The global 5G chipset market is forecast to reach $143,69-billion by 2030, – at a CAGR of 20,7% from 2024 to 2030 – according to a new report by Grand View Research.
With the increasing demand for 5G-enabled devices, there is a growing need for more powerful and efficient 5G chipsets that can support these devices. To improve performance and efficiency, many chipsets are being designed with built-in artificial intelligence (AI) capabilities which allow devices to process data more quickly and accurately, and make more intelligent decisions.
Additionally, there is an increasing focus on the development of specialised 5G chipsets for specific use cases such as IoT devices, automotive applications, and virtual and augmented reality applications which bodes well for the market growth.
The rising demand for high-speed Internet is a major driving force behind the growth of the market. With the increasing popularity of bandwidth-intensive applications such as high-quality video streaming, virtual and augmented reality, and cloud gaming there is a need for faster and more reliable Internet connectivity.
The 5G network is designed to provide significantly faster download and upload speeds, lower latency, and greater capacity than previous generations of wireless networks. As a result, there is a growing need for 5G chipsets that can enable high-speed Internet connectivity for a wide range of devices including smartphones, laptops, and IoT devices.
With the rollout of 5G networks in many parts of the world, consumers are increasingly looking for devices that can take advantage of the new technology. 5G smartphones offer faster download and upload speeds, lower latency, and greater capacity than previous generations of smartphones allowing users to enjoy faster and more reliable Internet connectivity.
As a result, there is a growing need for 5G chipsets that can power these devices – enabling them to provide the high-speed connectivity that users demand.
Additional highlights from the report include:
* Based on type, the RFICs segment dominated the market in 2023. The rising complexity of smartphones, which necessitates the use of additional RF transceiver ICs to support numerous antennas for features such as 4G/5G connection, WiFi, Bluetooth, GPS, and NFC is a major factor driving the segment growth.
* Based on operating frequency, the Sub-6 GHz segment dominated the market in 2023. Increasing use of Sub-6 GHz technologies to provide comprehensive coverage in urban and rural regions – since these frequency bands offer more range and penetration than higher mmWave bands – is a primary factor driving the segment growth.
* Based on processing node type, the 7nm segment dominated the market in 2023. The increasing use of the 7nm technology node in chip design which offers lower power consumption, greater switching performance, and higher density is a primary factor driving the segment growth.
* Based on deployment type, the smartphones segment dominated the market in 2023. The segment’s growth is mostly attributed to the rising customer demand for mobile connection that is both quicker and more dependable.
* Based on vertical, the IT & telecommunication segment dominated the market in 2023. Significant factors influencing the segment growth include major manufacturers’ extensive efforts in developing 5G chipset modules for telecom base stations and other communication equipment.
* The Asia Pacific region dominated the market in 2023 owing to the rising demand for high-speed connection by consumers and the growing usage of modern technologies such as IoT, AI, and cloud computing.