PUBLISHER: IMARC | PRODUCT CODE: 2024455
PUBLISHER: IMARC | PRODUCT CODE: 2024455
The global 5G chipset market size reached USD 10.3 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 100.2 Billion by 2034, exhibiting a growth rate (CAGR) of 27.87% during 2026-2034. The market is experiencing steady growth driven by the escalating demand for high-speed internet and advanced data services across various sectors, the widespread adoption of IoT devices, and substantial investments and supportive government policies for 5G network deployment. Asia Pacific accounts for the largest 5G chipset market share in the world.
Increasing Demand for High-Speed Internet and Data Services
The global market is significantly driven by the escalating demand for high-speed internet and advanced data services. Furthermore, the proliferation of IoT devices, smart cities, and industrial automation is also augmenting the need for 5G chipsets. Several smart city projects and initiatives are underway around the world, and it is expected that by 2025, there will be around 30 global smart cities, with half of these located in North America and Europe. These steps are supported by global investments, which, according to the OECD, are expected to total USD 1.8 Trillion in urban infrastructure projects between 2010 and 2030. This, in turn, is driving the demand for 5G chipsets for smart city connectivity applications. Moreover, the rapid expansion of mobile networks and increasing smartphone penetration are also bolstering the 5G chipset market value. The global number of smartphone users was forecast to continuously increase between 2024 and 2029 by, in total, 1.5 billion users (+30.6 %). After the fifteenth consecutive increasing year, the smartphone user base is estimated to reach 6.4 billion users and, therefore, a new peak in 2029. Furthermore, the growing appetite for streaming services, online gaming, and real-time data access necessitates robust and fast connectivity solutions, which is anticipated to propel the 5G chipset market demand.
Technological Advancements in Semiconductor and Telecommunication Industries
Ongoing technological advancements in the semiconductor and telecommunication sectors are also propelling the growth of the market. Continuous innovation in chipset design, including the development of smaller, more efficient, and cost-effective components, is positively impacting the 5G chipset market outlook. Additionally, various telecom operators are acquiring spectrums to increase their 5G connection coverage. For instance, in August 2022, in India's first 5G spectrum auction, Airtel paid INR 43,084 crore for 19,800 MHz spectrum. In the past 20 years, spectrum bands 900 MHz, 2100 MHz, 1800 MHz, 3300 MHz, and 26 GHz have been acquired through auctions. It obtained a pan-India footprint in the 3.5 GHz and 26 GHz bands. According to the company, this is the ideal spectrum bank for the best 5G experience, with 100x capacity enhancement done strategically at the lowest cost. Moreover, various key market players are also collaborating with each other to improve 5G infrastructure. For example, ABB and Ericsson collaborated to realize Thailand's Industry 4.0 ambition and facilitate future flexible production with automation systems and wireless communications. The focus areas include ABB's Robotics & Discrete Automation, Industrial Automation, and Motion business areas and ABB Ability TM Platform Services. The collaboration covers 5G-enabled Augmented Reality Lenses for remote commissioning in manufacturing environments in addition to global NB-IoT connected motors and drives through Ericsson Communication Service Provider partners and its IoT-Accelerator platform. Furthermore, advances in semiconductor technology, such as the transition to smaller nanometre process nodes, are enhancing their performance and energy efficiency, which is anticipated to propel the 5G chipset market growth.
Government Initiatives and Investment in 5G Infrastructure
Government policies and investments are playing a pivotal role in driving the 5G chipset market price. Numerous countries are actively promoting the deployment of 5G networks as part of their digital transformation agendas, providing financial and regulatory support to accelerate this process. For instance, according to IBEF data, the Government of India has set an ambitious target of increasing manufacturing output contribution to GDP to 25% by 2025, up from 16%. The Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 initiative aims to raise awareness of Industry 4.0 in the Indian manufacturing industry and assist stakeholders in addressing smart manufacturing challenges. Furthermore, governments are facilitating the allocation of 5G spectrum bands, crucial for the efficient operation of 5G networks and, by extension, the performance of 5G chipsets. This is anticipated to positively impact the future of 5G chipset market in the coming years.
Application-specific integrated circuits (ASIC) dominate the market
The ASIC segment holds the largest share of the market. These chips are custom-designed for specific applications, making them highly efficient for dedicated tasks. In the context of 5G, ASICs are predominantly used in network infrastructure and high-performance computing applications where efficiency and speed are critical. Their ability to provide tailored solutions for complex processes, such as signal processing and data handling in 5G networks, makes them a preferred choice. Despite their higher upfront development cost, their optimized performance and lower operational costs in the long term contribute significantly to their market dominance.
Sub 6 GHz holds the largest share in the market
The sub 6 GHz segment is currently the largest in the global market. This frequency range is crucial for providing widespread coverage and better penetration through obstacles, making it ideal for urban and suburban areas. Chipsets operating in this spectrum are fundamental to ensuring broad 5G network accessibility, especially in regions where dense building construction can impede higher frequency signals. These chipsets support a balance between coverage and data rate, making them suitable for a wide array of consumer devices and industrial applications.
Consumer electronics hold the largest share of the market
The consumer electronics segment holds the largest share of the market, driven by the rapid adoption of 5G technology in smartphones, tablets, wearables, and smart home devices. According to the Cisco Annual Internet Report, the average smartphone connection speed in the United States was 81.1 Mbps as of 2023, up from 19.2 Mbps in 2018, a 4.2-fold growth (33% CAGR). Alongside 5G rollouts, operators are also pursuing ambitious network transformation strategies. Moreover, numerous consumer electronic operators are increasingly collaborating with 5G providers, which is creating a positive outlook for the overall market. For instance, 18 global telecom and consumer device makers partnered with US-based Qualcomm for their 5G chipset. Such innovations and advancements will continue to cater to the growth of this segment.
Asia Pacific leads the market, accounting for the largest 5G chipset market share.
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.
Asia Pacific (APAC) is the largest segment in the market, primarily driven by rapid technological advancements and strong government support in countries such as China, South Korea, and Japan. This region has been at the forefront of 5G deployment, with extensive network rollouts and a high adoption rate of 5G-enabled devices. Further, South Korea also boasts one of the highest 5G performances in APAC, exceeded only by Malaysia. The two countries are home to the leading cities in terms of 5G performance, with Seoul having the fastest download speed and Kuala Lumpur the fastest upload speed among major cities in the region. South Korea was the first country worldwide to launch 5G services in April 2019.
The market research report has provided a comprehensive analysis of the competitive landscape and 5G chipset market overview. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
Frequently Asked Questions About the 5G Chipset Market Report
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3.What are the key 5G chipset market drivers, propelling the market growth?
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