The global 5G Chipset Market size is expected to reach USD 66.45 billion by 2028, according to a new study by Grand View Research, Inc. It is expected to expand at a CAGR of 69.1% from 2021 to 2028. The rapidly rising demand for ultra-reliable and low-latency data networks capable of delivering seamless connectivity is estimated to boost market growth over the forecast period. As such, the 5G chipset is turning out to be an integral part of modern telecommunication equipment. 5G chipsets can be found in the latest smartphones, laptops, base stations, modems, and routers. These chipsets are also being installed in connected vehicles deployed as part of autonomous vehicle systems to provide improved Vehicle-to-Everything (V2X) connectivity.
The growing popularity of 5G-enabled smartphones is emerging as a major factor that is estimated to propel market growth over the forecast period. Key smartphone manufacturers are responding to the growing demand for 5G smartphones by aggressively investing in vertical integration in order to diversify their businesses and augment revenues. For instance, in July 2019, Apple, Inc. acquired Intel Corporation’s smartphone modem business segment for USD 1.0 billion. The acquisition was primarily focused on developing 5G chipset components for Apple Inc.’s new upcoming 5G-enabled iPhone.
5G chipset components are expected to play a crucial role in smart city projects by facilitating seamless connectivity for smart infrastructure, smart grids, smart streetlights, and building energy automation devices. These chipsets are also poised to become an integral part of the manufacturing sector by enabling ultra-low latency and high-reliability connectivity for various critical applications, such as remote process monitoring and control. The growing deployment of these chipsets to provide robust connectivity for Machine to Machine (M2M) communications in the manufacturing sector is anticipated to drive the market over the forecast period.
With the rapidly spreading COVID-19, leading economies such as China, the U.S., and Japan have temporarily shut down their businesses and industrial operations. As a result, this has hampered the global 5G chipset production and sales. Thus, it is estimated to see a slowdown in the overall market growth during the forecast period. Furthermore, in key European countries, governments are facing major difficulties in progressing the 5G commercialization process in order to deliver enhanced data bandwidth to their people. For instance, currently, the France government has postponed the 5G auction process for telecom operators amid the outbreak of COVID-19 in the country. As a result, it is anticipated to impede the adoption of 5G devices in the country, thereby hampering the overall market growth over the forecast period.
Moreover, rising concerns over the security of the data being exchanged over fifth-generation networks are expected to hinder the market growth. Particularly in countries such as the U.S., the U.K., and Germany, governments are highly concerned about data security and privacy issues. Several governments have also drafted stringent regulations and policies to ensure the security of the data being transferred over fifth-generation networks.
Related Press Release@ 5G Chipset Market Report
5G Chipset Market Report Highlights
- The U.S. market held a 93.3% share in 2020. This is attributed to the enormous investments in developing 5G chipsets by key market players such as Qualcomm Incorporated; Intel Corporation; and Qorvo, Inc.
- Asia Pacific is anticipated to register the highest CAGR from 2021 to 2028. The growth is attributed to rapidly increasing demand for 5G-enabled smartphones, along with the increasing massive investments in building 5G network infrastructure by key players, such as Huawei Technologies Co., Ltd.
- By deployment type, in 2020, the smartphones/tablets segment held the largest share of nearly 55.0% due to an initial focus on developing 5G chipsets for smartphone applications, such as accessing UHD video and Augmented reality (AR)/ Virtual Reality (VR) gaming
- Several key market players are significantly focusing on R&D investments to develop new 5G chipsets, such as multi-mode chipsets and single-mode standalone chipsets. This strategy is anticipated to help market players to expand their overall product portfolios and market presence
