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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 ID:DS1201003
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Semiconductors & Electronics
Semiconductor
5G Chipsets
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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. This trajectory underscores the sector’s strategic importance within the broader semiconductor and telecommunications ecosystem. Demand is being propelled by rapid 5G network expansion, accelerating smartphone replacement cycles, and increasing enterprise adoption of private wireless infrastructure. Governments and telecom operators continue investing heavily in next-generation connectivity, strengthening the commercial foundation for chipset suppliers. Additionally, rising data consumption, cloud based services, and edge computing integration are reinforcing the need for high-performance 5G modem and RF solutions. Competitive innovation among leading semiconductor companies, combined with supply chain localization initiatives, is further shaping the market’s direction. As industries digitize operations and connectivity becomes mission-critical, 5G chipsets remain central to enabling scalable, low-latency communication across consumer and enterprise segments.

5G chipsets are integrated semiconductor solutions that power devices and infrastructure to operate on fifth-generation wireless networks. They typically combine baseband processors, modem-RF systems, and advanced system-on-chip architectures to deliver high-speed data transmission, low latency, and improved spectral efficiency. These chipsets are widely used in smartphones, fixed wireless access equipment, industrial IoT modules, automotive telematics systems, and 5G network infrastructure. Recent trends include the shift toward integrated 5G SoCs for improved power efficiency, growing adoption in private enterprise networks, and expansion into connected vehicle ecosystems. Increasing focus on AI-enhanced connectivity and energy-efficient designs is also influencing product development. As digital transformation accelerates globally, 5G chipsets serve as the foundational hardware enabling seamless connectivity across consumer electronics, smart cities, healthcare systems, and advanced manufacturing environments.

5G Chipsets market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2023-2033
5G Chipsets Market Outlook

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, Connected Vehicles, and IoT Devices.

  • Qualcomm Technologies Inc, MediaTek Inc, and Samsung Electronics Co 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 Transition Toward Integrated 5G SoCs Across Consumer and Industrial Devices is expected to add $30 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 Connected Vehicles & IoT Devices Application 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.

5g chipsets market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
5G Chipsets - Country Share Analysis

Opportunities in the 5G Chipsets

Automotive manufacturers are embedding 5G chipsets into next-generation connected vehicles to enable vehicle-to-everything (V2X) communication, real-time navigation, and advanced driver assistance systems. As autonomous and semi-autonomous vehicle trials expand, demand for low-latency, high-reliability 5G modems is also expected to grow significantly. Premium automotive 5G chipsets with enhanced security and edge-processing capabilities will see the strongest uptake. Strategic collaborations between semiconductor firms and automakers are accelerating commercialization, particularly in technologically advanced automotive markets across North America, Europe, and East Asia.

Growth Opportunities in Asia-Pacific and North America

Asia-Pacific remains the most dynamic region in the 5G chipsets market, driven by strong smartphone manufacturing ecosystems, aggressive 5G infrastructure rollouts, and government-backed semiconductor initiatives. Countries across East Asia and South Asia continue expanding 5G coverage, accelerating demand for 5G SoCs, baseband processors, and RF front-end solutions. The region benefits from the presence of major chipset designers and large-scale device OEMs, creating a tightly integrated value chain. Key opportunities lie in mid-range 5G smartphones, industrial IoT modules, and private 5G deployments in smart manufacturing hubs. Competitive intensity is high, with regional and global semiconductor companies vying for supply agreements with handset brands and telecom operators. Policy support for domestic chip production further shapes market momentum, encouraging vertical integration and localized innovation. Overall, Asia-Pacific’s scale, cost-sensitive consumer base, and export-oriented electronics sector position it as both a volume leader and innovation driver in 5G chipset commercialization.
North America represents a high-value, innovation-driven market for 5G chipsets, supported by early 5G infrastructure deployment and strong enterprise adoption. Demand is fueled by premium smartphone penetration, expanding fixed wireless access services, and rapid growth in private 5G networks across manufacturing, logistics, and energy sectors. The region’s advanced automotive ecosystem also creates opportunities for 5G-enabled telematics and vehicle-to-everything connectivity solutions. Competitive dynamics are shaped by leading fabless semiconductor firms, strategic partnerships with foundries, and close collaboration with telecom carriers. Opportunities are strongest in mmWave-capable chipsets and enterprise-grade 5G modems optimized for ultra-low latency applications. Additionally, government-backed semiconductor incentives and supply chain resilience initiatives support domestic innovation and long-term investment. While device volumes may be lower than in Asia-Pacific, higher average selling prices and enterprise contracts enhance profitability and sustain regional market influence.

Market Dynamics and Supply Chain

01

Driver: Smartphone 5G Adoption and Expansion of IoT Connectivity Demands

Rapid global adoption of 5G-enabled smartphones and the expanding use of Internet of Things devices are also two intertwined growth factors driving the 5G chipset market. First, smartphone adoption continues to surge as consumers demand faster, more reliable connectivity, immersive media, and cloud gaming support. OEMs are also increasingly integrating advanced 5G chipsets into mid-range and flagship devices to differentiate performance, battery efficiency, and AI capabilities, pushing chipset suppliers to innovate and scale production. Second, IoT connectivity spanning smart cities, industrial sensors, telehealth devices, and connected wearables is also driving demand for low-power, highly scalable 5G modules. These devices require specialized 5G chipsets designed for massive machine-type communications (mMTC) and low latency, expanding addressable markets beyond traditional mobile. Together, these trends reinforce ecosystem investments, with telecom operators upgrading infrastructure and device manufacturers prioritizing 5G-capable silicon. This dual growth accelerates R&D, fuels competition among chipset producers, and broadens 5G chipset adoption across consumer and industrial segments.
Private 5G networks in industrial and enterprise sectors are also becoming a critical driver for 5G chipset demand, especially in manufacturing, logistics, and energy. These dedicated networks offer enhanced security, ultra-low latency, and high reliability, enabling automation, robotics, and real-time analytics within factory floors and campus environments. Sectors such as automotive manufacturing deploy private 5G to connect autonomous guided vehicles, inspection drones, and smart machinery, all requiring robust 5G modems and specialized chipsets. Similarly, logistics hubs leverage private 5G to optimize asset tracking, predictive maintenance, and AR/VR-assisted workflows. Enterprises increasingly prefer customized 5G solutions that offer greater control over spectrum and performance compared to public networks. As private 5G deployments grow, chipset manufacturers benefit from higher orders for specialized hardware, fueling innovation in industrial 5G silicon tailored for rugged environments and long-term support, further expanding market reach.
02

Restraint: High Development Costs and Complex Certification Processes Limit 5G Chipset Adoption

The extensive R&D investment required to design, optimize, and certify 5G chipsets especially mmWave and advanced sub-6 GHz variants remains a significant market restraint. Development of multi-band RF integration, power-efficient 5G modems, and compliance with evolving global standards increases time-to-market and production costs. Smaller OEMs or fabless designers struggle to compete with incumbents, slowing broader ecosystem participation. For example, certification delays in new regions can postpone device launches, directly impacting revenue and reducing demand elasticity. High costs also tighten profit margins for producers, restraining pricing flexibility and delaying rollout in cost-sensitive emerging markets.
03

Opportunity: Enterprise Private 5G Networks Transforming Smart Manufacturing and Logistics Operations and Rapid Expansion of 5G-Enabled Fixed Wireless Access in Rural Broadband Markets

Industrial enterprises adopting private 5G networks for smart factories and automated logistics hubs represent a high-value niche opportunity. Manufacturing plants require ultra-reliable low-latency communication to support robotics, AI-driven inspection systems, and real-time asset tracking. This shift fuels demand for industrial-grade 5G chipsets designed for rugged environments and extended lifecycle support. Mid-band and standalone 5G chipset variants tailored for industrial IoT gateways and edge computing nodes are expected to grow fastest. Partnerships between chipset vendors and system integrators are further unlocking adoption in advanced manufacturing economies.
Fixed Wireless Access (FWA) deployments in underserved rural and semi-urban regions present a strong growth avenue for 5G chipsets. Governments and telecom operators are increasingly using 5G FWA to deliver high-speed broadband where fiber rollout remains economically unviable. This trend drives demand for sub-6 GHz and mmWave 5G modem chipsets optimized for customer premises equipment and outdoor receivers. Emerging markets in Asia-Pacific, North America, and parts of Europe are accelerating spectrum allocation for FWA, boosting volumes for mid-range and high-performance 5G chipsets tailored to broadband gateways and routers.
04

Challenge: Global Supply Chain Volatility and Geopolitical Trade Tensions Disrupt 5G Chipset Scaling

Ongoing supply chain disruptions and geopolitical tensions including export controls and silicon export restrictions continue to hinder 5G chipset market expansion. Restrictions on semiconductor trade between major tech hubs have delayed chip deliveries and forced design pivots, raising costs and causing inventory unpredictability. For instance, export controls on certain advanced fabrication technologies have limited access for some OEMs, reducing production volumes and delaying network upgrades. These disruptions erode investor confidence, shift demand toward alternative suppliers, and increase lead times, collectively dampening revenue growth and slowing overall 5G chipset adoption in key markets.

Supply Chain Landscape

1

Design & IP

Qualcomm Technologies IncMediaTek IncHuawei Technologies Co Ltd
2

Wafer Fabrication

Samsung Electronics Co LtdIntel CorporationTSMC
3

Packaging & Test

Broadcom IncInfineon Technologies AGASE Group
4

Applications / End Users

SmartphonesWireless InfrastructureAutomotive Telematics
5G Chipsets - Supply Chain

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

Recent developments in the 5G chipsets market reflect intensified competition around advanced 5G SoC platforms, AI-enabled modems, and power-efficient baseband processors. Leading semiconductor companies are accelerating product launches built on advanced fabrication nodes to strengthen performance in smartphones, fixed wireless access, and private network deployments. Strategic acquisitions and supply agreements are also reshaping the ecosystem, securing long-term wafer capacity and RF component integration. A key market trend is the shift toward integrated 5G modem-RF systems, improving device efficiency while increasing competitive intensity among chipset vendors globally.

March 2025 : Qualcomm Technologies Inc unveiled the Qualcomm X85 5G Modem-RF, its newest 5G modem with AI-powered connectivity and industry-leading speeds.
August 2024 : Samsung Electronics Co Ltd and GCT Semiconductor Holding Inc signed an MOU to accelerate 4G/5G chipset and module development, aiming to expand ecosystem adoption.

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 Transition Toward Integrated 5G SoCs Across Consumer and Industrial Devices and Transition From Consumer-Centric Demand to Enterprise and Infrastructure-Led Growth 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

Transition Toward Integrated 5G SoCs Across Consumer and Industrial Devices

The 5G chipsets industry is transitioning from discrete modem architectures to highly integrated 5G system-on-chip (SoC) platforms that combine baseband processors, AI engines, and RF components into unified solutions. This shift reduces power consumption, optimizes device design, and lowers total bill-of-materials costs for OEMs. In smartphones, integrated 5G SoCs enable slimmer designs and longer battery life, accelerating replacement cycles and premium device upgrades. In industrial IoT, compact integrated chipsets simplify deployment of smart sensors and connected machinery. The transition is reshaping supplier relationships, as OEMs increasingly favor vendors offering end-to-end 5G silicon platforms, intensifying competition while streamlining procurement and enhancing scalability across multiple application segments.
02

Transition From Consumer-Centric Demand to Enterprise and Infrastructure-Led Growth

The market is moving beyond smartphone-driven demand toward enterprise, automotive, and infrastructure applications as primary growth engines. Private 5G networks in manufacturing, logistics hubs, and energy facilities are expanding demand for specialized 5G chipsets optimized for reliability and long lifecycle support. Similarly, connected vehicle platforms require advanced 5G modem solutions for telematics and V2X communication. This transition diversifies revenue streams for chipset manufacturers and reduces dependence on cyclical handset sales. It also alters competitive dynamics, as vendors compete not only on price but on ecosystem partnerships and vertical integration, strengthening long-term contracts and stabilizing revenue pipelines across industrial and infrastructure markets.