The global 5G chipsets market size was valued at USD 34.3 billion in 2022 and it is expected to hit over USD 177.25 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 17.9% over the forecast period 2023 to 2032. Asia Pacific 5G chipsets market has held a revenue share of around 47.8% in 2022.
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The goal of a 5G chipset is to enable the end user to create a wireless network that adheres to 5G network requirements. It is an improved part of customer premises equipment and network equipment. The proliferation of devices with internet access has increased the need for 5G, a brand-new wireless infrastructure. After the current 4G LTE mobile network, 5th wireless (5G) is the following generation of smart mobile networks. These networks provide a perceived total global connectivity by extending broadband wireless operating frequency (Operational Frequency) beyond mobile broadband to the Internet of Things (IoT) and important communications segments. The lowest 5G chipset solution for the upcoming generation is also anticipated to bring new levels of efficiency and performance, allowing novel user experiences and the connecting of brand-new industries. In addition, the expansion of the 5G chipset business is fueled by the increased demand for 5G network infrastructure solutions, which makes it possible to link new sectors and maximize efficiency while minimizing cost.
Due to the widespread use of M2M and IoT connectivity, the 5G chipset market is anticipated to expand significantly over the course of the forecast period. The industry is expanding as a result of the rising demand for high-speed internet and extensive network coverage. Additionally, throughout the anticipated period, a rise in demand for mobile broadband operating frequency is anticipated to fuel the expansion of the 5G chipset market.
However, high investment costs, difficulties implementing the 5G network in terms of technology and infrastructure, and privacy and security concerns are some of the key reasons limiting industry development. On the other hand, increased government efforts in Asia-Pacific to develop smart cities are anticipated to create attractive chances for the market for 5G chipsets to expand over the projected period.
Along with rising need for high-speed internet and extensive network coverage, increasing demand for optical scanning solutions is a significant element influencing the development of the worldwide 5G chipset market. Additionally, the growth opportunity in the 5G chipset market is anticipated to be driven by the development of M2M/IoT connectivity. The market's expansion is, however, constrained by high investment costs, infrastructural and technological issues associated with the deployment of the 5G network, as well as privacy and security concerns. On the other hand, the spike in Asian-Pacific government initiatives to develop smart cities is anticipated to be a significant development opportunity for the 5G chipset market over the projected period.
Report Scope of the 5g Chipset Market
|Market Size in 2023||
USD 40.27 Billion
|Market Size by 2032||
USD 177.25 Billion
|Growth Rate from 2023 to 2032||CAGR of 17.9%|
|Forecast Period||2023 to 2032|
|Segments Covered||Type, Frequency Type, Processing Node Type, Deployment Type, End Use, and Geography|
|Companies Mentioned||Qualcomm, Inc., Intel Corporation, Samsung Electronics Co., Ltd., Qorvo, Inc., Huawei Investment & Holding Co., Ltd., Xilinx, Inc., Analog Devices, Inc., NXP Semiconductors N.V., Marvell Technology Group, Broadcom Inc., Murata Manufacturing Co., Ltd., Renesas Electronics Corporation, Infineon Technologies AG, Anokiwave, MACOM Technology Solutions Holdings Inc.|
Key Market Drivers
Key market challenges
Key market opportunities
Frequency Type Insights
The sub-6GHz sector led the industry in terms of value in 2022. This is a result of major market participants initially releasing 5G chipset components that enable the sub-6GHz spectrum for laptops, linked automobiles, and smartphones.
Due to the ongoing release of cutting-edge chipset components that support both the sub-6GHz and mmWave frequencies in a single module, the sub-6GHz + mmWave category is anticipated to see a discernible CAGR throughout the projection period.
Processing Node Type Insights
In 2022, the 7 nm category dominated the market in terms of value. This is a result of major players first concentrating on building 5G chipset components using a 7nm processor node. MediaTek Inc., Huawei Technologies Co. Ltd., Intel, and Qualcomm Incorporated, among other well-known industry participants, are concentrating first on building 5G chipset components using a 7nm processing node. Additionally, in order to enable high band frequencies, these market participants are presently concentrating on producing 7 nm and 10 nm processor nodes of the chipset.
However, given that they will need to support several applications at once, modern communication networks are anticipated to experience increased demands. The creation of a new chipset with faster processing rates would be required as a result. As a result, the 10 nm category is anticipated to post a sizable CAGR throughout the projection period. Additionally, if autonomous vehicles become more prevalent, a bigger number of processing nodes would need to be implemented in order to create 5G chipsets in order to ensure smooth connection between vehicles.
In value terms in 2022, the smartphones/tablets sector led the market. This can be attributable to the rising demand for smartphones with 5G capabilities for applications such as video chatting, online gaming, and watching Ultra High Definition (UHD) videos. The demand for 5G chipsets has been rising across a range of devices and equipment, including broadband access gateway equipment, smartphones and tablets, connected cars, and linked gadgets. Additionally, the demand for components for next-generation chipsets has expanded as a result of ongoing expenditures in the deployment of next-generation telecom network infrastructure.
In 2022, Asia Pacific held the majority of the market, with a share of around 47.8%. This is due to the quick increase in expenditures made in base stations that support 5G New Radio (NR) frequencies and handsets that support 5G technology. Important regional businesses including Huawei Technologies Co. Ltd. and Samsung Electronics Co., Ltd. are spending heavily in the creation of 5G chipset modules.
A rising need for smart manufacturing in developing nations like China and India is anticipated to increase the use of 5G chipset components throughout the forecasted period. The market in the United States is expected to expand dramatically during the next years. Significant investment is being attracted to the creation of smart cities, smart industries, and home automation in the US. Online gaming with advanced visuals is becoming more and more popular with American players. The country is also becoming a pioneer in the usage of autonomous vehicles and smart transportation infrastructure. All of these developments are expected to boost demand for 5G chipset components in the US.
5g Chipset Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
Key market players
By Frequency Type
By Processing Node Type
By Deployment Type
By End Use
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