5G Chipset Market Size By Product (Network Infrastructure Equipment, Customer Premises Equipment (CPE), Devices), By Integrated Circuit (Radio Frequency Integrated Circuit (RFIC), Application-Specific Integrated Circuit (ASIC)), By Industry (Building Automation, Industrial Automation), & Region For

5G Chipset Market Valuation – 2024-2031

The 5G chipset market is witnessing remarkable expansion fueled by the integration of cutting-edge technologies to meet evolving standards in connectivity, speed, and reliability across diverse industries. With applications spanning residential, commercial, and industrial sectors, 5G chipsets play a pivotal role in delivering innovative solutions to a wide range of users. Estimated at USD 31.22 Billion in 2023, the market is forecasted to surge to approximately USD 177.87 Billion by 2031 underscoring its continued growth trajectory.

Advancements in smart technology and the Internet of Things (IoT) are driving demand for efficient 5G-enabled systems. These technological innovations enable seamless integration with AI-driven solutions such as automated monitoring systems and predictive analytics, thereby enhancing network performance and user satisfaction. This integration is poised to bolster connectivity and user experience by enabling the 5G chipset market expected to achieve a compound annual growth rate (CAGR) of 26.80% between 2024 and 2031.

5G Chipset – Definition/ Overview

A 5G chipset is a specialized semiconductor component designed to enable devices to connect to and communicate over 5G cellular networks providing high-speed, low-latency wireless connectivity for a wide range of applications from smartphones and tablets to Internet of Things (IoT) devices and industrial machinery. These chipsets integrate advanced technologies and signal processing capabilities to support the requirements of 5G networks including faster data transfer rates, increased network capacity, and enhanced reliability driving the next generation of wireless communication.

5G chipsets are used in a variety of industries to provide high-speed, low-latency wireless connectivity to a wide range of devices and services. In the consumer market, 5G chipsets provide ultra-fast internet browsing, high-definition video streaming, and immersive gaming experiences on smartphones, tablets, and laptops. Furthermore, in the industrial sector, 5G chipsets make it easier to deploy smart factories, self-driving trucks, and remote-controlled machinery, revolutionising production and logistical operations. Furthermore, in the healthcare and transportation industries, 5G chipsets enable telemedicine services, real-time patient monitoring, and enhanced vehicle-to-vehicle communication systems ushering in a new era of connected and intelligent technology.

In the future, 5G chipsets are expected to deliver dramatic changes across industries with improvements in connectivity, speed, and reliability opening up new avenues for innovation and expansion. As 5G networks expand and mature, the integration of 5G chipsets into a variety of devices and applications is projected to accelerate resulting in seamless connectivity and improved user experiences. Furthermore, developing technologies such as the Internet of Things (IoT), artificial intelligence (AI), and edge computing are expected to merge with 5G resulting in synergies that will further transform industries such as healthcare, transportation, manufacturing, and entertainment. Furthermore, the widespread availability of 5G-enabled devices and services is expected to boost economic growth, promote digital inclusiveness, and enable individuals and organisations to prosper in an increasingly linked world.

How Increasing Demand for Mobile Data Services Drive the 5G Chipset Market?

The growing need for mobile data services is driving the 5G chipset market owing to exponential development in data consumption and the requirement for faster and more reliable connectivity. With the rise of bandwidth-intensive applications like video streaming, online gaming, and cloud computing, both consumers and companies want faster data rates and lower latency to support their digital activities. 5G chipsets enable mobile devices to fully utilise the capabilities of 5G networks providing much higher download and upload rates than prior generations. This improved connectivity experience encourages the use of 5G-enabled smartphones, tablets, and other devices increasing demand for 5G chipsets from device manufacturers and network operators.

The expansion of Internet of Things (IoT) devices and applications drives up the demand for 5G chipsets. As more IoT devices become available from smart household appliances and wearable gadgets to industrial sensors and self-driving cars, there is a growing demand for dependable and low-latency connectivity to enable real-time data transmission and processing. 5G chipsets serve as the critical connection backbone for these IoT ecosystems allowing devices to communicate seamlessly and supporting creative IoT solutions across a wide range of industries.

The deployment of 5G networks provides potential for network operators to monetise new services and expand into emerging market segments. Operators may attract consumers looking for better connectivity experiences by offering premium 5G data plans as well as value-added services like augmented reality, virtual reality, and immersive entertainment. This sets off a virtuous cycle in which rising demand for high-speed mobile data services drives investments in 5G infrastructure and stimulates more innovation in the 5G chipset industry, ultimately fueling the expansion of the entire ecosystem.

Will High Cost of 5G Chipset for Mobile Devices Hamper the 5G Chipset Market?

The high cost of 5G chipsets for mobile devices offers a potential barrier to the broad adoption of 5G technology. Because 5G chipsets integrate modern technology and need complicated manufacturing methods, they often have higher production costs than earlier generations of chipsets. This financial burden is often passed on to customers in the form of higher device pricing making 5G-enabled smartphones and tablets less affordable for budget-conscious consumers particularly in emerging nations with lesser purchasing power.

The high cost of 5G chipsets may discourage device manufacturers from incorporating 5G technology into their product lines, limiting their ability to offer competitively priced gadgets. This might limit the speed of 5G rollout and delay the transition to 5G networks especially in areas where pricing is a major concern for consumers. Furthermore, for network operators planning to upgrade their infrastructure to enable 5G, the high cost of 5G chipsets may provide financial hurdles and influence investment decisions thereby delaying the deployment of 5G networks and services.

Despite these obstacles, there are some mitigating variables that could help to mitigate the impact of high chip costs on the 5G industry. Technological developments and economies of scale are expected to reduce the cost of 5G chipsets over time making them more accessible for both device manufacturers and customers. Furthermore, government incentives, subsidies, and measures to encourage 5G adoption may help to mitigate initial pricing obstacles and increase demand for 5G-enabled products and services. Furthermore, competition between chipset producers and device manufacturers may result in pricing competitiveness and innovation bringing down costs and widening market access for 5G technology.

Category-Wise Acumens

Will the Increasing Adoption of 5G Chipsets Drive the Product Segment?

The network infrastructure equipment is dominating the market. The growing acceptance of 5G chipsets is expected to drive growth in the product segment aided by the expansion of 5G-enabled devices across industries and applications. As the demand for faster, more reliable connectivity grows, 5G chipsets play an important role in enabling the next generation of mobile devices, IoT applications, and connected technologies. The growing ecosystem of 5G-enabled devices which includes smartphones, tablets, wearables, industrial sensors, and automotive systems is driving up demand for 5G chipsets.

The widespread deployment of 5G networks by telecom operators around the world accelerates the adoption of 5G chipsets as network infrastructure upgrades allow device manufacturers to introduce new 5G-compatible products and capitalise on the growing demand for high-speed connectivity. Furthermore, advances in semiconductor manufacturing technology and economies of scale are lowering the cost of 5G chipsets making them more affordable and available to device manufacturers around the world. This decrease in chipset costs combined with the increased availability of 5G networks and services is likely to drive broader use of 5G chipsets and fuel growth in the product category.

The integration of 5G chipsets into a wide range of consumer and industrial devices creates new opportunities for creativity and differentiation as manufacturers harness 5G technology’s potential to create creative products with improved connectivity, performance, and functionality. From smartphones with lightning-fast download speeds and low-latency gaming experiences to smart factories with ultra-responsive IoT sensors and self-driving machinery, the adoption of 5G chipsets is fueling a wave of innovation across industries driving product growth and shaping the future of connectivity.

Will Demand for 5G-Enabled Smartphones and High Chipset Costs Drive the Integrated Circuit Segment?

The application-specific integrated circuit (ASIC) segment is dominating the market. The need for 5G-enabled smartphones is a crucial driver of growth in the integrated circuit (IC) industry, particularly for companies that research and manufacture 5G chipsets. As consumers demand faster connectivity and more complex features from their smartphones, smartphone makers must incorporate 5G technology to remain competitive in the market. This creates a surge in demand for 5G chipsets which are critical components for enabling 5G connectivity and improving smartphone performance.

The high cost of 5G chipsets has the potential to have a significant influence on the integrated circuit industry. While the demand for 5G-enabled smartphones is likely to fuel sales of 5G chipsets, the high production costs associated with developing and producing these advanced processors may present financial issues for semiconductor manufacturers. This could result in higher prices for 5G chipsets discouraging smartphone manufacturers from adopting 5G technology or limiting their ability to provide competitively priced devices to consumers.

The integration of 5G chipsets into smartphones involves the development of other complementary ICs and components such as power management ICs, RF transceivers, and memory chips to ensure the functionality of 5G-enabled devices. This opens up potential for semiconductor businesses to diversify their product portfolios and generate additional revenue from the growing demand for 5G technologies. However, the total impact on the integrated circuit industry will be determined by a variety of factors including the rate of 5G deployment, advances in semiconductor manufacturing technology, and market dynamics influencing smartphone sales and pricing.

Gain access into 5G Chipset Market Report Methodology

Country/Region Wise Acumens

How Rapid Rise in the Investments Drive the 5G Chipset Market in Asia-Pacific Region?

Asia-pacific dominates the 5G chipset market. The significant increase in investments in the Asia-Pacific region is driving the growth of the 5G chipset market. With China, South Korea, and Japan at the forefront of 5G deployment and infrastructure development, significant investments are being made to build out 5G networks, upgrade existing infrastructure, and stimulate innovation in 5G technologies. These investments are accelerating the growth of 5G ecosystems and opening up chances for semiconductor makers to capitalise on the region’s growing demand for 5G chipsets.

The Asia-Pacific area has a vast and dynamic consumer market with a growing population and rising smartphone penetration fueling demand for 5G equipment. As consumers seek faster and more reliable connectivity, there is a growing appetite for smartphones, tablets, and other connected devices equipped with 5G technology. This surge in demand for 5G-enabled devices is driving investments in 5G chipsets as semiconductor company’s ramp up production to meet the growing needs of device manufacturers and network operators in the region.

Governments and regulatory agencies in Asia-Pacific are aggressively promoting the development and deployment of 5G technology through policy initiatives, incentives, and regulatory frameworks. Governments encourage investment from both the public and commercial sectors by creating an enabling environment for 5G deployment and innovation, hence boosting the growth of the 5G chipset market. These concerted efforts to hasten the adoption of 5G technology position the Asia-Pacific region as a key driver of development and innovation in the worldwide 5G chipset market with far-reaching implications for connectivity and digital transformation.

Will Significant Investment Boost the 5G Chipset Market in North America Region?

The North America region is the fastest-growing region in the 5G chipset market. Significant expenditures are expected to increase the North American 5G chipset market. As one of the main markets for 5G technology adoption and implementation, North America has seen significant investment from telecom operators, technology companies, and government agencies to build out 5G infrastructure, improve network coverage, and drive innovation in 5G technologies. These investments are accelerating the deployment of 5G networks throughout the area offering opportunities for semiconductor businesses to supply 5G chipsets to device manufacturers and network equipment providers.

The North American consumer market is huge and sophisticated with a significant demand for high-speed internet and modern mobile devices. As consumers desire faster data speeds, reduced latency, and more seamless connectivity experiences, there is an increasing demand for 5G-enabled smartphones, tablets, and other connected devices. This rise in demand for 5G-enabled devices is driving investment in 5G chipsets as semiconductor companies struggle to suit device manufacturers needs while also capitalising on the expanding market opportunity.

The supportive regulatory environment and government activities in North America are helping to drive the growth of the 5G chipset market. Government organisations and regulatory bodies collaborate closely with industry players to encourage 5G deployment, allot spectrum resources, and foster innovation in 5G technology. Governments encourage investments in the 5G ecosystem and drive adoption of 5G technology across multiple industries by offering incentives, subsidies, and funding support for 5G infrastructure projects and research programmes. Overall, large expenditures, high consumer demand, and supportive government policies are projected to drive growth in North America’s 5G chipset industry.

Competitive Landscape

The 5G chipset market is a dynamic and competitive industry, marked by a diverse array of players striving to capture market share. These companies are actively engaged in efforts to solidify their presence by implementing strategic initiatives such as collaborations, mergers, acquisitions, and garnering political support. With a focus on innovation, these organizations are continuously enhancing their product offerings to meet the diverse needs of consumers across various regions.

Some prominent players in 5G chipset market include

Intel, Huawei Technologies, Qualcomm Technologies, Anokiwave, Infineon Technologies, Integrated Device Technology, Xilinx, Nokia, Samsung Electronics, IBM.

Latest Developments

• In November 2020, Intel bought Cnvrg.io, a platform for managing, building, and automating machine learning.
• In December 2019, Intel Corporation stated that it has bought Habana Labs, an Israel-based developer of programmable deep learning accelerators for the data centre, for around $2 billion.

Report Scope

5G Chipset Market, By Category

Product

• Network Infrastructure Equipment
• Customer Premises Equipment (CPE)
• Devices

Integrated Circuit

• Radio Frequency Integrated Circuit (RFIC)
• Application-Specific Integrated Circuit (ASIC)
• Cellular Integrated Circuit (Cellular IC)
• Millimeter Wave Integrated Circuit (mm Wave IC)

Industry

• Building Automation
• Industrial Automation
• Automotive & Transportation
• Energy & Utilities
• Healthcare
• Public Safety & Surveillance
• Retail
• Consumer Electronics

Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology of Market Research

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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