5G Chipsets Market Analysis

5G Chipsets Market Analysis

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Based on vertical, the market is segmented into automotive, consumer electronics, energy & utilities, healthcare, industrial, IT & telecommunication, Others. The automotive segment accounted for a business share of over 30% in 2023. The automotive segment is a key driver of growth within the 5G chipset market, experiencing transformative changes as connected vehicles become an integral part of the automotive landscape. The deployment of 5G chipsets in automobiles is revolutionizing the driving experience by enabling advanced connectivity features and paving the way for the realization of autonomous driving.

One of the primary growth drivers in the automotive segment is the increasing demand for enhanced in-vehicle connectivity. 5G chipsets enable high-speed and low-latency communication, facilitating real-time data exchange between vehicles and the infrastructure. This connectivity is crucial for applications such as advanced driver assistance systems (ADAS), real-time navigation, and vehicle-to-everything (V2X) communication, improving road safety and overall driving efficiency.

Based on deployment type, the 5G chipsets market is segmented into telecom base station equipment, smartphones/tablets, connected vehicles, connected devices, broadband access gateway devices, others. The smartphones/tablets segment is estimated to register a significant growth rate of over 16.5% CAGR during the forecast period of 2024-2032.  Increasing consumer demand for faster and more reliable mobile connectivity is a major factor contributing to the segment progress. With the rise of mobile video streaming, online gaming, and other data-intensive applications, consumers are looking for smartphones that can deliver faster data speeds and lower latency.

This has led to the development of 5G chipsets that are optimized for use in smartphones, offering advanced features such as support for multiple bands, higher data rates, and improved power efficiency. the ongoing expansion of 5G networks globally, creating a foundation for widespread device adoption. Additionally, the launch of a diverse range of 5G-compatible smartphones and tablets by leading manufacturers stimulates market expansion. The increasing consumer demand for immersive experiences, such as augmented reality and high-definition streaming, further fuels the need for advanced 5G chipsets in these devices.

Asia Pacific witnessed significant share in the global 5G Chipsets market in 2023, accounting for a business share of over 22%. This is attributable to the rapid rise for high-speed connectivity and the increasing adoption of advanced technologies such as IoT, AI, and cloud computing. The use of 5G chipsets can help meet this demand by enabling faster and more reliable connectivity, which can support a wide range of applications and services. This trend is driving the development of new use cases and applications in areas such as smart cities, healthcare, education, and transportation. Additionally, the Asia Pacific region is home to several leading manufacturers of 5G chipsets, which is driving innovation and competition in the regional market.