The 5G chipset market is expected to grow from USD 12.8 billion in 2020 to USD 67.2 billion by 2027, at a CAGR of 26.7%. The major factors driving the growth of the 5G chipset market are the growing demand for high-speed internet and broad network coverage, increasing cellular IoT connections, and an increase in mobile data traffic. However, the high cost of the 5G chipset is expected to restrain the growth of the market.
RFIC segment to witness highest growth in 5G chipset market in coming years
RFIC which includes RF transceiver and RF FE segment is expected to witness highest CAGR in coming years. The mobiles devices and telecommunication infrastructure segments are expected to be the major contributors to the growth of the RFIC market. The increasing number of RF transceiver ICs in smartphones is the key factor expected to drive the growth of the 5G chipset market for RFIC. The deployment of mmWave ICs in 5G infrastructure equipment and the high bandwidth offered by mmWave technology are expected to support the market growth.
10 to 28 nm to account for largest share of 5G chipset market during forecast period
Advancements in the fabrication process are supporting the improvements in ICs, which has made electronic devices smaller and more power optimized. The 5G chipset market by process node has been segmented into less than 10 nm, 10–28 nm, and above 28 nm. Some of the major process nodes on which 5G chipset components such as modems and RFICs are manufactured include 5 nm, 7 nm, 10 nm, 14 nm, 28 nm, 45 nm, 60 nm, and so on. 5G chipsets with process node between 10 and 28 nm mostly include baseband processors for 5G infrastructure and RFIC components.
24–39 GHz to grow at highest CAGR in 5G chipset market from 2020 to 2027
This frequency band is also called the mmWave frequency band and is capable of offering ultra-high-speed mobile broadband 5G service. This spectrum is likely to play a key role in supporting the burgeoning mobile data traffic growth. High bandwidth offered by this spectrum and the improving participation of telecom service providers in this spectrum are fueling the growth of the 24–39 GHz frequency band.
Mobile devices to hold largest share of 5G chipset market during the forecast period
Smartphones and tablets will be the key attraction in the consumer electronics market for 5G network. With the implementation of 5G network, customers can access and download data at high speed. In 5G smartphones, 5G-enabled ASICs are implemented. Increasing use of smartphones to drive the demand for 5G chipsets, however, chipset manufacturers are working on developing 5G chipsets for other mobile devices too.
“APAC to witness highest CAGR in the 5G chipset market during the forecast period”
APAC is witnessing dynamic changes in the adoption of new technologies and advancements in organizations across industries. 5G network would play an integral role in advanced technologies such as IoT and M2M communication and applications such as smart cities and industrial automation. 5G connectivity is suited to these areas, as it provides simultaneous connectivity for multiple devices and has low latency, which, in turn, improves the overall performance of the system. According to GSMA, 23% of the total mobile connections in Asia Pacific will be running on 5G networks by 2025. With 5G already launched in 9 countries, with 12 others having plans to roll out in the near future, Asia Pacific is anticipated to be the largest market for 5G chipsets.
In APAC, the investments look promising, as most countries such as China, Japan, and South Korea have successfully contained the virus compared with the US and European countries. China is easing the restrictions placed on factory lockdowns and worker movement. The major telecommunication equipment providers in the region, including ZTE and Huawei Technologies, have signed more than 95 5G commercial deals with global leading operators. Huawei has been providing support to launch 35 5G commercial networks by December 2020.
The break-up of primary participants for the report has been shown below:
- By Company Type: Tier 1 - 25%, Tier 2 - 30%, and Tier 3 - 45%
- By Designation: C-level Executives - 30%, Manager Level - 40%, and Others - 30%
- By Region: North America - 30%, Europe - 20%, APAC - 40%, and RoW - 10%
Major players in the 5G chipset market are Qualcomm, Inc. (US), Intel Corporation (US), Samsung Electronics Co., Ltd. (South Korea), Qorvo, Inc. (US), Huawei Investment & Holding Co., Ltd. (China), Xilinx, Inc. (US), Analog Devices, Inc. (US), NXP Semiconductors N.V. (Netherlands), Marvell Technology Group (Bermuda), Broadcom Inc. (US), Murata Manufacturing Co., Ltd. (Japan), Renesas Electronics Corporation (US), Infineon Technologies AG (Germany), Anokiwave (US), MACOM Technology Solutions Holdings Inc. (US), and Unisoc (Shanghai) Technologies Co., Ltd. (China).
This research report categorizes the 5G chipset based on type, frequency, process node, end-use, and region. The report describes the major drivers, restraints, challenges, and opportunities pertaining to the 5G chipset market and forecasts the same till 2027.
Key Benefits of Buying the Report
The report would help leaders/new entrants in this market in the following ways:
- This report segments the 5G chipset market comprehensively and provides the closest market size projection for all subsegments across different regions.
- The report helps stakeholders understand the pulse of the market and provides them with information on key drivers, restraints, challenges, and opportunities for market growth.
- This report would help stakeholders understand their competitors better and gain more insights to improve their position in the business. The competitive landscape section includes product launches and developments, partnerships, and collaborations.
- This report would help understand the pre and post-COVID-19 scenarios as to how would the penetration of 5G chipset will look like for the forecast period.
- The region segment includes the country wise impact analysis of COVID-19 and initiatives taken to overcome these impacts.