According to a report published by ResearchAndMarkets, the 5G chipset market is expected to grow from USD 2.03 Billion in 2020 to USD 22.41 Billion by 2026. The market is expected to grow at a CAGR of 49.2% from 2020 to 2026. The major driver for the growth of this market will be the growing demand for high-speed internet and broad network coverage with reduced latency and power consumption. Moreover, increasing M2M/IoT connections and increasing demand for mobile data services are propelling the market growth.
In the IC type segment, ASIC is expected to hold the largest share of the 5G chipset market during the forecast period. Demand for ASICs in high-end smartphones is likely to be the key factor propelling the growth of the market. Many companies are in the process of developing ASIC chipsets to emerge as early providers and showcase commercial readiness for 5G.
In the operational frequency segment, sub-6 GHz frequency is expected to hold the largest share of the 5G chipset market. The market for mmWave frequency band (between 26 and 39 GHz) is expected to witness the highest growth during the forecast period. The wide availability of this frequency band and the ability to cater to multiple 5G use cases are likely to be the prime factors driving the adoption of this spectrum. High bandwidth offered by mmWave spectrum and the improving participation of telecom service providers in this spectrum are fueling the growth of this frequency band.
In the product segment, devices are expected to hold the largest market share. Demand for 5G-enabled smartphones is likely to be the key factor propelling the growth of the 5G chipset market. In addition, the development of cellular modems for consumer devices such as smartphones, tablets, and laptops by companies such as Qualcomm (US) and Intel (US), and their partnerships with leading OEMs and carriers are expected to boost the growth of 5G devices by 2020.
Among the various end-user industries covered in the report, consumer electronics is expected to hold the largest market share. In the consumer electronics segment, 5G connectivity would have a major impact on smartphones, tablets, AR and VR devices, and wearable devices, among others. Smartphones and tablets will be the key attraction in the consumer electronics market for 5G network.
By region, North America is likely to hold the largest market share in terms of revenue in 2020. High demand for advanced technologies such as connected cars, machine-to-machine communication, and artificial intelligence will offer huge opportunities for the growth of the 5G chipset market in North America. Moreover, North America is one of the leading markets for 5G in terms of R&D in 5G technology, network design/deployment, and the presences of key market players. The market in APAC is expected to grow at the highest CAGR from 2020 to 2026. The growth of on-demand video services and IoT will drive the growth of the market in APAC.
The key restraining factors for this market will be the high hardware cost involved in terrestrial network densification and fragmented spectrum allocation. Qualcomm Technologies (US), Intel (US), Nokia (Finland), Samsung Electronics (US), Huawei (China), and Xilinx (US) are some of the leading players in the 5G chipset market.
These companies are focusing on organic as well as inorganic growth strategies for their market expansion. New product developments/launches and collaborations/partnerships remain the key strategies for companies such as Intel, Nokia, Qualcomm, Samsung, and Qorvo. In January 2018, Intel (US), Deutsche Telecom (Germany), and Huawei (China) conducted the world's first over-the-air test showcasing 5G interoperability and development testing (IODT) based on the Release 15 NSA 5G NR specification. The test was based on Huawei's 5G commercial base station and Intel's third-generation 5G NR Mobile Trial Platform.
ResearchAndMarkets.com recently added the "5G Chipset Market by IC Type, Operational Frequency, Product, End-User Industry, and Geography - Global Forecast to 2026" report to its offering.
