5G Chipset Market Forecasts to 2028 – Global Analysis By Product (Customer Premises Equipment, Network Infrastructure Equipment and Other Products), Type (MODEMs, RFICs and Other Types), IC Type, Node Type, Operational Frequency, Application, End User and

5G Chipset Market Forecasts to 2028 – Global Analysis By Product (Customer Premises Equipment, Network Infrastructure Equipment and Other Products), Type (MODEMs, RFICs and Other Types), IC Type, Node Type, Operational Frequency, Application, End User and By Geography

According to Stratistics MRC, the Global 5G Chipset Market is accounted for $18.49 billion in 2022 and is expected to reach $60.10 billion by 2028 growing at a CAGR of 21.7% during the forecast period. A 5G chipset is a specialized component of customer premises equipment and network infrastructure equipment that allows the end user to create a wireless network based on 5G network specifications. The proliferation of internet-connected devices creates the need for a whole new wireless infrastructure known as 5G. Fifth-generation wireless (5G) is the mobile network generation that follows the current 4G LTE mobile network. These networks expand broadband wireless operational frequency beyond mobile internet to the Internet of Things (IoT) and critical communications segments, providing for a worldwide perception of complete connectivity.

According to the data from IBEF, the Government of India set an ambitious target of increasing manufacturing output contribution to 25% of Gross Domestic Product (GDP) by 2025, from 16% currently.

Market Dynamics

Driver

Increased demand for high-speed internet

Rising demand for high-speed internet and comprehensive network coverage for a variety of applications is expected to help the market throughout the forecast period. Growing distance learning, autonomous driving, multiuser gaming, and videoconferencing are expected to boost the 5G chipset industry. Other considerations include more live broadcasting, increased demand for telemedicine, and the growing popularity of augmented reality. For example, in June 2021, Reliance Jio (Mumbai) cooperated with NXP Semiconductor (Netherlands) to create a 5G NR O-RAN small cell solution utilizing NXP's Layerscape multicore processors. The combined solution powered new, high-performance RAN networks. It enabled a wide range of 5G use cases for internet access as well as Industry 4.0 and IoT applications such as telemedicine, tele-education, augmented and virtual reality, drone-based agricultural monitoring, and more. As a result, 5G cellular services are projected to gain traction in order to address the growing demand for high-speed internet and high-quality phone services.

Restraint

High cost of 5G Devices

The cost of 5G-capable smartphone chipsets will almost certainly be higher than the cost of current 4G chipsets. Only high-end smartphones were equipped with first-generation 5G chipsets. Second- and third-generation chipsets were used for mass deployment in 2020–2021. Only a few high-end smartphones have Qualcomm's flagship Snapdragon 8-series processor, which supports only 5G. The company has expanded its 5G range by making its 7-series and 6-series lineups available on 5G. Snapdragon 765 and Snapdragon 690 are already available for mid-range smartphones. The 4-series chipset, which is used in lower-cost phones, was released to a wider audience. Prices for MediaTek and Qualcomm are expected to fall more in the future, which is projected to impede the fog computing market's growth.

Opportunity

Rising demand from autonomous cars, smart cities, and healthcare sector

The 5G network provides several benefits, such as high-speed data transfer rates, low latency, and reliable connectivity, all of which are easily handled with previous-generation technology. These properties are useful in a variety of businesses. For example, in autonomous or connected vehicles, 5G network latency is crucial for implementing safety systems and real-time V2V and V2I communications. Dense arrays of wireless sensors in smart cities provide a variety of services and applications, ranging from environmental services and pollution monitoring to security surveillance, traffic control, and smart parking. Evidently, 5G infrastructure plays an important role in satisfying the diverse needs of the countless connected devices and sensors that are being deployed.

Threat

Design challenges in RF Front Modules

Demand for wireless communication systems with robust transmitting and receiving performance is growing tremendously as society shifts toward emerging technologies. Increased efficiency extends the operational period of battery-powered products, lowering the energy consumption of wireless base stations and comparable applications. It is the responsibility of the RF device designer to balance and reduce operating condition sensitivity while delivering an easily implementable device that can suit the diverse requirements of the targeted applications. As a result, accommodating all evolving technologies while building robust RF semiconductor devices is difficult.

Covid-19 Impact

The COVID-19 pandemic has moderately impacted the market. The pandemic has disrupted the global supply chain, leading to shortages of raw materials and components as well as logistics issues that have affected the production and distribution of 5G chipsets. This has caused delays in product launches and increased prices due to supply chain disruptions. However, as the demand for digital services and technologies, including remote work, online education, e-commerce, and telemedicine, among others, increased, there was an increased demand for 5G-enabled devices such as smart phones, laptops, and IoT devices, driving the demand for 5G chipsets.

The Sub-6 GHz segment is expected to be the largest during the forecast period

5G devices operating in the sub-6 GHz frequency region are expected to play a key role in providing comprehensive coverage and enabling a wide range of use cases. Companies like Huawei and ZTE do 90% of their work at sub-6 GHz. Sub-1 GHz frequencies provide 5G services in urban, suburban, and rural locations, and they may also play a role in IoT services. This spectrum will most likely aid in the delivery of 5G services to hard-to-reach and densely populated public places. 5G coverage and capacity applications employ spectrum from 1 to 6 GHz, thereby boosting market growth.

The Automobile segment is expected to have the highest CAGR during the forecast period

5G is projected to enable new applications in the automotive industry, including vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and vehicle-to-vehicle (V2V). As 5G technology advances, it is projected to offer new business models and services such as autonomous vehicles and AI-based platforms, which will increase autonomy in manufacturing applications. Furthermore, 5G Chipsets are gaining popularity in the telecommunications industry as a result of increased investments by major telecom companies in developing 5G chipset modules for telecom base stations and broadband gateway devices, as well as rising demand for high-speed data connectivity for conducting virtual meetings, which is a crucial factor fostering the expansion of the global market.

Region with largest share

The Asia Pacific 5G chipset market dominated the global market in terms of revenue share, and it is anticipated that this dominance will continue over the course of the forecasted period. The 5G network would be critical for modern technologies like IoT and M2M connectivity, as well as applications like smart cities and industrial automation. 5G connectivity is well suited to these locations since it allows for the simultaneous connection of various devices and has minimal latency, which increases total system performance. According to the GSMA, there will be 430 million mobile connections on 5G networks in Asia Pacific by 2025. Mobile operators in the Asia Pacific region are expected to invest USD 227 billion on 5G deployments between FY 2022 and FY 2025. With 5G already available in 19 countries and more on the way, Asia Pacific is expected to be the largest market for 5G chipsets over the forecast period.

Region with highest CAGR

North America is one of the most important regions for the market's growth. The United States has contributed the majority of the region's market growth. Demand from IoT, M2M communications, mobile broadband, and other developing applications is driving the surge. Furthermore, the United States, as the home of some of the market's most notable competitors and a pioneer in the adoption of 5G connections, is one of the major variables projected to affect the market's growth. The White House recently unveiled its National Strategy to Secure 5G in the United States, which focuses on improving and safeguarding 5G infrastructure both at home and overseas. This will drive the region's need for 5G chipsets.

Key players in the market

Some of the key players in 5G Chipset Market include Analog Devices, Inc., Anokiwave Inc, Arm Limited, Broadcom Inc., Cadence Design Systems, Inc., Cavium Inc., Ericsson Ab, Fibocom Wireless Inc., Fujitsu Limited, Huawei Technologies Co., Ltd., Infineon Technologies Ag, Intel Corporation, Macom, Marvell Technology Group Ltd., Mediatek Inc., Murata Manufacturing Co., Ltd., Nokia Corporation, Nxp Semiconductors, Ommic, Qorvo, Inc., Qualcomm Technologies, Inc., Quectel, Renesas Electronics Corporation, Samsung Electronics Co. Ltd, Sivers Ima, Skyworks Solutions, Inc., Texas Instruments Inc., U-Blox, Unisoc (Shanghai) Technologies Co., Ltd., Xilinx Inc. And Zte Corporation

Key Developments

In December 2022, MediaTek Inc. announced its newest chipset for premium 5G smartphones. Smartphones, the Dimensity 8200. The new chipset delivers unparalleled power efficiency. It also integrates an octa-core CPU with four Arm Cortex-A78 cores operating up to 3.1 GHz and a powerful Mali-G610 graphics engine for better application performance

In September 2022, Qualcomm developed two new mobile chipsets namely, Snapdragon 6 Gen 1 and Snapdragon 4 Gen 1. Through this product launch, company targets to enter mid-range and entry level smart phone markets of countries such as India

In April 2022, Analog Devices launched mmw 5G front end chipset, which is designed to reduce complexities for producing faster radios. This chipset works on a frequency of 24-47 GHz radio waves

In June 2021, Samsung launched wide range of chipsets which will be incorporated in its next generation 5G solutions

In September 2020, Qualcomm Technologies, Inc., developed a new 5G mobile platforms in the 7-series, the Snapdragon 750G 5G Mobile platform, which allows smooth HDR gaming and on-device AI

Products Covered
• Customer Premises Equipment
• Network Infrastructure Equipment
• Other Products

Types Covered
• MODEMs
• RFICs
• Other Types

IC Types Covered
• Application-specific Integrated Circuits (ASIC)
• Radio Frequency Integrated Circuit (RFIC)
• Cellular IC
• Field-programmable Gate Array (FPGA)
• Millimeter Wave Technology Chips (mmWave IC)

Node Types Covered
• Less than 10 NM
• 10-28 NM
• Above 28 nm

Operational Frequencies Covered
• Sub 6GHz
• Between 26 & 39 Ghz
• Above 39 Ghz

Applications Covered
• Automotive & Transportation
• Energy & Utilities
• Healthcare
• Retail
• Consumer Electronics
• Industrial Automation
• Other Applications

End Users Covered
• Telecommunication Infrastructure
• Mobile Devices
• Non-Mobile Devices
• Automobile

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements