5G Chipset Market, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4219
5G Chipset Market size will flourish from 2019 to 2025 with growing demand for faster speed and greater bandwidth for accessing various internet services such as streaming videos online, broadband connections, and other networking applications. 5G is atleast 40 times faster than 4G LTE and companies such as AT&T, Samsung, Verizon are exploring potential by testing new advances in chips, signal processing and antenna technologies. The other benefits of these technologies, such as low power consumption, larger area coverage, device portability, massive MIMO, beamforming (5G technology that enhances route optimization), are creating a greater potential for their adoption in consumer electronics devices such as smartphones and other wireless devices.
The growing investments in networking infrastructure for wider broadband range and network coverage is influencing the growth of the 5G chipset market. 5G cellular network technology developments are creating their demand in multiple sectors such as healthcare, education, transportation, commercial offices, banking & finance, and other organizations. Rapid growth in data consumption and the emergence of smart devices such as home automation, drones and self- driving cars will augment the industry growth. These devices require very low latency to operate reliably in real time. In addition, developments in embedded computing requiring high speed internet and growing strategic collaborations for incorporating this technology for satellite communication will create growth opportunities for 5G chipset market. However, high initial cost for deployment of 5G will be a barrier hindering wide adoption across emerging economies which requires extensive network functions virtualization and SDN.
Smartphone manufacturers are inclined towards integrating these chips in their devices which will be one of the major product segments in the 5G Chipset market. According to the GSMA, there were 5.1 billion unique mobile subscribers globally in 2018. The declining smartphone prices and rapid technological advancements in consumer electronics technologies are creating a strong demand for high processing network hardware globally. The growth of 5G network will push smartphone and wearable device manufacturers to integrate these chips into their product offerings to provide extended features such as faster data transfer rates, streaming services, and improved communication to consumers. The demand for 5G chips will be driven by smartphone manufacturers, such as Sony, Samsung, and Nokia, with the penetration of 5G chipsets for other wearable devices, augmenting the 5G Chipset market.
The emergence of IoT market is fueling the development of faster technologies creating opportunities for 5G Chipset market. IoT technologies have connected a large number of devices through the internet and network, which includes machines, office equipment, household appliances, smart home devices, and many others. This is creating a greater demand for data transfer and networking to ensure faster and efficient operations. For instance, organizations and enterprises are using IoT devices for better data exchanges within manufacturers, operators, and connected devices. IoT technologies have helped to provide real-time guidance to the workforce about inventories as well as customers. The improved data management allows businesses to manage risks more effectively.
Smart city projects, such as city of Barcelona, with deployments for smart bins, driverless metro, smart parking spaces, digital bus services, and others is driving the 5G Chipset market. These include free internet access through the city’s Wi-Fi networks. Connected car market is another emerging application area for networking devices. Features, such as media streaming, navigation systems, and ADAS, are creating a demand for networking technologies in automotive. In addition, companies are developing connected cars for improving vehicle safety though better communication with outside vehicles, route optimization, and others
Asia Pacific is expected to be the dominant region for the 5G Chipset market owing to the large telecommunication industry and early adoption of 5G technologies. The Asia Pacific countries are at rapid development stages in digitization and have over 1.9 billion mobile internet users in 2018, which is expected to reach 2.7 billion by 2025 according to the GSM Association. Countries including South Korea, Australia, and Japan are undergoing fast developments for becoming early adopters in 5G network technologies. For instance, in April 2019, KT Corporation from South Korea launched the first nationwide commercial 5G network for consumers and enterprises. In May 2019, Huawei announced that it will be launching a 5G lab in South Korea.
Some of the key players include Qualcomm, Samsung Electronics, Huawei, Media Tek, and Intel. The companies are heavily investing in research and development activities to become early providers and have a greater market share. For instance, Huawei Technologies, in July 2018, announced that the company will be increasing the annual investment for research and development activities to between USD 15 billion to USD 20 billion for strengthening its position as a global leader in 5G technologies. In July, 2019 Apple acquired Intel modem business for USD 1 billion with the primary focus on developing technology for 5G network. Strategic partnerships & investments are further influencing the industry growth, for instance, in September 2018, Ericsson announced USD 3.5 billion contract for supporting the nationwide 5G technologies deployment of T-mobile. In February 2018, Nokia collaborated with Hamburg Port Authority and Deutsche Telekom for 5G research and industrial environment developments.
5G chipset market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2015 to 2025 for the following segments:
By IC Type
- Millimeter Wave IC
- Low frequency
- High frequency
- Millimeter wave bands
- Consumer electronics
- Retail and enterprises
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa (MEA)
- South Africa
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