5G Chipset Market Size, Share & Trends Report

5G Chipset Market Size, Share & Trends Analysis Report By Frequency Type (sub-6GHz, mmWave, sub-6GHz + mmWave), By Processing Node Type, By Deployment Type, By Vertical, By Region, and Segment Forecasts, 2019 - 2025

  • Published Date: Aug, 2019
  • Base Year for Estimate: 2019
  • Report ID: GVR-3-68038-534-2
  • Format: Electronic (PDF)
  • Historical Data: 2020 - 2025
  • Number of Pages: 101

Industry Insights

The global 5G chipset market is estimated to reach USD 1,129.7 million in 2019 and exhibit a CAGR of 69.7% from 2020 to 2025. The growing demand for high-speed data networks with a latency of less than 1ms to ensure seamless connectivity for mission-critical applications, such as machine-to-machine (M2M) communication, is expected to propel the market growth over the forecast period. A 5G chipset component happens to be an essential component for 5G-enabled smartphones, laptops, routers, and telecom base stations. A 5G chipset component allows the users of these devices to access the 5G networks and enjoy an enhanced experience.

Several leading telecom operators across the globe, including AT&T, Inc.; Verizon Communications; and China Telecom Corporation Limited; among others; are investing aggressively in deploying 5G network infrastructure to provide high-speed connectivity to their customers. For instance, in November 2018, Nokia Corporation reached an agreement worth around USD 2.2 billion with three key Chinese telecom operators, namely China Telecom Corporation Limited, China Mobile Limited, and China United Network Communications Group Co., Ltd., to deploy 5G network infrastructure in China. Such investments in building next-generation network infrastructure are expected to encourage the adoption of 5G-enabled devices across the globe, which would subsequently drive the demand for 5G chipset components over the forecast period. The growing need for 5G chipset components for applications, such as Vehicle to Everything (V2X) and drone connectivity, which require ultra-reliable low-latency connectivity, is also expected to boost the market growth over the forecast period.

U.S. 5G chipset Market

Meanwhile, Internet of Things (IoT) continues to proliferate throughout the globe as several smart city, smart infrastructure, and smart grid projects are being undertaken in different parts of the world. According to GVR research analysis, global IoT connections are anticipated to exceed 2 billion by 2025. Several manufacturing companies have started deploying IoT devices to monitor machine performance in real time to reduce the overall downtime and enhance operational efficiency. The subsequent increase in demand for IoT devices is expected to drive the demand for 5G chipset components over the forecast period.The continued emphasis on developing new and innovative 5G chipset components for telecom base stations to reduce the overall size and power consumption is expected to open new opportunities in the market over the forecast period. For instance, in February 2019, Samsung Electronics Co., Ltd. introduced two new 5G chipset components for telecom base stations, namely Radio Frequency Integrated Circuits (RFIC) and Application-specific integrated circuit (ASIC) chipsets. These 5G chipset components are capable of operating within the mmWave band of frequencies. They are designed to reduce the base station power consumption, size, and weight by 25%.

However, data security and information privacy concerns can potentially impede the growth of the market for 5G chipset components over the forecast period. Concerns over the security of the data being exchanged over 5G networks are rising all over the world. Several governments have responded to these concerns by drafting favorable policies and stringent regulations to ensure data security and information privacy. The growing trade conflicts between the U.S. and China are also expected to restrain the market growth.

Frequency Type Insights

Based on frequency type, the market has been further segmented into sub-6GHz, mmWave, and sub-6GHz + mmWave. The sub-6GHz segment is expected to account for a market share of more than 70% by 2019. The dominant market share can be attributed to the initial offerings of 5G chipset components supporting the sub-6GHz band by key market players for smartphones, connected cars, and laptops. However, the sub-6GHz + mmWave segment is expected to register a noticeable CAGR over the forecast period owing to the continued introduction of 5G chipset components supporting the sub-6GHz and mmWave bands.

The continued rollout of Industrial Internet of Things (IIoT) and the growing popularity of autonomous cars has triggered the necessity for higher bandwidth and faster data networks. The demand for 5G chipset components supporting the mmWave band is expected to grow over the forecast period as a result. Moreover, several IoT devices would be installed over the next few years in line with the growing adoption of smart home applications and these IoT devices would require high-speed and high-bandwidth connectivity to operate seamlessly. The demand for 5G chipset components supporting the 5G New Radio (NR) mmWave carrier frequency would increase subsequently, thereby driving the growth of the mmWave segment over the forecast period.

Processing Node Type Insights

Based on processing node type, the market has been further segmented into 7 nm, 10 nm, and others. The 7nm segment is expected to account for the largest market share by 2019. This can be attributed to the initial focus on developing 5G chipset components with 7nm processing node. Prominent market players, including MediaTek Inc.; Huawei Technologies Co. Ltd.; Intel Corporation, and Qualcomm Incorporated; are initially focusing on developing 5G chipset components with 7nm processing node.

However, modern communication networks are expected to encounter heavier loads as they would have to cater to multiple applications simultaneously. This would necessitate the development of 5G chipset components with higher processing speeds. Hence, the 10nm segment is expected to register a significant CAGR over the forecast period. Furthermore, as autonomous cars become more common, the need to maintain seamless connectivity between vehicles would also grow and higher processing nodes would have to be adopted to develop 5G chipset components.

Deployment Type Insights

Based on deployment type, the market has been further segmented into telecom base station equipment, smartphones/tablets, connected vehicles, connected devices, broadband access gateway devices, and others. The smartphones/tablets segment is estimated to reach USD 627.07 million by 2019. The growing demand for 5G-enabled smartphones for online gaming, watching ultra-high-definition (UHD) videos, and video calling shows no signs of abating, thereby driving the demand for 5G chipset components. Besides, the continued investments in deploying 5G telecom network infrastructure have also increased the overall demand for 5G chipset components. As a result, the telecom base station equipment segment is estimated to account for a market share of more than 15% by 2019.

Key market players, such as Qualcomm Incorporated, Intel Corporation, and Huawei Technologies Co. Ltd., are focusing on a single combined 5G chipset component capable of supporting standalone carrier frequency as well as non-standalone carrier frequency. The growing need to support multi-carrier frequencies is anticipated to drive the growth of the multi-mode segment over the forecast period. At the same time, the need to ensure ultra-reliable connectivity for the increasing number of connected devices being deployed continuously across the energy & utility, healthcare, and manufacturing industries is also growing. The connected devices segment is expected to witness significant growth as a result.

Vertical Insights

Based on vertical, the 5G chipset market has been further segmented into manufacturing, energy & utilities, media & entertainment, IT & telecom, transportation & logistics, healthcare, and others. The IT & telecom segment is estimated account for the largest market share of over 25% by 2019. The dominant market share can be attributed to the significant investments being made by the prominent players on developing 5G chipset components for telecom base stations, broadband gateway devices, and other communication devices. The growing demand for high-speed data connectivity for virtual meetings and other corporate applications is expected to drive the growth of the segment over the forecast period.

Global 5G chipset Market

Incumbents of the manufacturing industry have realized that digitization would be necessary to enhance the overall productivity. They are thereby automating their production lines by deploying various digitalization solutions. At the same time, the need to establish seamless wireless communication between various robots, sensors, and actuators, which form an integral part of the manufacturing process, is also growing. As a consequence, the manufacturing segment is expected to exhibit the highest CAGR over the forecast period.

Regional Insights

The Asia Pacific regional market is estimated to account for a market share of more than 40% by 2019. Moreover, the regional market is expected to register a CAGR of 74.4% from 2020 to 2025. The growth can be attributed to the rapid rise in the investments in developing 5G-enabled smartphones and base stations supporting 5G new radio (NR) frequencies. Key regional players, such as Samsung Electronics Co., Ltd., and Huawei Technologies Co. Ltd., are particularly investing in developing 5G chipset components.

The growing preference for smart manufacturing across emerging economies, such as China and India, are anticipated to drive the adoption of 5G chipset components over the forecast period. The U.S. regional market is estimated to attain a significantly high market share in the global market. The U.S. is witnessing robust investments in building smart homes, deploying smart industries, and rolling out smart cities. At the same time, the preference for high-graphics online gaming is growing among the consumers in the U.S. The U.S. is also emerging as an early adopter of self-driving cars and smart transportation infrastructure. All these developments are expected to drive the demand for 5G chipset components in the U.S.

5G Chipset Market Share Insights

Key players in the market include Qualcomm Incorporated; Intel Corporation; Huawei Technologies Co. Ltd.; Samsung Electronics Co., Ltd.; MediaTek Inc.; and Infineon Technologies AG. Other market players, such as Unisoc Communications, Inc.; Xilinx Inc.; and Qorvo, Inc.; are also active in the market. All these market players are adopting various strategies, including new product development and strategic collaborations, to strengthen their foothold in the market. At the same time, key smartphone manufacturers, such as Apple Inc., are focusing on vertical integration in order to enhance their product portfolios with 5G-enabled devices.

The market incumbents are focusing aggressively on developing new and innovative products, enhancing the overall product portfolios, and gaining a significant market share. For instance, in February 2019, Qualcomm Incorporated introduced Snapdragon X55 5G modem. The new modem supports sub-6GHz as well as mmWave bands. Market players are also investing in research and development in developing new multi-mode 5G chipset components. For instance, Intel corporation infused USD 28.7 billion in R&D in 2018 toward the development of new and innovative technologies. The company also expected these investments to help in strengthening its competitive position in the market.

Report Scope

 Attribute

Details

Base year for estimation

2019

Forecast period

2020 - 2025

Representation

Revenue in USD Million and CAGR from 2020 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S., Canada, U.K., Germany, Sweden, China, Japan, India, South Korea, Brazil, Mexico

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report

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 sub-segments from 2019 to 2025. For the purpose of this study, Grand View Research has segmented the global 5G chipset market report based on frequency type, processing node type, deployment type, vertical, and region:

  • Frequency Type Outlook (Revenue, USD Million, 2019 - 2025)

    • sub-6GHz

    • mmWave

    • sub-6GHz + mmWave

  • Processing Node Type Outlook (Revenue, USD Million, 2019 - 2025)

    • 7 nm

    • 10 nm

    • Others

  • Deployment Type Outlook (Revenue, USD Million, 2019 - 2025)

    • Telecom Base Station Equipment

    • Smartphones/Tablets

      •  Single-Mode

        • Non-Standalone

        •  Standalone

      • Multi-Mode

    • Connected Vehicles

      •  Single-Mode

        • Non-Standalone

        •  Standalone

      • Multi-Mode

    • Connected Devices

      •  Single-Mode

        • Non-Standalone

        •  Standalone

      • Multi-Mode

    • Broadband Access Gateway Devices

      •  Single-Mode

        • Non-Standalone

        •  Standalone

      • Multi-Mode

    • Others

      •  Single-Mode

        • Non-Standalone

        •  Standalone

      • Multi-Mode

  • Vertical Outlook (Revenue, USD Million, 2019 - 2025)

    • Manufacturing

    • Energy & Utilities

    • Media & Entertainment

    • IT & Telecom

    • Transportation & Logistics

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Million, 2019 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Sweden

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • MEA (Middle East & Africa)

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