According to a new research report from Grand View Research, the global 5G chipset market size is estimated to reach USD 21,786.21 million by 2025, exhibiting a CAGR of 69.7% from 2020 to 2025. The rapidly rising demand for ultra-reliable and low-latency data networks capable of delivering seamless connectivity is estimated to boost the market growth over the forecast period. As such, the 5G chipset is turning out to be an integral part of modern telecommunication equipment. It can be found in the latest smartphones, laptops, base stations, modems, and routers. These chipsets are also being installed in connected vehicles deployed as part of autonomous vehicle systems to provide improved Vehicle-to-Everything (V2X) connectivity.
The growing popularity of 5G-enabled smartphones is emerging as a major factor CAGR of 69.7% that is estimated to propel the market growth over the forecast period. Key smartphone manufacturers are responding to the growing demand for 5G smartphones by investing aggressively on vertical integration in order to diversify their business and augment their revenues. For instance, in July 2019, Apple, Inc. acquired Intel Corporation's smartphone modem business segment for USD 1.0 billion. The acquisition was primarily focused on developing 5G chipset components for Apple Inc.'s new upcoming 5G-enabled iPhone.
5G chipset components are expected to play a crucial role in smart city projects by facilitating seamless connectivity for smart infrastructure, smart grids, smart streetlights, and building energy automation devices. These chipsets are also poised to become an integral part of the manufacturing sector by enabling ultra-low latency and high-reliability connectivity for various critical applications, such as remote process monitoring and control. The growing deployment of these chipsets to provide robust connectivity for machines to machine (M2M) communications in the manufacturing sector is anticipated to drive the market growth over the forecast period.
However, rising concerns over the security of the data being exchanged over fifth-generation networks are expected in hinder the market growth. Particularly in countries, such as the U.S., the U.K., and Germany, among others, governments are highly concerned about data security and privacy issues. Several governments have also drafted stringent regulations and policies to ensure the security of the data being transferred over fifth-generation networks.
Key takeaways from the report:
- The U.S. regional market is anticipated to reach USD 283.88 million by 2019 owing to the aggressive investments being made by key market players on developing 5G chipset components
- The Asia Pacific regional market is anticipated to register a CAGR of 74.4% owing to the growing demand for 5G-enabled smartphones and aggressive investments on rolling out fifth-generation network infrastructure by key players, such as Huawei Technologies Co., Ltd. Of China
- The smartphones/tablets segment is estimated to reach USD 627.07 million by 2019 owing to the initial focus on developing 5G chipset components for smartphones applications, such as UHD video, augmented reality (AR) gaming, and virtual reality (VR) gaming, among others
- Key market players are increasingly focusing on developing new 5G chipset components, such as multi-mode chipsets and single-mode standalone chipsets, as part of the strategy to expand the product portfolio and strengthen the foothold in the market
- Key players in the 5G chipset market include Qualcomm Incorporated; Intel Corporation; Huawei Technologies Co. Ltd.; Samsung Electronics Co., Ltd.; MediaTek Inc.; Unisoc Communications, Inc.; Xilinx Inc.; Qorvo, Inc.; and Infineon Technologies AG; among others.
To read the full report, click here.
