5G Chipset Market Size, Share & COVID-19 Impact 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 (Smartphones, Connected Vehicles, Connected Devices, Broadband Access Gateway Devices), By Industry Vertical (Energy & Utilities, Manufacturing, IT & Telecommunication, Media & Entertainment, Transportation and Logistics, Consumer Electronics, Healthcare), and Regional Forecast, 2023-2030

The 5G chipset market size was valued at USD 19.69 billion in 2022 and is projected to grow from USD 25.30 billion in 2023 to USD 218.04 billion by 2030, exhibiting a CAGR of 36.0% during the forecast period (2023-2030). Asia Pacific accounted for a market value of USD 7.61 billion in 2022. 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. 

COVID-19 IMPACT

Increasing Adoption of Work from Home Boosted Product Demand Amid the Pandemic

The electronic and semiconductor industry vertical has been substantially affected due to the exponential growth of COVID-19 cases all over the globe. The continuously growing global IT and telecommunication industry and rapidly changing customer buying behavior are responsible for increasing the inclination toward next-gen chipset products. However, various government authorities worldwide have imposed global lockdowns, which is majorly affecting the work from office culture of multiple sectors. 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.

Furthermore, during the COVID-19 outbreak, most businesses started the implementation of emerging technologies such as artificial intelligence and the Internet of Things. The growing use of these technologies is increasing the need for high-speed and low-latency network connections, which is only possible through the effective installation of a 5G chipset in the electronic device. 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. However, in the post-pandemic era, the demand for advanced technologies, robust growth in the 5G network, and increasing work-from-home concept reinforced the growth aspects of the global market.   

LATEST TRENDS

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

Over the last two decades, various industry verticals are shifting their businesses toward digital platforms. Hence, digitization is one of the priorities of all industry verticals. This digitization includes implementing high-end cutting-edge technologies such as industrial Internet of Things, industrial automation, and artificial intelligence. The seamless operation of advanced technology requires high speed and a low latency internet connection, which using 5G can achieve enabled chipsets. Furthermore, these 5G processors and 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, driving market growth. Moreover, 5G chipset is widely used in manufacturing for better intercommunication between production machines and machine operators. This frequent use of chipsets is driving the global market.

5G CHIPSET MARKET GROWTH FACTORS

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

The demand for high-speed and low-latency internet connections has been increasing since the last decade. This increases the need for high-speed internet networks, and high-speed data transfer for rapid information processing is propelling the use of 5G network technology. 5G technology also increases overall smartphone and connected device performance. For instance, in October 2022, Telecom-Talk, a telecommunication related 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.  

SEGMENTATION

By Type Analysis

ASIC Segment Dominated the 5G Chipset Market in 2022 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 2022. 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 2022. 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 2022 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

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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 2022, 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.

REGIONAL INSIGHTS

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Asia Pacific dominated the 5G chipset market with a share of 38.64% and was valued at USD 7.61 billion in 2022. Asia Pacific held a significant share and will dominate the global 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. 

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.

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 2022 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. For instance, in June 2020, National Telecommunications and Information Administration of the U.S. launched its national strategy for implementing 5G in the country, promoting market growth. 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.    

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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 2022. 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 Key Companies Profiled In 5G Chipset Market:

• 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:

• June 2021 – Samsung Electronics is a significant consumer electronic products provider. The company launched its new 3GPP Rel.16 compliant chipsets, which are compatible with the next generation 5G mmWave radio frequency integrated circuit and 5G modem System-on-Chip (SoC). This product can effectively operate functions on a high-speed 5G low latency network.   


• April 2020 – Xilinx Inc., a semiconductor and electronics equipment manufacturer, partnered with Samsung Electronics. Through this partnership, both companies developed next-generation 5G-enabled chips and 5G-related platforms using the Xilinx Versal Adaptive Compute Acceleration Platform (ACAP).


• January 2022 – Huawei Corporation Co. Ltd. is a leading global communication, network, and electronics device and solution provider. This company launched its first commercial 5G device: Huawei 5G CPE Pro and 5G multi-mode chipset Balong 5000. These devices and chipsets can provide better service to Huawei Corporation Co Ltd. smartphone customers.


• May 2021– Intel Corporation and Mediatech provide high-tech processors and chipsets to retail and business customers. Both the organizations collaboratively launched two new 11th-gen U-Series chips used in thin, lightweight laptops. This chipset is enabled with the first 5G M.2 technology.


• February 2022 – Intel Corporation, a high-end chipset provider, launched its new 5G enabled chipset, Xeon Server processor. This 5G processor is specially designed for the high-end 5G carrier infrastructure and data center network.  

REPORT COVERAGE

An Infographic Representation of 5G Chipset Market

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The 5G chipset market 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.

Report Scope and Segmentation