5G Chipset Market Size Worth $28.79bn by 2027

The global 5G Chipset market size is expected to reach $28.79bn by 2027 according to a new study by Polaris Market Research. The report gives a detailed insight into current market dynamics and provides analysis on future market growth.

5G Chipset is a set of integrated circuits and its implementation is dependent upon several components & specifications. The telecom service providers are switching to 5G cellular networks which is highly depends on denser arrays of short sized antennas that offer ultra-high data speeds.

Surge in usage of digital devices, in which mobile devices is being the preferred device through which customers can consume online media including audio and video streaming, file sharing applications, among others. However, it has been a compelling factor to adopt 5G technology for higher consistency & lower latency in comparison to the previous technologies in the market.

Furthermore, the outbreak of COVID-19 has dramatically changed the prospects of the demand for 5G chipset in the market. In addition, several industrial verticals have jolted globally resulting in a significant slowdown of production and therefore, incorporating of 5G chipset & its demand has impacted in the market.

In 2019, the Sub-6 GHz segment accounted for the highest market share. The growing need for fast data networks capable of delivering higher bandwidth supports the growth of this segment. Increasing investments in development of 5G networks, along with technological advancement in telecommunication industry is expected to drive market growth during the forecast period. The increasing implementation of industrial internet of things, smart homes, and autonomous vehicles further supplement the growth of this segment.

The end-users of 5G Chipset include healthcare, manufacturing, it and telecom, retail, automotive and transportation, consumer electronics, energy and utilities, and others. The consumer electronics segment accounted for a significant share in 2019 owing to growing adoption of smart phones and other mobile devices, rising disposable income, and introduction of low-cost smartphones. The demand from the automotive sector is expected to increase during the forecast period.

Increasing development of connected cars, and investments in research and development of smart and self-driving cars boosts the market growth. Use of 5G and IoT in transportation sector for fleet management, parking management, logistics management, and automotive analytics result in improved traffic management, optimized fuel usage, and efficient travel routes.

 The demand for application-specific integrated circuits is expected to be high during the forecast period. The increasing adoption of 5G chipsets enables businesses to connect devices to the internet at a growing pace. Large amounts of data generation coupled with analytics capabilities is expected to generate insights and automate processes at workplaces and businesses, driving the growth of this segment.

The adoption of 5G chipsets would provide a more connected and smarter world, enabling high speed data services, increased productivity, and improved overall efficiency. These circuits enable collaboration between connected industrial ecosystems, humans, and machines leading to greater productivity and more engaging work experiences.

Asia-Pacific accounted for a significant share of the global 5G chipset market in 2019. The rising adoption of smart technologies, IoT, automation, and artificial intelligence across industries such as retail, healthcare, transportation, and manufacturing boost the market growth in Asia-Pacific. Growing population, rising penetration of mobile device, and integration of smart technologies for increased operational efficiency supports market growth. There have been have significant investments in development of 5G enabled networks to support the emerging industries such as telecommunication, automotive, and energy & utilities in the region.

Increased demand for smart manufacturing & adoption of 5G chipset components mainly in emerging economies such as China, Japan, and India are fueling the market growth over the forecast period. Moreover, the development of the manufacturing industry in order to enhance the overall productivity and automating their production lines by deploying various digitalization solutions. Therefore, the demand for 5G chipset in the manufacturing processes are becoming major growth factor over the forecast period.

Some of the major market participants include Texas Instruments, Cavium, Anokiwave, Samsung Electronics, IBM, Infineon Technologies, Nokia, Huawei Technologies, MediaTek, Xilinx, Broadcom, Qualcomm, Qorvo, Unisoc Communications, Integrated Device Technology, Intel, Renesas Electronics, NXP Semiconductors, and Analog Devices.

Key players in the market are focusing on launching new products & developing existing offering and have adopted various strategies to expand their foothold in the market. For instance, Nokia and Broadcom has collaborated on the development of silicon technology processor by expanding range of 5G ReefShark chipsets portfolio.

Power consumption is also reduced in ReefShark chipsets. Recently, Taiwanese based chipmaker MediaTek launched Dimensity 720 5G chipset fully integrated into 7nm SoCs (system-on-chips) for premium 5G experience for mid-range smartphones while supports both standalone and non-standalone sub-6GHz networks.

Owing to technological advancements, and growing need to improve secure communication, companies operating in the market are collaborating in order to retain the customers and gain market share. Broadening of product portfolio is another trend that is visible in the industry.

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