hit USD 148 billion by 2030 and possibly soar to USD 389 billion by 2035 at a growth rate of about 21%. This notable expansion is fueled by the spread of 5th generation networks and the growing need for speedy connections, in IoT and self operating systems.
Specialized 5th generation (5G) chipsets are crafted to manage the data processing and communication needs of 5G networks for improving the functionality of devices such as phones and Internet of Things (IoT) devices.They come in formats like modems and mmWave processors to cater to various frequency bands and deployment scenarios.The bandwidth and minimal delay of 5G chipsets play a crucial role in facilitating instant communication across applications, like smart urban areas and industrial automation projects.
Market Key Insights
- The 5G Chipsets market is projected to grow from $38.3 billion in 2023 to $264 billion in 2033. This represents a CAGR of 21.3%, reflecting rising demand across Smartphones, IoT Devices and Connected Vehicles.
- Qualcomm, MediaTek, Samsung are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the 5G Chipsets market and are expected to observe the growth CAGR of 20.4% to 29.8% between 2023 and 2030.
- Emerging markets including India, Brazil and UAE are expected to observe highest growth with CAGR ranging between 16.0% to 22.2%.
- Transition like Shift Towards Private 5G Networks is expected to add $9 billion to the 5g Chipsets market growth by 2030.
- The 5G Chipsets market is set to add $226 billion between 2023 and 2033, with manufacturer targeting RFIC & Baseband Processor Type projected to gain a larger market share.
- With Expansion of 5g networks globally, and Increased adoption in iot and smart cities, 5G Chipsets market to expand 590% between 2023 and 2033.
Opportunities in the 5G Chipsets
Countries such as India and Brazil offer prospects, for the expansion of 5th generation (5G) chipsets as they embark on the rollout of 5G networks.
Growth Opportunities in North America and Asia-Pacific
5th generation chipset market within telecommunications technology segment; North America takes the lead due to its network infrastructure and significant consumer electronics and automotive industry demands. Industry leaders such as Qualcomm and Intel are leading the way, in innovation. Contributing to a fiercely competitive market landscape.
The Asia Pacific region is observing a rise in the use of 5G technology chips with a particular focus in China and Japan along with South Korea leading the trend. Huawei and Samsung are both broadening their range of 5G services to keep up with the growing need in gadgets for consumers as well as, in smart city projects and industrial Internet of Things applications.
Market Dynamics and Supply Chain
01
Driver: Expansion of 5G Networks Globally, and Advancements in mmWave Technology
As countries around the globe deploy 5th generation (5G) networks infrastructure rapidly expands the demand for chipsets that're compatible with 5G technology to power devices in various industries. Advancements in ##https://datastringconsulting.com/industry-analysis/millimeter-wave-technology-market-research-report## enable data speeds and wider bandwidth capabilities. This improvement boosts the performance of 5G networks in city areas and fuels the need, for mmWave chipsets.
The increasing popularity of technology and the implementation of smart city initiatives are also fueling the demand for advanced 5G chipsets that can also facilitate fast and reliable connections, in high traffic areas.
02
Restraint: High Production Costs, and Compatibility Issues
Manufacturing advanced processes are needed for chipsets which can hike up costs and possibly make them less affordable.
Making sure that 5th generation chipset works well with network setups can be quite tricky and may hinder the pace of its adoption.
03
Opportunity: Integration with AI and Edge Computing and Development of Energy-Efficient Chipsets
By integrating 5th generation chipsets with AI functionalities and edge computing technologies in devices could enhance their performance significantly. This could lead to exploring new applications in industries such as healthcare and manufacturing.
Businesses are developing energy saving 5th generation chipsets to prolong the battery life of smartphones and Internet of Things gadgets while improving their user experience.
04
Challenge: Security Concerns
As the reach of 5th generation networks grows wider and broader in scope worries about safeguarding data privacy and addressing security vulnerabilities emerge as obstacles, to market growth.
Supply Chain Landscape
1
Semiconductor Manufacturer
Produces the core components like baseband processors and RFICs
2
Chip Assembly and Testing
3
Device Integrator
Chipset integration into consumer devices such as smartphones, tablets, and IoT devices
4
End-User
TelecommunicationsAutomotiveHealthcare
1
Semiconductor Manufacturer
Produces the core components like baseband processors and RFICs
2
Chip Assembly and Testing
3
Device Integrator
Chipset integration into consumer devices such as smartphones, tablets, and IoT devices
4
End-User
TelecommunicationsAutomotiveHealthcare
Use Cases of 5G Chipsets in Smartphones & IoT Devices
Smartphones : The new technology in smartphones that's responsible for fast downloads and live streaming, is the 5G chipsets powered connectivity system. Qualcomm and MediaTek are leading in the production of these chipsets.
Connected Vehicles : 5th generation chipsets in the industry are revolutionizing communication by significantly reducing delays for autonomous driving and interactions between vehicles and everything else (V2X). Companies, like Intel and Huawei are actively working together to create 5th generation chipsets tailored specifically for vehicles to enhance connectivity in the automotive sector.
IoT Devices : The chips for high density connections in Internet of Things (IoT) networks are very useful for cities and industrial IoT applications. The Exynos series from Samsung and the Snapdragon platforms by Qualcomm are choices, in the IoT chipset market.
Industrial Automation : In the realm of manufacturing and automation tasks benefit from 5th generation chipsets which facilitate control over machinery and robots, enhancing productivity & adaptability in processes. Ericsson and Nokia are at the forefront of advancements, in this field offering tailored robust 5th generation solutions specifically designed for industrial use cases.
Recent Developments
Advancements in the 5G chip market showcase notable progress in effectiveness and usage scenarios explored by various companies recently; Qualcomms latest modem focuses on enhancing power efficiency for smartphones; Intels partnership with the automotive sector showcases the promising capabilities of 5G technology in connected cars; and Huaweis chip designed for the Internet of Things (IoT) highlights the increasing importance of 5G in powering smart city solutions.
October 2023 : Qualcomm has unveiled its 5g modem designed for smartphones that promises improved power efficiency and faster download speeds.
July 2023 : Intel collaborated with a car company to incorporate 5th generation chipsets into self driving cars.
April 2023 : Huawei has introduced a 5th generation chipset designed specifically for use in Internet of Things (IoT) applications, within smart city setups.
Impact of Industry Transitions on the 5G Chipsets Market
As a core segment of the Semiconductor industry,
the 5G Chipsets market develops in line with broader industry shifts.
Over recent years, transitions such as Shift Towards Private 5G Networks and Advancement in Low-Latency Applications have redefined priorities
across the Semiconductor sector,
influencing how the 5G Chipsets market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift Towards Private 5G Networks
More and more businesses are turning to 5th generation networks to ensure safe and fast connectivity, for industrial Internet of Things (IoT) and smart manufacturing purposes.
02
Advancement in Low-Latency Applications
The use of 5th generation chips is making it possible, for processes that demand minimal delay to be done remotely like surgery and self driving cars.