5G Chipset Market Report (2021-2031) | The Insight Partners
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
Market Size Value in US$ 1.03 Billion in 2019 Market Size Value by US$ 22.86 Billion by 2027 Growth rate CAGR of 41.0% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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5G Chipset Market: Strategic Insights
| Market Size Value in | US$ 1.03 Billion in 2019 |
| Market Size Value by | US$ 22.86 Billion by 2027 |
| Growth rate | CAGR of 41.0% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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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
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type ); Product ; End-User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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