PUBLISHER: The Insight Partners | PRODUCT CODE: 1874052
PUBLISHER: The Insight Partners | PRODUCT CODE: 1874052
The market for 5G chipsets is projected to expand from US$ 39.22 Billion in 2024 to US$ 154.19 Billion by 2031, reflecting a compound annual growth rate (CAGR) of 16.45% during this period. Key trends influencing the 5G chipset market include enhanced functionality integration aimed at minimizing power consumption and advancements in mmWave technology to achieve faster data rates.
Analysis of the 5G Chipset Market
In recent years, the 5G chipset market has experienced substantial growth, fueled by technological innovations, an increasing demand for high-speed internet, and a surge in industrial automation needs.
The demand for mobile subscribers and the widespread adoption of smartphones for various applications-such as mobile gaming, home broadband, video conferencing, high-definition movies and television, mobile health services, augmented shopping experiences, and GPS services-are propelling the need for 5G networks, which in turn boosts the demand for 5G chipsets. The growing use of mobile devices for these services is driving up the number of mobile subscribers and smartphone users in the region. Consequently, the increasing use of smartphones for the aforementioned applications necessitates high-speed network connections like 5G. The expansion of 5G infrastructure to accommodate the rising demand for efficient networks has further stimulated the growth of components essential for 5G infrastructure, thereby enhancing the 5G chipset market size.
Overview of the 5G Chipset Market
5G represents the fifth generation of technology standards for cellular networks within the telecommunications sector, succeeding 4G technology that currently connects most mobile phones. Various mobile manufacturers began rolling out 5G technology globally in 2024. This innovative solution offers high-speed networks with peak speeds reaching 10 gigabits per second (Gbit/s) for individual users. Compared to 4G, 5G networks provide greater bandwidth for faster speeds and can support a larger number of connected devices. As the demand for high-speed connectivity becomes increasingly vital in the evolving digital landscape, the need for 5G chipsets has surged. The growing interest in next-generation technologies aimed at enhancing data speeds is further propelling the growth of the 5G chipset market for 5G infrastructure.
Strategic Insights
Drivers and Opportunities in the 5G Chipset Market
Government Initiatives to Foster 5G Network Development
The telecommunications sector is one of the fastest-growing industries worldwide. The US government and various sectors are swiftly adopting 5G technology to unlock its full potential and facilitate digital business transformation. For instance, in September 2024, the US National Science Foundation Directorate for Technology, Innovation and Partnerships (TIP) announced a US$ 25 million investment to tackle challenges related to 5G communication infrastructure and operations by advancing five convergent teams. Additionally, in April 2024, the US Secretary of Commerce introduced the Public Wireless Supply Chain Innovation Fund, which will allocate US$ 1.5 billion towards developing interoperable and open networks. This funding aims to establish a robust future for 5G and next-generation wireless technologies in collaboration with global allies and partners.
Moreover, governments in various APAC countries are actively investing in 5G technology. For example, in September 2024, Malaysia's Prime Minister announced a transition to a dual 5G network, allowing for more effective collaboration with China's Huawei, thus providing Malaysia with a balanced technological approach. In October 2022, India launched its 5G services to enhance the country's digital transformation and connectivity, showcasing various 5G use cases across telecom service providers in sectors such as health, education, worker safety, and smart agriculture. The government also introduced the native 5G NSA Core, developed by the Centre for Development of Telematics (CDoT), and facilitated technology demonstrations of enterprise chipsets, 5G solutions, and networking equipment from Indian telecom MSMEs, startups, and large manufacturers. These initiatives align with the Prime Minister's vision of promoting "Sabka Saath, Sabka Vikas," "Aatmanirbhar Bharat," and "Jai Anusandhan." Thus, the increase in government initiatives for 5G network development is significantly driving market growth for 5G infrastructure.
Growth of Machine-to-Machine (M2M) Connections - A 5G Chipset Market Opportunity
The growth of machine-to-machine (M2M) connections is significantly contributing to the demand for 5G chipsets. M2M connections enable direct communication between devices or machines without human intervention. With the rise of the Internet of Things (IoT) and connected devices, M2M connections have become increasingly important for facilitating data transfer between devices, enabling automation, and improving operational efficiency. The implementation of 5G networks and the development of 5G infrastructure are expected to further accelerate the growth of M2M connections, offering lower latency, higher bandwidth, and greater reliability compared to previous mobile network generations like 3G and 4G. This trend has led to a heightened demand for 5G chipsets capable of supporting rapid data transfer among numerous connected devices.
Segmentation Analysis of the 5G Chipset Market Report
Key segments contributing to the analysis of the 5G chipset market include:
Geographical Analysis of the 5G Chipset Market Share
Scope of the 5G Chipset Market Report
Recent Developments and News in the 5G Chipset Market
The peer-to-peer insurance market is assessed through qualitative and quantitative data collected from primary and secondary research, including significant corporate publications, association data, and databases. Recent developments in the 5G chipset market include:
(Source: Viettel Group, Press Release)
(Source: Qualcomm, Press Release)
Coverage and Deliverables of the 5G Chipset Market Report
The "5G Chipset Market Size and Forecast (2021-2031)" provides a comprehensive analysis of the market, covering the following areas: