5G Chipsets Market - By Type (Modem Chipsets, RF Transceivers (RFICS), System-On-Chips (Socs)) By Deployment Type (Telecom Base Station Equipment, Smartphones/Tablets, Connected Vehicles, Connected Devices), By Technology Mode, By Vertical, Forecast 2024 – 2032

5G Chipsets Market Size

5G Chipsets Market size was valued at over USD 33 billion in 2023 and is estimated to register a CAGR of over 17% between 2023 and 2032. The increasing demand for high-speed connectivity is a pivotal driver shaping the telecommunications landscape.
 

As society becomes more digitally connected and data-dependent, there is a burgeoning need for networks that can deliver faster and more reliable communication. This demand is fueled by the proliferation of data-intensive applications, such as high-definition video streaming, online gaming, and virtual reality experiences. Users expect seamless connectivity that can support these applications with minimal latency, driving the urgency for advanced networks like 5G.
 

The demand extends beyond individual consumers to various industries, where efficient and high-speed communication is essential for innovation, productivity, and competitiveness. In the era of the Internet of Things (IoT) and smart technologies, meeting the need for high-speed connectivity becomes foundational for a wide array of applications, from smart cities to autonomous vehicles, underlining the transformative impact of addressing this demand. 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 rollout of widespread 5G infrastructure requires significant investments in new equipment, towers, and technologies. Overcoming these financial challenges and ensuring a seamless transition to 5G networks globally poses a potential pitfall. Infrastructure investment challenges in the context of 5G deployment pose significant hurdles for telecommunications providers and network operators. The transition to 5G requires substantial investments in upgrading existing infrastructure, deploying new equipment, and establishing a robust network architecture capable of supporting advanced functionalities. The financial burden of these investments is a considerable challenge, requiring careful planning and allocation of resources.
 

5G Chipsets Market Trends

The ongoing expansion of 5G network deployments marks a significant milestone in the evolution of wireless communication. Telecommunication companies and network operators worldwide are investing heavily in upgrading their infrastructure to support 5G technology. This expansion is characterized by the deployment of advanced antennas, small cells, and other infrastructure elements to create a dense and efficient 5G network. The goal is to provide widespread coverage, enabling users to experience the benefits of 5G connectivity across diverse geographic areas. This deployment is not limited to urban centers but extends to suburban and rural regions, ensuring a more inclusive adoption of 5G.
 

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 a slew of new use cases for consumers and enterprises.
 

A prominent trend in the 5G chipset market is the integration of AI capabilities. 5G networks, with their high data speeds and low latency, provide an ideal environment for AI applications. Chipsets are being designed to support on-device AI processing, enabling faster and more efficient execution of AI algorithms. This integration is particularly relevant for applications like real-time analytics, autonomous vehicles, and edge computing. Beamforming, a technology that enhances the efficiency of wireless communication by focusing signals directly toward specific devices, is experiencing advancements in the context of 5G chipsets. Improved beamforming techniques contribute to enhanced network performance, increased capacity, and better coverage.
 

5G Chipsets Market Analysis

Based on vertical, the market is segmented into automotive, consumer electronics, energy & utilities, healthcare, industrial, IT & telecommunication, Others. The automotive segment accounted for a business share of over 30% in 2023. The automotive segment is a key driver of growth within the 5G chipset market, experiencing transformative changes as connected vehicles become an integral part of the automotive landscape. The deployment of 5G chipsets in automobiles is revolutionizing the driving experience by enabling advanced connectivity features and paving the way for the realization of autonomous driving.
 

One of the primary growth drivers in the automotive segment is the increasing demand for enhanced in-vehicle connectivity. 5G chipsets enable high-speed and low-latency communication, facilitating real-time data exchange between vehicles and the infrastructure. This connectivity is crucial for applications such as advanced driver assistance systems (ADAS), real-time navigation, and vehicle-to-everything (V2X) communication, improving road safety and overall driving efficiency.
 

Based on deployment type, the 5G chipsets market is segmented into telecom base station equipment, smartphones/tablets, connected vehicles, connected devices, broadband access gateway devices, others. The smartphones/tablets segment is estimated to register a significant growth rate of over 16.5% CAGR during the forecast period of 2024-2032.  Increasing consumer demand for faster and more reliable mobile connectivity is a major factor contributing to the segment progress. 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 ongoing expansion of 5G networks globally, creating a foundation for widespread device adoption. Additionally, the launch of a diverse range of 5G-compatible smartphones and tablets by leading manufacturers stimulates market expansion. The increasing consumer demand for immersive experiences, such as augmented reality and high-definition streaming, further fuels the need for advanced 5G chipsets in these devices.
 

Asia Pacific witnessed significant share in the global 5G Chipsets market in 2023, accounting for a business share of over 22%. 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.
 

5G Chipsets Market Share

Samsung Electronics Co., Ltd. hold a significant market share in 2023 in the market. Elbit Systems Ltd provides a range of night vision solutions, including night vision goggles, scopes, and other electro-optical systems. These devices are designed for use across various sectors, including defense, law enforcement, and commercial applications.

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.

5G Chipsets Market Companies

Major players operating in the 5G Chipsets industry are:

• Broadcom Inc.
• Huawei Technologies Co., Ltd.
• Intel Corporation
• Keysight Technologies, Inc.
• MediaTek Inc.
• Nokia Corporation
• NXP Semiconductors N.V.
• Qualcomm Incorporated
• Samsung Electronics Co., Ltd.
• Skyworks Solutions, Inc.
• Taiwan Semiconductor Manufacturing Company Limited (TSMC)
• Unisoc (Shanghai) Technologies Co., Ltd.
• Viavi Solutions Inc.
• Xilinx, Inc.
• ZTE Corporation

5G Chipsets Industry News

• 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.
   
• 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.
   

The 5G Chipsets market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Type, 2018 - 2032

• Modem Chipsets
• RF Transceivers (RFICs)
• System-on-Chips (SoCs)

Market, By Deployment Mode, 2018 – 2032

• Telecom Base Station Equipment
• Smartphones/Tablets
• Connected Vehicles
• Connected Devices
• Broadband Access Gateway Devices
• Others

Market, By Technology, 2018 – 2032

• 7 nm
• 10 nm
• Others

Market, By Vertical, 2018 – 2032

• Automotive
• Consumer electronics
• Energy & utilities
• Healthcare
• Industrial
• IT & Telecommunication
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA