5G Chipset Market Size, Share, Growth Analysis, By Frequency Type, By Node, By Deployment, By Vertical outlook, By Region - Industry Forecast 2024-2031

5G Chipset Market size was valued at USD 16.04 Billion in 2022 and is poised to grow from USD 19.28 billion in 2023 to USD 92.05 billion by 2031, growing at a CAGR of 21.8% in the forecast period (2024-2031).

A 5G chipset functions as a specialized component within customer premises equipment and network infrastructure, facilitating the establishment of wireless networks based on 5G specifications. The increasing prevalence of internet-connected devices necessitates a new wireless infrastructure, commonly referred to as 5G. Fifth-generation wireless (5G) represents the next iteration in mobile network technology, succeeding the current 4G LTE network. These networks extend broadband wireless operational frequency beyond mobile internet to encompass the Internet of Things (IoT) and critical communications sectors, enabling a globally pervasive connectivity experience. The 5G chipset market is poised for substantial growth in the forecast period, primarily driven by the proliferation of M2M/IoT connections. Additionally, heightened demand for high-speed internet and extensive network coverage contributes to market expansion. Moreover, the surge in demand for mobile broadband operational frequency is anticipated to fuel growth in the 5G chipset market. Major telecom operators worldwide, including AT&T, Inc., Verizon Communications, and China Telecom Corporation Limited, are heavily investing in deploying 5G network infrastructure to offer high-speed connectivity to their customers. Furthermore, governments across the globe are focusing on implementing policies pertaining to 5G technology and applications, intensifying global competition among operators in large-scale commercial deployment and vertical industries testing of 5G.

Top-down and bottom-up approaches were used to estimate and validate the size of the 5G Chipset market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

5G Chipset Market Segmental Analysis

5G chipset market is segmented based on frequency type, node type, deployment type, vertical outlook, and region. Based on frequency type, 5G Chipset Market is categorized into sub-6GHz mmWave, sub-6GHz+ mmWave. Based on node type, 5G Chipset Market is categorized into: 7 nm, 10 nm. Based on deployment type, 5G Chipset Market is categorized into telecom base station equipment, smartphones/tablets, single-mode connected vehicles, connected devices, broadband access gateway devices. Based on vertical outlook 5G Chipset Market is categorized into manufacturing, energy & utilities, media & entertainment, IT & telecom, transportation & logistics, and healthcare. Based on region, 5G Chipset Market is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the 5G Chipset Market

The anticipated impact of 5G on machine-to-machine (M2M) and Internet of Things (IoT) communications is significant, driven by enhanced speed and reliability. Improved connectivity, facilitating seamless communication, and reduced power requirements are pivotal factors fostering the adoption of new M2M technologies. However, the current capacity of mobile networks is insufficient to accommodate the billions of nodes expected to proliferate in the coming years, along with the diverse communication patterns, including latency considerations, of both M2M and human-based communications. Therefore, there is a pressing need for a next-generation cellular network with hyper-connectivity and increased bandwidth, exemplified by the 5G network, to effectively support M2M communication. This technology is poised to find widespread applications in heavy manufacturing and process industries, such as the food sector, aiming to enhance process efficiency and minimize human intervention with machines. Consequently, M2M communication is projected to be a key driver of the 5G chipset market.

Restraints in the 5G Chipset Market

Smartphone chipsets designed to accommodate 5G technology are anticipated to command higher prices compared to their 4G counterparts available today. In 2019, initial offerings of first-generation 5G chipsets were limited to high-end smartphones. The widespread adoption of 5G devices utilizing second-generation chipsets is projected for 2020, with further enhancements in performance-optimized 5G devices expected by 2021. Currently, Qualcomm exclusively integrates 5G support into its premier Snapdragon 8-series System on Chips (SoCs), featured in a select number of premium smartphones. However, the company plans to expand its 5G portfolio by incorporating 5G capabilities into its 7-series and 6-series product lines. Mid-range smartphones already feature Snapdragon 765 and Snapdragon 690 chipsets. Nevertheless, the company has not disclosed any plans to integrate 5G into its 4-series chipsets, typically utilized in more budget-friendly smartphones.

Market Trends of the 5G Chipset Market

Intelligent cities and smart infrastructure represent crucial facets of IoT applications, with organizations increasingly leveraging IoT for monitoring equipment efficiency, thereby driving up the demand for 5G chipsets. Industries have the opportunity to enhance customer experiences through the integration of AI and 5G technologies, deploying tailored intelligent solutions to bolster industrial electronics systems, fostering a smarter business environment, and fostering exploration and innovation in emerging sectors. There is a notable upward trend in substantial investments in new and improved 5G chipsets within the market. For instance, in 2018, Nokia and three other telecom carriers in China committed to investing USD 2 billion. Major corporations such as Verizon Inc. and AT&T are also making significant investments in this sector.