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.
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 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.
You will get customization on any report - free of charge - including parts of this report, or country-level analysis, Excel Data pack, as well as avail great offers and discounts for start-ups & universities
5G Chipset Market: Strategic Insights
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.
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.
Key segments that contributed to the derivation of the 5G chipset market analysis are the.
The regional trends and factors influencing the 5G Chipset Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses 5G Chipset Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 38.56 Billion |
| Market Size by 2031 | US$ 166.38 Billion |
| Global CAGR (2023 - 2031) | 20.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The 5G Chipset Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the 5G Chipset Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
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:
(Source: Viettel Group, Press Release)
(Source: Qualcomm, Press Release)
The "5G Chipset Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
North America is expected to hold the highest market share in the 5G chipset market.
The key players holding majority shares in the global 5G chipset market areBroadcom Inc., Huawei Device Co., Ltd., Infineon Technologies AG, Qualcomm Technologies, Inc., and Intel Corporation.
Increased integration of functionalities to reduce power consumption and size advancement in mmWave technology for faster data rates is anticipated to play a significant role in the global 5G chipset market in the coming years.
Rise in government initiatives to develop 5G networks and growing demand for high-speed mobile internet services are the major factors driving the 5G chipset market.
The global 5G chipset market was estimated to be US$ 38.56 billion in 2023 and is expected to grow at a CAGR of 20.1% during the forecast period 2024 - 2031.