5G Chipset Market Size, Share & Trends Analysis Report By Type, By Operating Frequency, By Processing Node Type, By Deployment Type, By Vertical, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global 5G chipset market size was valued at USD 33.46 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 20.3% from 2023 to 2030. The increasing demand for high-speed internet connectivity and the growing adoption of Machine to machine (M2M) connections are the major factors contributing to the market growth. With the rollout of 5G networks, there is a growing need for advanced 5G chipsets that can provide faster speeds and lower latency. This has led to a surge in demand for 5G chipsets in smartphones, tablets, and other connected devices. Additionally, the rise in the use of connected cars, smart homes, and other IoT devices has further fueled the demand for 5G chipsets, thereby contributing to the growth of the market.

Several 5G chipsets solution providers are launching 5G chipsets for budget and mid-segment smartphones and address the growing demand for high-speed internet connectivity from end users. For instance, in September 2022, Qualcomm Technologies, Inc., a semiconductor company, launched Snapdragon 4 Gen 1 and Snapdragon 6 Gen 1 delivering 5G capabilities to mid-tier and low-cost devices. Snapdragon 6 and Snapdragon 4 are series enhancements that offer breakthroughs in capture, communication, entertainment, and AI. The Snapdragon 6 Gen 1 comes with Qualcomm's newest AI Engine, which can perform up to three times as well as its predecessor in terms of intelligent assistance and activity-based tracking.

The driving trends of machine-to-machine (M2M) connections are playing a significant role in driving the growth of the market. M2M connections refer to the direct communication between devices or machines without the need for human intervention. With the rise of the Internet of Things (IoT) and connected devices, M2M connections have become increasingly important in facilitating the transfer of data between devices, enabling automation and improving operational efficiency. The adoption of 5G networks is expected to further accelerate the growth of M2M connections as it offers higher bandwidth, lower latency, and greater reliability than previous generations of mobile networks. This has led to a growing demand for advanced 5G chipsets that can support the high-speed transfer of data between devices, which is crucial for enabling M2M connections.

Increasing demand for high-speed mobile internet services is expected to create more demand for the 5G chipsets industry over the coming years.The demand for high-speed mobile internet services is primarily driven by the ease of accessibility and a substantial informational content over the internet.It is anticipated that the commercialization of 5G-enabled devices will open up opportunities ranging from straightforward ones like Virtual Reality (VR) and Augmented Reality (AR) gaming and Ultra-High-Definition (UHD) video streaming to more intricate ones like robotic procedures, autonomous vehicles, and autonomous defense equipment. It is predicted that the need for high-speed, low latency data communication would increase as a result of the introduction of these next-generation applications.

The integration of terrestrial and satellite network infrastructure with 5G services is projected to greatly contribute to the broad deployment of 5G services. The combination of 5G with a satellite communication system would improve communication and data transfer efficiency in industrial applications such as high-speed railroads, aircraft, ships, and distant places where cellular networks are poor. This is also intended to make mission-critical systems in defense and military applications easier to implement. However, the high initial investments involved in the development of 5G network infrastructure may hinder the growth of the market over the forecast period.

Covid 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, which 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 later, which has led to an increased demand for 5G-enabled devices such as smartphones, laptops, and IoT devices, driving the demand for 5G chipsets.

Type Insights

The RFICs segment dominated the market in 2022 and accounted for more than 44.0% share of the global revenue. The rising demand of RF transceivers ICs in smartphone is a major factor contributing to the segment growth. Additionally, the growth in mobile data traffic, is driving the need for higher bandwidth and faster data rates which requires more advanced RF transceiver ICs capable of supporting a wider range of frequency bands and modulation schemes. At the same time, the increasing complexity of smartphones, which require more RF transceiver ICs to support multiple antennas for functions such as 4G/5G connectivity, Wi-Fi, Bluetooth, GPS, and NFC is a significant factor contributing to the segment growth.

The modems segment is projected to witness remarkable growth over the forecast period. The integration of 5G modems into system-on-chip (SoC) designs is a major factor contributing to the segment growth. This integration not only reduces power consumption and increases performance but also simplifies the design process for device manufacturers. Moreover, the move towards more advanced modem designs that can support faster data rates and lower latency is also being driven by the demand for high-quality video streaming and low-latency applications such as gaming and virtual reality.

Operating Frequency Insights

The Sub-6 GHz segment dominated the market in 2022 and accounted for more than 54.0% share of the global revenue. Rising adoption of Sub-6 GHz technologies to provide widespread coverage in urban and rural areas, as these frequency bands offer greater range and penetration than the higher mmWave bands is a major factor contributing to the segment growth.5G chipsets for Sub-6 GHz frequencies are designed to support the lower frequency bands used for 5G communications. These chipsets typically include a range of advanced features and technologies to optimize network performance and improve user experience. One key feature of 5G chipsets for Sub-6 GHz is support for Massive MIMO antenna systems, which enable the use of multiple antennas to improve network capacity and performance.

The 24-39 Ghz segment is projected to witness significant growth over the forecast period. The rising adoption of Millimeter-Wave (mmWave) technology, which utilizes frequencies in the range of 24-39 GHz band to provide ultra-high-speed 5G connections, is a major factor contributing to the segment growth. This technology enables data rates of several gigabits per second, which is critical for applications such as high-definition video streaming, augmented reality, and virtual reality. At the same time, the growing interest in integrating 5G modems and mmWave RF components into a single chip, which can help to reduce power consumption and simplify the design process for device manufacturers, is also a significant factor contributing to the segment growth.

Processing Node Type Insights

The 7 nm segment dominated the market in 2022 and accounted for more than 54.0% share of the global revenue. The rising adoption of 7 nm technology node in chip design, as it offers reduced power consumption, improved switching performance, and higher density, is a major factor contributing to the segment growth. Manufacturers across the globe early focus on producing 5G chipset components using a 7nm processor node. Major industry participants such as MediaTek Inc., Huawei Technologies Co. Ltd., Intel Corporation, and Qualcomm Incorporated are initially concentrating on creating 5G chipset components using a 7nm processing node. Moreover, the 7nm process also offers improved performance over larger process nodes, which is important for meeting the demanding requirements of 5G networks, such as high data rates, low latency, and reliable connectivity.

The 10 nm segment is projected to expand at the highest CAGR over the forecast owing to the ability of 10nm process to integrate more transistors onto a single chip, which allows for the development of more powerful and energy-efficient 5G chipsets. This is important for supporting advanced features such as Massive MIMO and beamforming, which require multiple transistors to be integrated onto the chip. The 10nm process also enables the development of smaller and more compact chipsets, which is important for reducing device size and weight. Additionally, the 10nm process offers improved power efficiency over larger process nodes, which is critical for mobile devices that rely on battery power. This allows for longer battery life and improved device performance.

Deployment Type Insights

The smartphones segment dominated the market in 2022 and accounted for more than 50.0% share of the global revenue. Increasing consumer demand for faster and more reliable mobile connectivity is a major factor contributing to the segment growth. With the rise of mobile video streaming, online gaming, and other data-intensive applications, consumers are looking for smartphones that can deliver faster data speeds and lower latency. This has led to the development of 5G chipsets that are optimized for use in smartphones, offering advanced features such as support for multiple bands, higher data rates, and improved power efficiency.

The connected devices segment is expected to grow significantly over the forecast period. The growing demand for high-speed and reliable connectivity in various IoT applications is a significant factor contributing to the segment growth. Connected devices, such as smart home appliances, security systems, and industrial equipment, require low-latency, high-speed connections to function optimally. The deployment of 5G chipsets in these devices enables faster and more reliable data transfer, which can lead to more efficient and effective use of the devices.5G networks can support significantly more connected devices than previous generations of wireless networks, which makes them well-suited for IoT applications that involve a large number of devices.

Vertical Insights

The IT & Telecommunication segment dominated the market in 2022 and accounted for more than 36.0% share of the global revenue. Major manufacturers considerable efforts in creating 5G chipset modules for telecom base stations, broadband gateway devices, and other communication equipment is significant factor contributing to the segment growth. With the increasing usage of data-intensive applications, such as video streaming and cloud services, there is a growing need for faster and more reliable networks. The use of 5G chipsets in IT and Telecom infrastructure can help meet this demand by enabling faster and more efficient data transfer, which can enhance the overall performance of the infrastructure.

The manufacturing segment is expected to grow significantly over the forecast period Manufacturing industry leaders have recognized that digitalization is required to boost overall productivity. They are thereby automating their manufacturing processes through the use of different digitalization technologies. Using 5G chipsets in manufacturing can enable faster and more efficient machine-to-machine communication, which can lead to more efficient and effective use of the infrastructure. This trend also drives the development of new use cases and applications in the manufacturing sector, such as smart factories and industrial IoT applications that require real-time data transfer and analytics. Additionally, the use of 5G chipsets in manufacturing is driving the development of new automation and robotics solutions, which can increase productivity and efficiency on the factory floor.

Regional Insights

The Asia Pacific region dominated the market in 2022 and accounted for more than 40.0% share of the global revenue. This is attributable to the rapid rise for high-speed connectivity and the increasing adoption of advanced technologies such as IoT, AI, and cloud computing. The use of 5G chipsets can help meet this demand by enabling faster and more reliable connectivity, which can support a wide range of applications and services. This trend is driving the development of new use cases and applications in areas such as smart cities, healthcare, education, and transportation. Additionally, the Asia Pacific region is home to several leading manufacturers of 5G chipsets, which is driving innovation and competition in the regional market.

The North America region is expected to grow significantly over the forecast period. The deployment of 5G networks in North America is enabling the growth of emerging technologies such as autonomous vehicles, augmented reality, and virtual reality, which rely on low latency and high bandwidth. U.S. is seeing significant investment in smart homes, smart industries, and smart cities. At the same time, customers in the U.S. are becoming more interested in high-graphics online gaming. Moreover, the country is also developing as an early adopter of self-driving automobiles and intelligent transportation infrastructure. All of these advancements are projected to stimulate demand for 5G chipset components in the North America region.

Key Companies & Market Share Insights

Some of the key players in the market include Huawei Technologies, Inc, MediaTek Inc, Intel Corporation, Samsung, Infineon Technologies AG., Qualcomm Technologies, Inc., Unisoc Communications Inc., Qorvo, Inc., Anokiwave, Inc, and Xilinx. The market can be described is characterized by the presence of many prominent players, which are driving market competition by implementing several strategies focused on long-term market position sustainability, making it difficult for new players to enter the marketspace. Geographical expansions, product developments, and a strong emphasis on are examples of these tactics.

Market incumbents are concentrating their efforts on generating new and creative products, expanding their product ranges, and acquiring a considerable market share. For instance, in May 2022, MediaTek Inc, a semiconductor company, unveiled its first mmWave 5G chipset, the Dimensity 1050 System-on-Chip (SoC), which would power the next generation of 5G devices with seamless connection, displays, gaming, and power efficiency. MediaTek Inc also revealed two new chipsets, the Dimensity 930 and the Helio G99, to broaden its 5G and gaming chip families. Moreover, companies across the globe are also developing 6^th generation modems to provide better 5G connectivity services.

For instance, in February 2023, Qualcomm Technologies, Inc, a semiconductor technology company, launched Snapdragon X75, its new 6th generation 5G radio frequency modem. The Snapdragon X75 5G modem's primary new feature is compatibility with 5G-Advanced (5G-A), a network protocol that will provide an advancement over standard 5G connection. 5G-A will provide higher bandwidth and lower latencies, opening up a slew of new use cases for consumers and enterprises. Some of the prominent players in the global 5G chipset market include:

• Huawei Technologies, Inc

• MediaTek Inc

• Intel Corporation

• Samsung

• Infineon Technologies AG

• Qualcomm Technologies, Inc

• Unisoc Communications Inc.

• Qorvo, Inc.

• Anokiwave, Inc

• Xilinx

5G Chipset Market Report Scope

Global 5G Chipset Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the subsegments from 2019 to 2030. For this study, Grand View Research has segmented the global 5G chipset market report based on type, operating frequency, processing node type, deployment type, vertical, and region:

• Type Outlook (Revenue, USD Million, 2019 - 2030)

  • Modems

  • RFICs

    • RF Transceivers

    • RF FE

  • Others

• Operating Frequency Outlook (Revenue, USD Million, 2019 - 2030)

  • Sub-6 GHz

  • 24-39 Ghz

  • Above 39 Ghz

• Processing Node Type Outlook (Revenue, USD Million, 2019 - 2030)

  • 7 nm

  • 10 nm

  • Others

• Deployment Type Outlook (Revenue, USD Million, 2019 - 2030)

  • Telecom Base Station Equipment

  • Smartphones/Tablets

    • Single-mode

      • Standalone

      • Non-standalone

    • Multi-mode

  • Connected Vehicles

    • Single-mode

      • Standalone

      • Non-standalone

    • Multi-mode

  • Connected Devices

    • Single-mode

      • Standalone

      • Non-Standalone

    • Multi-mode

  • Broadband Access Gateway Devices

    • Single-mode

      • Standalone

      • Non-standalone

    • Multi-mode

  • Others

    • Single-mode

      • Standalone

      • Non-standalone

    • Multi-mode

• Vertical Outlook (Revenue, USD Million, 2019 - 2030)

  • Manufacturing

  • Energy & Utilities

  • Media & Entertainment

  • IT & Telecom

  • Transportation & Logistics

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • MEA (Middle East & Africa)

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa