The Global 5G Chipset Market is valued at USD 2.12 Billion in 2020 and is anticipated to grow with a CAGR of 56.2% during the forecast period from 2020 to 2028. The major factors that are contributing to the growth of the market include an increasing demand for wide network coverage and high-speed Internet, along with low latency and power-efficient networking devices. Also, the growing demand for mobile data services and government support for the development of network infrastructure are driving the growth of the 5G chipset market.
5G technology has spanned across various markets, from smart cities and connected cars to the internet of things (IoT) and smartphones. The high adoption of 5G technology across these markets has created significant demand for the 5G ready chipset. Major chipset manufacturers have already started manufacturing 5G ready chipsets and platforms.
The key telecom companies including Verizon Communications, Huawei Technologies, Nokia corporation, ZTE corporation, AT&T, Inc., and China Telecom Corporation Limited are making considerable investments for the deployment of 5G network infrastructure, which will further provide high-speed connectivity to end-users. Such developments in 5G network infrastructure have boosted the adoption of 5G chipset-enabled devices worldwide, which will drive the growth of the 5G chipset market during the forecast period. However, the coronavirus (Covid-19) outbreak has delayed 5G launch and has limited the development of 5G infrastructure, which is expected to hamper the growth of the 5G chipset market.
The ASIC type of IC are the preferred type of ICs in the global 5G chipset market. Major players in the market are making significant investments for the development of ASIC chipsets to gain competitive advantage in the market. For instance, Samsung Electronics in 2017 has launched ASIC chipsets that are required for 5G modems. This chipset has applications in building 5G-enabled radio base stations and home routers.
Global 5G Chipset Market, by IC Type
In terms of IC type, the application-specific integrated circuit (ASIC) segment is holding a major share in the global 5G chipset market in 2020 and is anticipated to remain the largest segment during the forecast period. Major players in the market are investing for developing ASIC chipsets to gain a competitive advantage in the market. For instance, Samsung Electronics in 2017 has launched ASIC chipsets required for 5G modems. This chipset has applications in building 5G-enabled radio base stations and home routers.
Global 5G Chipset Market, by Product
In terms of product, the network infrastructure equipment segment of the 5G chipset market is leading the global market in 2020 due to the increasing adoption of 5G chipsets in the development and expansion of 5G network infrastructure equipment. Also, the devices segment is expected to grow at the highest CAGR due to the growing use of 5G chipsets in various devices, mainly in smartphones and other handheld devices.
Global 5G Chipset Market, by Operational Frequency
In terms of operational frequency, the sub-6 GHz segment of 5G Chipset market has captured the largest share in 2020, as this frequency is used to deliver 5G services across a wide area and to provide broad coverage. This type of frequency supports 5G services in suburban, urban, and rural areas, and it also provides 5G services in IoT services.
Global 5G Chipset Market, by End-User Industry
In terms of the end-user industry, the consumer electronics segment has captured the largest market share in 2020 due to the higher implementation of 5G chipsets across consumer electronics applications.
Global 5G Chipset Market, by Region:
In terms of region, the Asia Pacific region is expected to be the fastest growing region in the global 5G Chipset market during the forecast period. The major contributing factors are growing research and development activities and investments related to 5G in countries such as India, China, Japan, and South Korea. Additionally, the major market players such as Huawei Technologies, ZTE corporation, Nokia Corporation and others are investing a significant amount for initiating the field trials with major mobile service carriers such as China Unicom, China Mobile, and SoftBank. This will further provide lucrative growth opportunities for the 5G chipset market during the forecast period.
Some Major Findings of 5G Chipset Market Report Include:
By IC Type:
By Operational Frequency
By End-User Industry
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