5G Chipset Market Size, Share & Trends Report

5G Chipset Market Size, Share & Trends Analysis Report By Frequency Type, By Processing Node Type, By Deployment Type, By Vertical (Manufacturing, Healthcare), By Region, And Segment Forecasts, 2020 - 2027

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

Report Overview

The global 5G chipset market size was valued at USD 1.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 63.4% from 2020 to 2027. 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 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. This 5G chipset module allows the users of these devices to access the next-generation networks and enjoy an enhanced experience.

China 5G chipset market size

Several leading telecom operators across the globe, including AT&T, Inc.; Verizon Communications; and China Telecom Corporation Limited; 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 telecom operators in China, namely China Telecom Corporation Limited, China Mobile Limited, and China United Network Communications Group Co., Ltd., to deploy high-speed 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 high-speed 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 market growth over the forecast period.

Meanwhile, Internet of Things (IoT) continues to proliferate throughout the globe as several smart cities, 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 2.5 billion by 2027. 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 new chipset modules over the forecast period.

The continued emphasis on developing new and innovative chipset modules for telecom base stations to reduce the overall size and power consumption is expected to open new opportunities in the market for 5G chipset 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 25.0%.

The exponential spread of COVID-19 worldwide has had an adverse impact on the 5G chipset manufacturing facilities in Asia Pacific, which have been temporarily shut, leading to a significant slowdown in production. The outbreak could result in several supply chain participants shifting their production facilities outside China. For instance, according to the data released by the customs department in China, China’s exports have shown a rapid decline by nearly 17.0% in the first two months of 2020 as compared to the last year. In addition, it has also been analyzed that currently, the overall manufacturing sector in Asia Pacific has been severely impacted due to the outbreak of COVID-19; thereby, the market for 5G chipset is also hampered in the region. For instance, various leading players, including Huawei Technologies Co., Ltd., and Samsung Electronics Co., Ltd have showcased a slowdown in their 5G chipset production and exports in the region foreseeing the decline in the global demand for 5G chipsets. Therefore, a decline in the production of these 5G chipsets coupled with temporary bans on international trades in China, U.S, and South Korea are estimated to hinder the overall market growth over the coming years.

However, data security and information privacy concerns can potentially impede the adoption of the 5G chipset components over the forecast period. Concerns over the security of the data being exchanged over next-generation 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 growth of the market for 5G chipset.

Frequency Type Insights

In terms of value, the sub-6GHz segment dominated the market with a share of 79.6% in 2019. This high share is attributable to the initial offerings of 5G chipset components supporting the sub-6GHz band by key market players for smartphones, connected cars, and laptops. Based on the frequency type, the 5G chipset market has been categorized into sub-6GHz, mmWave, and sub-6GHz + mmWave. The sub-6GHz + mmWave segment is expected to register a noticeable CAGR over the forecast period owing to the continued introduction of the modern chipset components supporting both the sub-6GHz and mmWave bands in a single module.

The continued rollout of Industrial Internet of Things (IIoT) and the growing popularity of autonomous cars have triggered the necessity for higher bandwidth and faster data networks. The chipset demand for 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 new chipset 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

In terms of value, the 7nm segment dominated the market with a share of 69.6% in 2019. This high share is attributable to the initial focus on developing 5G chipset components with a 7nm processing node by key players. 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. Moreover, these market players are currently focused on manufacturing 7 nm and 10 nm processing node of the chipset to support high band frequencies.

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 new chipset 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

In terms of value, the smartphones/tablets segment dominated the market with a share of 56.0% in 2019. This high share is attributable to the growing demand for 5G-enabled smartphones for online gaming, watching Ultra High Definition (UHD) videos, and video calling applications. 5G chipsets have been huge demand across various equipment and devices including telecom base station equipment, smartphones/tablets, connected vehicles, connected devices, broadband access gateway devices, and others. Besides, the continued investments in deploying next-generation telecom network infrastructure have also increased the overall demand for next-generation chipset components. As a result, the telecom base station equipment segment accounted for a share of more than 18.0% in 2019.

"Global

Key market players, such as Qualcomm Incorporated, Intel Corporation, and Huawei Technologies Co. Ltd., are focusing on a single combined 5G chipset module 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 and utility, healthcare, and manufacturing industries is also growing. The connected devices segment is expected to witness significant growth as a result.

Vertical Insights

In terms of value, the IT and telecom segment dominated the market with a share of 34.8% in 2019. This high share is attributable to the significant investments being made by the prominent players on developing 5G chipset modules for telecom base stations, broadband gateway devices, and other communication devices. Further, the demand for next-generation chipset has been witnessed across several verticals such as manufacturing, energy and utilities, media and entertainment, IT and telecom, transportation and logistics, healthcare, and others. The growing demand for high-speed data connectivity for virtual meetings and other corporate applications is expected to drive the growth of the IT and telecom segment over the forecast period.

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

Asia Pacific dominated the market with a share of 46.5% in 2019. This is attributable to the rapid rise in the investments in developing 5G-enabled smartphones and base stations supporting 5G New Radio (NR) frequencies. Further, the regional market for 5G chipset is expected to register a CAGR of 67.1% from 2020 to 2027. Key regional players, such as Samsung Electronics Co., Ltd., and Huawei Technologies Co. Ltd., are particularly investing in developing 5G chipset modules.

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. In U.S., the market is estimated to attain a significantly high share. 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 U.S. In addition, the country 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 U.S.

Key Companies & Market Share Insights

Key players are adopting various strategies, including new product development and strategic collaborations, to strengthen their foothold in the market for 5G chipset. 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 the Snapdragon X55 5G modem. The new modem supports sub-6GHz as well as mmWave bands. Major 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. Some of the prominent players in the 5G chipset market include:

  • Qualcomm Incorporated

  • Intel Corporation

  • Huawei Technologies Co. Ltd.

  • Samsung Electronics Co., Ltd.

  • MediaTek Inc.

  •  Infineon Technologies AG

  • Unisoc Communications, Inc.

  • Xilinx Inc.

  • Qorvo, Inc.

5G Chipset Market Report Scope

Report Attribute

Details

Market Size Value in 2020

USD 1.3 Billion

Revenue Forecast in 2027

USD 40.4 Billion

Growth Rate

CAGR of 63.4% from 2020 to 2027

Base year for estimation

2019

Historical data

 -

Forecast period

2020 - 2027

Quantitative Units

Revenue in USD Million and CAGR from 2020 to 2027

Report coverage

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

Segments Covered

Frequency type, processing node type, deployment type, vertical, region

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

Key companies profiled

Qualcomm Incorporated; Intel Corporation; Huawei Technologies Co. Ltd.; Samsung Electronics Co., Ltd.; MediaTek Inc.; Infineon Technologies AG.; Unisoc Communications, Inc.; Xilinx Inc.; and Qorvo, Inc.

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Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 2027. 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 - 2027)

    • sub-6GHz

    • mmWave

    • sub-6GHz + mmWave

  • Processing Node Type Outlook (Revenue, USD Million, 2019 - 2027)

    • 7 nm

    • 10 nm

    • Others

  • Deployment Type Outlook (Revenue, USD Million, 2019 - 2027)

    • 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 - 2027)

    • Manufacturing

    • Energy & Utilities

    • Media & Entertainment

    • IT & Telecom

    • Transportation & Logistics

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Million, 2019 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Sweden

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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