With the global adoption and expanding application of 5G technology, consumers are increasingly seeking devices that can take advantage of new technologies. Compared to previous generations of smartphones, 5G devices offer faster upload and download speeds, lower latency, and greater storage space, enabling users to access the internet faster and more reliably. As a result, the demand for 5G chipsets is on the rise that can power these devices, enabling them to deliver the high-speed connectivity that customers want.
The 5G chipset is the core component that enables high-speed connectivity of 5G devices. With the gradual rollout of 5G networks around the world, the demand for 5G chipsets is also rising rapidly. According to a report by Adroit Market Research, the 5G chipset market was valued at $1.326 billion in 2020 and is expected to grow to $9.205 billion by 2030, showing a strong compound annual growth rate (CAGR) of 21.8%. Grand View Research's forecast is more optimistic, predicting that the global 5G chipset market will reach $14.369 billion by 2030, with a CAGR of 20.3%.
Technological advancements and expanding applications are the major factors driving the growth of the 5G chipset market. As 5G technology continues to mature, a wide range of consumer electronics products, including smartphones, tablets, laptops, and Internet of Things (IoT) devices, are rapidly integrating 5G chipsets. In addition, the application of 5G technology in vertical industries such as automotive, manufacturing, healthcare, and entertainment is also expanding, bringing new growth points to the 5G chipset market.
Chart: The 5G chipset market is expanding
5G-enabled smartphones, tablets, laptops, IoT devices, and other devices are in increasing demand. This provides chipset manufacturers with the opportunity to offer 5G chipsets to device manufacturers, thereby facilitating the expansion of 5G equipment supply and gaining a larger market share. The rollout of 5G networks opens up new opportunities for IoT applications in industries such as manufacturing, healthcare, transportation, and smart cities. These applications require dedicated chipsets created for specific use cases, which provides chipmakers with the opportunity to offer industry-specific 5G chipsets to meet the specific needs of these applications. To build a 5G network, significant investments must be made in base stations, small cells, and network equipment.
In terms of regional distribution, the Asia-Pacific region is expected to be a major driver for the growth of the 5G chipset market. The rapid development of emerging economies such as China, Japan, and India, as well as the growing demand for broadband services in these countries, provide a broad space for the development of the 5G chipset market. The North American region, especially the United States, is also expected to hold a significant position in the 5G chipset market due to its early adoption of 5G technology and the concentration of leading players.
Despite the promising market, the 5G chipset market also faces some challenges. The high cost is one of the major factors restraining the growth of the market. The price of 5G chipsets is nearly 50% higher compared to 4G technology, which could impact the speed of adoption by consumers and businesses. However, with improvements in manufacturing processes and economies of scale, the cost of 5G chipsets is expected to gradually decrease, thereby driving further expansion of the market.
