5G Chipset Market Size, Share & Industry Analysis, By Type (Application Specific Integrated Circuit, Radio Frequency Integrated Circuit, Millimeter Wave Integrated Circuit, Cellular Integrated Circuit), By Frequency (Sub-6 GHZ, 26-39 GHZ, Above 39 GHZ), By Deployment Type (Smartphone/Tablets, Connected Vehicles, Connected Devices, Broadband Access Gateway Devices), By Industry Vertical (Energy & Utilities, Manufacturing, IT/Telecommunication, Media & Entertainment, Transportation & Logistics,), & Regional Forecast, 2024-2032

The global 5G chipset market size was valued at USD 21.89 billion in 2023. The market is projected to grow from USD 27.03 billion in 2024 to USD 223.48 billion by 2032, exhibiting a CAGR of 30.2% during the forecast period.

5G chipset is a next generation high-end dedicated connectivity chipset device. This chipset is manufactured to carry and transfer high-speed internet data with a low-latency network. The fifth generation network chipset has lower latency than existing 4th generation (4G/ 4.5G/ 4.9G) LTE chipsets. In addition, 5G chipsets are capable of offering 10 to 100 times more data transfer speed and higher efficiency than existing technology, driving the market growth. Also, this solution can easily extend the operational frequency of existing wireless broadband internet. Furthermore, it is developed to deliver high performance of connected devices, which enhances the user experience, connectivity, and overall operational effectiveness in all industry verticals. The increasing demand for high-speed and low-latency 5G infrastructure is responsible for market growth. Moreover, these chipsets are widely used in consumer electronics such as smartphones, tablets, laptops, and other connected devices, which is responsible for the market growth. 

The electronic and semiconductor industry vertical has been substantially affected due to the exponential growth of COVID-19 cases all over the globe. Various government authorities worldwide have imposed global lockdowns, which is majorly affecting the work from office culture of multiple sectors. However, post COVID most businesses started the implementation of emerging technologies such as artificial intelligence and the Internet of Things. Thus, conclusively, global lockdown forced people to stay home during COVID-19, which increased the work-from-home and bring-your-own-device concept. This factor is responsible for the surge in demand for 5G enabled chipsets in the global market.

• For instance, in May 2021, Qualcomm Inc., a telecommunication and network solutions provider, launched a new Qualcomm 315 5G IoT modem-RF system. This 5G chipset-enabled device is specially designed to optimize the performance of IoT devices in the end-user industry.

5G Chipset Market Trends

Increasing Use of Cutting-edge Devices in Various Industry Verticals Drives Market Proliferation

The digitization including high-end cutting-edge technologies such as industrial Internet of Things, industrial automation, and artificial intelligence has broaden the digital revolution impact globally. Furthermore, the government of developing nations such as India, Brazil, and Africa are focused on formulating favorable policies for consumers for the seamless adoption of new technologies. Such policies are also being launched to help manufacturers to set up production facilities in their countries to reduce manufacturing cost by providing subsidies and programs such as profit linked incentives (PLI) Schemes.  The seamless operation of advanced technology requires high speed and a low latency internet connection, which can further be achieved with the 5G enabled chipsets. Furthermore, these 5G chipsets are frequently used in hybrid electric and connected vehicles for real-time vehicle-to-vehicle and vehicle-to-pedestrian communication. Real-time communication in automobile vehicles reduces the chances of collision and accident. Further, the shift of manufacturing units to Industry 4.0 has surged the demand for connected machines through IoT and 5G chipsets that provide machine operation data to operators for effective machine handling and operation. This technological integration trend to sustain and grow the 5G chipset market revenue in long term.

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5G Chipset Market Growth Factors 

Growing Demand for High Speed and Low Latency 5G Network to Aid Market Escalation

Post COVID, internet penetration to small urban and rural areas grows exponentially owing to the change in operational model to work from home. Hence, the need for fast internet connectivity and growing consumer base of the broadband network companies has surged the demand for fifth generation internet or 5G technology. However, post pandemic, 5G has taken over the smartphone industry with low latency and stable network which kept the revenue growing exponentially for the 5G chipset industry.

• For instance, in October 2022, Telecom-Talk, a telecommunication discussion forum, published one survey report. According to that report, the smart device user spends 312 min/day on 5G smart devices in the U.S., which is 37 min/day more than 4G smart device users. It also states that in the U.S., the percentage of 5G smartphone users rose from 41% to 63% during2021 to 2022.

Furthermore, the increasing use of the Internet of Things and connected devices resulted in a growing demand for 5G network technology, which is responsible for the rising penetration of 5G enabled processors and chipsets in the global market. Thus, 5G chipsets are significant components of various 5G enabled devices such as MODEM, routers, smartphones, laptops, and internet base stations. 5G chipsets are increasingly used in different consumer electronic devices. Thus, the growing use of 5G processors and chipsets in consumer electronics devices is driving the market globally.

RESTRAINING FACTORS

High Cost of Chipsets to Hinder Market Growth

5G processor and chipset in consumer electronic goods is nearly 50% higher than that of existing 4G technology-based chipsets. This high price of 5G chipsets reduces the margin of various consumer goods manufacturing companies such as Xiaomi, Samsung, Apple and others. For instance, in January 2020, a survey done by the leading news agency Mint showed that the price of a 5G processor and chipset manufactured by two major manufacturers, Qualcomm and Mediatek, is USD 60 to USD 80 higher than existing 4G chipsets. In this survey, it was also seen that if the technical specification of the chipset is increased, then the price also increases in proportion to that specification. Thus, the increase in the price of chipsets resulted in the higher cost of the final product, such as smartphones and laptops, so most of the time, smartphone manufacturers prefer 4G chipsets for budget devices. The higher cost of chipsets is responsible for hindering the global market expansion.  

5G Chipset Market Segmentation Analysis

By Type Analysis

ASIC Segment Dominated the Market in 2023 Due to its Compact Size and Shape

Based on type, the market is classified into Application Specific Integrated Circuits (ASIC), Radio Frequency Integrated Circuit (RFIC), Millimeter Wave Integrated Circuit (mm Wave IC), Cellular Integrated Circuit (Cellular IC), and others.

The Application Specific Integrated Circuit (ASIC) segment held the largest market share in 2023. It is owing to its unique benefits, such as being very small and light in weight, which ultimately makes the system compact. Also, the cost of Application Specific Integrated Circuit (ASIC) is comparatively less than other alternatives.

Furthermore, Radio Frequency Integrated Circuit (RFIC) and Millimeter Wave Integrated Circuit (mm Wave IC) continue to follow the same trends in the forecast period.

However, the Cellular Integrated Circuit (cellular IC) segment shows the highest CAGR in the forecast timeline. The increasing demand for Cellular Integrated circuits (cellular IC) in smartphones and tablets for obtaining low latency and high-speed connectivity is a key factor contributing to the growth of this segment.   

By Frequency Analysis

26-39 GHZ Segment to Lead Owing to Higher Use in IT and Telecom Sector

Based on frequency, the market is classified into Sub-6 GHZ, 26-39 GHZ, and above 39 GHz.

The 26-39 GHZ segment generated prominent revenue in 2023. The increasing use of 26-39 GHZ chipsets in automotive and IT & telecom industries to transfer a high volume of data is a key factor attributed to the market expansion.

However, the 26-39 GHZ segment is estimated to generate the highest CAGR during the forecast period. Furthermore, Sub-6GHz follows the same trends in the forecast year. It can carry more data than the 2.4 GHZ range as the sub-6 spectrums has more space to travel data.

Furthermore, the above 39 GHZ segment is following the same trend in the market due to its increasing use in the energy & utility sector.

By Deployment Type Analysis

Smartphone/Tablets Segment to Hold Dominant Share Owing to Heavy Use of Next Gen Processors

Based on deployment type, the market is classified into smartphones/tablets, connected vehicles, connected devices, broadband access gateway devices, and others.

The smartphone/tablet segment gained significant revenue in 2023 and is expected to follow this trend in the forecast period, owing to the frequent use of next-generation networking chipsets in smartphones and tablets.

Furthermore, the connected vehicle segment generated the second-highest revenue in the market due to the heavy penetration of high-end hybrid technology in the automotive industry.

However, the corresponding device segment gained the highest CAGR in the market during the forecast period. It is owing to the growing penetration of emerging technology, such as the Internet of Things and industrial automation, in various industries, which is driving market growth.

By Industry Vertical Analysis

Due to Heavy Penetration of 5G Technology, IT & Telecom Sector Holds Prominent Position

Based on industry vertical, the market is classified into energy and utilities, manufacturing, IT and Telecommunication, media and entertainment, transportation and logistics, consumer electronics, healthcare, and others. 

The IT and telecommunication segment generated the highest revenue in 2023, owing to the heavy penetration of 5G network technology in the IT & telecommunication industrial vertical. Furthermore, the consumer electronics and media & entertainment segments followed the same market trend and generated the second and third highest revenue, respectively. It is owing to the increasing use of 5G infrastructure in smartphones for high-end gaming units for live streaming.

In the manufacturing industry, 5G network is widely used to increase Machine-to-Machine (M2M) contact for better communication, which is responsible for the growth of 5G chipsets. However, the consumer electronic sector is estimated to generate the highest CAGR in the forecast period. Moreover, owing to the gradual adoption of technology, the healthcare, manufacturing, transportation and logistics, and others segments are showing moderate growth in the market.

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REGIONAL INSIGHTS

Asia Pacific held a significant share and will dominate the global 5G chipset market share in the coming years. The adequate availability of advanced processors and chipsets manufacturing units and modern research & development facilities in developing countries, such as China, Japan, South Korea, Taiwan, and Singapore, is a key factor contributing to this growth. Also, emerging countries, such as India, Australia, and Southeast Asian countries, play a vital role in the growth of the regional market. India and Singapore are focusing on increasing manufacturing units of 5G-enabled devices. They are also expanding the manufacturing facility of chipsets and processors in the country. For instance, in October 2022, as per the “Economic Times” publication, 5G smartphone factories in India increased their manufacturing capacity from 2 to 200 units after launching 5G service in India. These above factors attract global investors in India to start their manufacturing units, propelling the market growth.

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China Holds Major Share in the Market Owing to the Availability of Prominent Key Players

China is dominating the chipset market, owing to the availability of modern and advanced processor and chipset product manufacturing facilities in the country. Also, China is continuously focusing on researching and developing high-end 5G technology. Moreover, China has many prominent critical players in the market, which is expected to drive the market growth.

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Asia Pacific is dominating the global market. It is due to the availability of advanced manufacturing units of microprocessors, wafers, and chipsets. Taiwan, China, South Korea, Singapore, and Japan are the primary suppliers of semiconductors and chipsets to the small and medium industries in the global market. Furthermore, Oceania and South East Asian countries, such as Indonesia, Malaysia, the Philippines, and Vietnam, are focusing on increasing the implementation of 5G technology in their respective countries, which is also responsible for market growth.

In North America, the U.S. generated the most significant revenue in 2023 due to the presence of major key players in the country. Moreover, the Federal Government of the U.S. is continuously promoting the penetration and implementation of the 5G network in the country. However, Canada is showing the highest CAGR in the forecast period, owing to the increasing investment of foreign players in 5G technology and manufacturing of 5G-enabled devices in the country. Furthermore, Mexico is also strengthening its position and creating lucrative opportunities for the 5G chipset market growth by adopting various business strategies.  

In Europe, Germany has the most advanced and modern manufacturing facility in the region. Therefore, it dominates the market by generating the highest revenue. However, Germany is displaying the highest CAGR in the forecast period. The rest of Europe, the U.K., and Italy follow the same trend and generate the second and third largest revenues in the market, respectively. However, Spain and France show gradual and moderate market growth. Moreover, Europe includes most developed countries, and 5G networks penetration in these countries, such as Sweden, Hungary, Italy, and Moldova, is very high, which creates the need for high-end 5G-enabled devices.    

In the Middle East & Africa, due to government authorities' less focus on implementing 5G technology and manufacturing the wafers, processors, and chipsets in the Middle East, Africa, and South America, the growth in this region is moderate. However, Saudi Arabia, the UAE, and Brazil are focusing on developing the semiconductor manufacturing industry, which is showing significant growth in the market.

KEY INDUSTRY PLAYERS 

Qualcomm Technology Holds Prominent Market Share Owing to Advanced Research & Development Facility

Qualcomm Technology held a prominent market share in 2023. This is due to the company's focus on researching and developing 5G solutions. It is also the major supplier of chipsets and 5G solutions to other consumer electronics product manufacturers. Furthermore, Broadcom, Qualcomm Technologies, Inc., Unisoc Communications, Inc., Intel Corporation, Samsung Electronics Co., Ltd., Xilinx Inc., Mediatek Inc., Qorvo Infineon Technologies AG, Huawei Technologies Co., Ltd. and others have adopted various market and business growth strategies such as partnerships, collaborations, acquisitions, and product launches to tackle massive competition in the market. Also, this organization focused on expanding its business units in various countries, which is helpful for diversified product development as per customer requirements. Moreover, the continuous growth in 5G technology is responsible for the development of the market.

List of Top 5G Chipset Companies:

• Qualcomm Technologies, Inc. (U.S.)


• Broadcom (U.S.)


• Unisoc Communications, Inc. (China)


• Mediatek Inc. (Taiwan)


• Intel Corporation (U.S.)


• Samsung Electronics Co., Ltd. (South Korea)


• Huawei Technologies Co., Ltd. (China)


• Qorvo (U.S.)


• Xilinx Inc. (U.S.)


• Infineon Technologies AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• November 2023 – Mediatek launched its 5G ready chipset Dimensity 8300 based on TSMC’s second generation 4nm process technology. It has an octa-core processor comprising four Arm cortex A715 and A510.


• November 2023 – Qualcomm announced its global expansion with its latest 5G redcap chipset snapdragon X35 5G modem RF system that will enable the smaller and most cost efficient 5G devices to connect and explore the capabilities of 5G.


• September 2023 – Qualcomm, a leading mobile processor manufacturer, announced an agreement with tech giant Apple. The agreement focused on the supply of Snapdragon 5G modem RF systems for smartphone launch in 2024.


• September 2023– Qualcomm Snapdragon X75 5G RF modem system accomplished the 200mbps uplink speed with just 35 MHz 5G Spectrum. Qualcomm in collaboration with Samsung  announced that companies have achieved the world’s first simultaneous 5G uplink.


• September 2023– Mediatek, a leading chipset manufacturer, manufactured its first chipset from the TSMC 3nm processor technology with taping out the mass production of flagship Dimensity System on Chip (SoC).

REPORT COVERAGE

The report provides a detailed analysis of the global market and focuses on crucial aspects such as leading companies, product/service types, and leading end-use industries of printed and flexible electronics. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors contributing to the market growth in recent years.

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Report Scope and Segmentation