The 5G chipset market is estimated to increase at a CAGR of 26.7 percent from USD 12.8 billion in 2020 to USD 67.2 billion in 2027. The growing need for high-speed internet and broad network coverage, expanding cellular IoT connections, and an increase in mobile data traffic are the primary factors driving the market’s growth. The expensive cost of 5G chipsets, on the other hand, is projected to limit industry expansion.
Insights into Frequency Types
The sub-6GHz segment dominated the market in terms of value in 2020, with a share of more than 65.0 percent. This is due to key industry companies’ early releases of 5G chipset components that enable the sub-6GHz band for smartphones, connected automobiles, and laptops. The market for 5G chipsets has been divided into three categories based on frequency type: sub-6GHz, mmWave, and sub-6GHz + mmWave. Because of the continuing introduction of contemporary chipset components that support both the sub-6GHz and mmWave bands in a single module, the sub-6GHz + mmWave category is likely to grow at a significant CAGR throughout the projection period.
The ongoing development of the Industrial Internet of Things (IIoT) as well as the growing popularity of self-driving automobiles has necessitated the need for larger bandwidth and quicker data networks. As a result, demand for chipsets that support the mmWave band is likely to rise during the forecast period. Furthermore, in order to keep up with the rapid adoption of smart home applications, several IoT devices will be installed in the next years, and these IoT devices will require high-speed and high-bandwidth connectivity to function well. Following that, demand for a new chipset supporting the 5G New Radio (NR) mmWave carrier frequency would rise, propelling the mmWave segment forward over the forecast period.
The components in consumer devices, customer premise equipment, and network infrastructure equipment that allow the end-user to build a wireless network based on 5G standards are all included in the 5G chipset market analysis.
The proliferation of internet-connected devices is driving demand for 5G, a brand-new wireless infrastructure. Beyond the existing 4G LTE mobile network, fifth generation wireless (5G) is defined as the next generation of mobile networks. These networks extend broadband wireless services beyond mobile internet to IoT and essential communications segments, enabling a perceived completely linked world. 5G is projected to bring new levels of efficiency and performance, as well as new user experiences and industry connections. It is a type of network or platform for innovation that is intended to improve mobile broadband services while also allowing mobile networks to expand to handle more devices and services. It is intended to make the integration of new industries easier, resulting in increased efficiency and lower costs. 5G chipset market trends give up new prospects and redefine a wide range of industries with connected services, from transportation to entertainment, education to retail, and healthcare to consumer electronics, thanks to the creation of 5G infrastructure.
The 5G chipset market is divided into five categories: IC type, operational frequency, product, vertical industry, and geography. The market is classified into four types of integrated circuits: radio frequency integrated circuits (RFICs), application-specific integrated circuits (ASICs), cellular integrated circuits (Cellular ICs), and millimetre wave integrated circuits (MWICs) (mmWave IC). It is divided into three categories based on operational frequency: sub-6 GHz, between 26 and 39 GHz, and over 39 GHz. It is divided into three categories based on the product: devices, customer premises equipment (CPE), and network infrastructure equipment. The market is divided into automotive & transportation, energy & utilities, healthcare, retail, consumer electronics, industrial automation, and others based on industry vertical. The market is further broken down by region, including North America, Europe, Asia-Pacific, and LAMEA.
Demand for high-speed internet is increasing, as is network coverage.
The 5G chipset market is predicted to grow in response to rising demand for high-speed internet and wide network coverage for a variety of applications, including distant learning, autonomous driving, multiuser gaming, videoconferencing, live streaming, telemedicine, and augmented reality.
The rise of 5G cellular technology is being driven by rising demand for mobile broadband technology, high-speed data transfer, and data and information processing. It’s also likely to improve mobile network performance and close the gap between low to minimal network coverage and data connectivity that exists in today’s network generations (3G/4G). s
Increasing the number of cellular Internet-of-Things connections
Machine-to-machine (M2M) and Internet of Things (IoT) are projected to benefit greatly from 5G’s speed and reliability. Better connectivity for smooth communication and reduced power consumption are two key factors for the rising adoption of new M2M technologies. To ensure successful M2M communication, mobile networks’ current capacity must be able to accommodate billions of nodes that are predicted to rise in the next few years. The network capacity is currently insufficient to handle M2M and human-based communications, as well as their various communication patterns, such as lag time. As a result, a next-generation cellular network for mobile communication is required, with hyper-connectivity and higher bandwidth (e.g., 5G network). M2M communication technology will be widely employed to improve the efficiency of various processes and eliminate human involvement with machines in heavy manufacturing and process industries (e.g., food industries). As a result, the 5G chipset market is projected to be driven by M2M communication.
Mobile data traffic is increasing.
Users can now enjoy faster data rates with low latency thanks to the ongoing development of cellular networks. Consumer desire for video, as well as business and consumer moves to embrace cloud services, have all contributed to the rapid increase in data volume.
The expanding use of services and applications in both consumer electronic devices and business-to-business (B2B) communication systems that are now using/testing data-intensive applications such as AR and VR, as well as 3D and ultra-HD video content, is driving demand for mobile data services.