5G Chipsets Market Size, Growth,Trends & Analysis 2032 (2024)

The global 5G chipsets market size is estimated to be USD 36.29 billion in 2023 and is projected to reach USD 81.03 billion by 2028 at a CAGR of 17.4%.

The growing demand for high-speed internet, the need for better network coverage, increased cellular and M2M IoT connections, growing adoption of 5G in automobiles, increase in mobile data traffic, rising demand for high-speed and low-latency 5G infrastructure, and widespread use of chipsets in consumer electronics is driving the market.

High-speed internet connectivity has become one of the most essential entities in today’s digitally evolving workplaces, commuter hubs, and even homes. Next-generation technology demands beyond mobile internet and improvements in data speed. Demand for connectivity is expected to be driven by trends such as loT, autonomous cars, smart cities, AR/VR, ultrahigh-definition content, and industrial automation. R&D related to developing next-generation wireless broadband technologies is becoming more intense and widespread. With 3G having become entrenched as the mainstream wireless broadband technology and 4G rapidly expanding its prospects across applications, the industry focus has shifted toward developing 5G technology and solutions. 5G will enable a fully connected world with a highly heterogeneous wireless and fixed-access technology network.

5G Chipsets Market Forecast to 2028

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The 5G chips industry is on the cusp of a technological revolution, as artificial intelligence (AI) is revolutionizing the design process by enabling automated and intelligent chip design. Machine learning algorithms analyze vast datasets to optimize layout, power consumption, and performance.

Here are some of the ways AI is being used in 5G chipsets today:

Network Optimization: Al algorithms analyze real-time data to optimize network parameters, enhancing overall performance and efficiency.
Self-Organizing Networks (SON): Al enables autonomous adjustments in network configurations, ensuring optimal functionality and reducing manual intervention.
Predictive maintenance: Al is employed for predictive analytics, identifying potential issues in 5G infrastructure before they lead to downtime, thus improving reliability.
Beamforming Optimization: Machine learning algorithms dynamically adjust beamforming parameters, optimizing signal direction and improving data transfer rates.
Design Acceleration: Al expedites the chipset design process by simulating scenarios, predicting performance outcomes, and reducing time-to-market.

AI has the potential to revolutionize the 5G ICs market in the following ways:

Dynamic Resource Allocation: Al can dynamically allocate network resources based on real-time demand, optimizing bandwidth and enhancing user experience.
Edge Computing Integration: Al at the edge enhances processing capabilities, reducing latency and enabling applications like autonomous vehicles and augmented reality.
Security Enhancement: Al-powered cybersecurity can identify and respond to threats in real-time, fortifying the 5G network against potential attacks.
Customization for Diverse Applications: Al allows the customization of 5G chips to meet specific requirements of diverse applications, from smart cities to industrial loT.

The future of 5G chipsets is bright with AI. We expect to see even more innovative products from the 5G chip manufacturers as AI technology develops.

Here are some of the challenges that need to be addressed for AI to reach its full potential in 5G chipsets:

Data Privacy and Security: Implementing robust measures to safeguard sensitive data is crucial to prevent unauthorized access and maintain user trust.
Skills and expertise: The industry needs professionals in telecommunications and Al to implement and manage these advanced technologies effectively.
Regulation: Adhering to evolving regulations and standards in the Al and telecommunications industries is essential for widespread adoption. Despite these challenges, the future of 5G chips with Al is full of promise. Al has the potential to transform the 5G chipsets industry in the coming years, making it more efficient, safer, and sustainable.

Driver: High use of M2M communication technology

The speed and reliability of 5G are expected to have a massive impact on machine-to-machine (M2M) and IoT. Key reasons for the increased adoption of new M2M technologies are better connectivity for smooth communication and low power requirements. The existing capacity of mobile networks must handle billions of nodes that are anticipated to ascend in the next couple of years to achieve effective M2M communication. Currently, the network capacity cannot manage M2M and human-based communications and their different communication patterns, such as latency time. For this reason, a next-level cellular network for mobile communication featuring hyper-connectivity and larger bandwidth is required (e.g., a 5G network). M2M communication technology will be widely used in heavy manufacturing and process industries (e.g., food industries) to increase the efficiency of different processes and reduce human interference with machines. M2M communication is thus expected to drive the 5G chipsets market.

Restraints: High cost of 5G chips for mobile devices

The high price of 5G chips contributes to increased initial deployment expenses for manufacturers and mobile device producers. This cost is incurred when integrating 5G capabilities into smartphones, tablets, and other mobile devices. The cost of 5G chipsets is a substantial component of the overall manufacturing cost of 5G-enabled devices. This, in turn, affects the retail price of these devices, potentially limiting their affordability for a significant portion of the consumer market. High chipset costs may restrict research, development, and innovation resources in the 5G chipset market. This can potentially slow down technological advancements, limiting the pace of improvements and optimizations.

Opportunities: The emergence of private 5G networks to address wireless communication requirements in industrial IoT

Private 5G networks offer low-latency communication and high reliability, which are crucial for industrial applications. 5G chipsets play a pivotal role in delivering these capabilities, ensuring that the communication infrastructure meets the stringent requirements of industrial environments. Industrial IoT applications generate large volumes of data that require high bandwidth and capacity for efficient and real-time communication. 5G chipsets enable the transmission of massive amounts of data at faster speeds, facilitating the seamless operation of IloT devices and systems. Private 5G networks cater to industrial use cases, including smart manufacturing, predictive maintenance, remote monitoring, and augmented reality applications. The versatility of 5G chips makes them suitable for addressing the diverse communication requirements of these use cases. As industries worldwide recognize the benefits of private 5G networks for their lloT needs, the demand for 5G chips is expected to grow globally.

Challenges: Design challenges for RF devices operating at higher frequency

5G technology operates at higher frequency bands than previous generations, utilizing millimeter-wave (mmWave) frequencies. The design challenge arises because higher frequencies present unique characteristics and technical obstacles that demand careful consideration in RF device design. Higher frequency signals, such as those in the mmWave spectrum, have shorter wavelengths. This results in challenges related to signal propagation and range. Signals at higher frequencies are more prone to absorption by atmospheric gases and are susceptible to obstacles like buildings and foliage, requiring sophisticated design techniques to overcome these limitations. As the 5G landscape evolves, ensuring standardization and compatibility across different devices and manufacturers becomes crucial. Design challenges include meeting industry standards and ensuring interoperability within the diverse ecosystem of 5G-enabled devices.

RFICs type 5G chipsets accounted for a large share of the 5G chipsets market in 2023

Radio frequency integrated circuits (RFICS) have been segmented into RF transceivers and RF front end (FE). RFICS plays a vital role in cellular devices and infrastructure equipment. RFICs will play a crucial role, especially in 5G networks, in producing and commercializing consumer electronic devices, next-generation base stations, and other radio access products. They are developed to reinforce the overall performance of the 5G base station in terms of high efficiency and compact form factors. Qualcomm Technologies, Inc. (US); Qorvo (US); Broadcom (US); Analog Devices, Inc. (US); and SAMSUNG (South Korea) are among the top players developing RFICS for 5G communication.

Mobile devices end-use accounted for a more significant proportion of the 5G chipsets market in 2023

With the proliferation of data-intensive applications such as high-definition video streaming, augmented reality (AR), and virtual reality (VR), there is a growing demand for increased data capacity. 5G's higher bandwidth and data capacity make it well-suited to handle the requirements of these applications on mobile devices. 5G technology offers significantly faster data speeds and lower latency than previous generations. This translates into a vastly improved connectivity experience for mobile device users, enabling faster downloads, smoother streaming, and better overall performance.

The 5G chipset market is witnessing intense competition among semiconductor manufacturers to produce more efficient, compact, and cost-effective solutions. As technology continues to evolve, the market is expected to see innovations in 5G ICs that enable enhanced functionality and improved energy efficiency, paving the way for a new generation of 5G-enabled devices.

The 5G chipsets market for 24-39 GHz frequency accounted for the highest CAGR during the forecast period

24-39 GHz or mmWave frequency band can offer ultra-high-speed mobile broadband 5G service. This spectrum is likely to play a vital role in addressing the issue of mobile data traffic. This spectrum is a mixture of licensed and unlicensed spectrum. There is an increased demand for wireless data bandwidth; additionally, the mobile data experience for users is expanding and developing continuously. Thus, the cellular industry looks forward to this frequency spectrum being utilized in developing new 5G wireless technologies. mmWave frequencies suffer high propagation loss; however, the small form factor of mmWave antenna allows for dense packing of antenna arrays. The increasing number of antenna elements enhances coverage through tighter beams. mmWave-based network devices will likely be employed for short ranges (between 50 and 200 m).

5G chipsets market for 10-28 nm process nodes to account for the highest share of the market during the forecast period

5G chips with process nodes ranging from 10 to 28 nm primarily include baseband processors for 5G infrastructure and RFIC components. Snapdragon X55 5G modem, offered by Qualcomm, pairs with a single-chip 14 nm RF transceiver for 5G sub-6 GHz for smartphones and other 5G devices. Layerscape architecture, provided by NXP, a family of programmable 5G baseband processors, uses the IP of IQ- Analog Corp (US). It was prototyped in Global Foundries' 14 nm FinFET manufacturing process. mmWAVE 5G RF chips, an offering of Samsung Electronics, are produced by TSMC on 16 nm and 28 nm production lines. 22 nm ULP RF technology of TSMC integrates critical mmWave mobile communication devices, such as mmWave front-end modules, including switches, low-noise amplifiers (LNAs), and power amplifiers (PAs), onto a single chip. Further, ADRV9026, offered by Analog Devices, integrated with an RF transceiver for 5G TDD and FDD massive MIMO, macro-cell, and small-cell base stations, is built on 28 nm CMOS.

Some of the recent development by the 5G chips manufacturers are listed below:

November 2022, Qualcomm Technologies, Inc. launched its latest premium mobile platform, Snapdragon 8 Gen 2. Global OEMs will adopt this new mobile platform and brands, including ASUS Republic of Gamers, HONOR, IQOO, Motorola, Nubia, OnePlus, OPPO, RED MAGIC, Redmi, SHARP, Sony Corporation, Vivo, Xiaomi, XINGJI/MEIZU, and ZTE.
October 2022, SAMSUNG announced the industry’s first 512-gigabyte (GB) Compute Express Link (CXL) DRAM module. The new CXL DRAM is built with an application-specific integrated circuit (ASIC) CXL controller. It is the first to pack 512GB of DDR5 DRAM, featuring four times the memory capacity and one-fifth the system latency over the previous Samsung CXL offering.
August 2022, MediaTek Inc. (Taiwan) launched its latest addition to its 5G portfolio, the T830 platform for 5G fixed wireless access (FWA) routers and mobile hotspot customer-premise equipment (CPE). It is built with an M80 modem that supports advanced release 16 capabilities for sub-6GHz band operations, making the platform ideal for 5G networks worldwide.
May 2022, MediaTek announced its Dimensity 1050 System-on-Chip (SoC). It was the first mmWave 5G chips offered by the player to support next-generation 5G smartphones to provide seamless connectivity, displays, gaming, and power efficiency. This combines the mmWave 5G and sub-6GHz to migrate among network bands seamlessly. It is built on the ultra-efficient TSMC 6 nm production process with an octa-core CPU.
February 2022, Qualcomm Technologies, Inc. launched its first 5G Al processor integrated with a 5G Modem-RF System. The player also announced its new portfolio of Snapdragon X65 and X62 5G M.2 Modules, developed in collaboration with Foxconn Industrial Internet and Quectel. This brings the leading 5G connectivity of Qualcomm Technologies to laptop and desktop computers, enabling easy 5G adoption for PCs.
In September 2021, Qorvo introduced two bulk acoustic wave (BAW) filters to support the ongoing global deployment of 5G base stations. The new QPQ3500 and QPQ3501 filters offer base station OEM pin compatibility. The QPQ3500 (Band 42) supports China and Europe, while the QPQ3501 (Bands 42 and 52) addresses 5G base station requirements in China and India.
In August 2021, SAMSUNG (South Korea) introduced three new chipsets to be integrated into next-generation 5G mobile devices. Chipsets include a third-generation mmWave radio frequency integrated circuit (RFIC) chip, a second-generation 5G modem SoC, and a digital front-end (DFE) RFIC-integrated chip.

Some of the recent collaboration by 5G chips manufacturers across the globe

November 2022, Qualcomm Technologies, Inc. partnered with Siemens to reimagine building automation by applying a 5G private network (PN) based on the Snapdragon X55 5G Modem- RF System in the Americas.
In November 2022, Qorvo expanded its collaboration with MediaTek Inc. to enable the power of connectivity in a new generation of 5G smartphones, Wi-Fi equipment, and cars. Qorvo
works closely with MediaTek Inc. to accelerate innovation and deliver cutting-edge performance to leading customers in mobile, networking, automobile, and other markets.
In November 2022, Marvell collaborated with Nokia to advance the ReefShark chipset portfolio of Nokia. The companies have worked closely on the new OCTEON 10 data processing unit (DPU), which augments the ReefShark family with best-in-class 5G transport built on cutting-edge 5 nm processor and hardware acceleration technology. The jointly developed solution equips mobile network operators to rapidly evolve their networks and deliver innovative new 5G services at high performance and capacity with ultra-low latency and energy efficiency.
In October 2022, the technology company HFCL Limited (India) announced its collaboration with Qualcomm Technologies Inc. (US) to design and develop 5G outdoor small cell products for HFCL. According to HFCL, the investment will provide a faster rollout of 5G networks and improve the user experience while enhancing the efficient utilization of the 5G spectrum.
March 2022, NXP Semiconductor partnered with Compal to power a new integrated small cell solution offered by Compal to address 5G network densification with NXP's Layerscape and Layerscape access family of processors. This small-cell solution delivers high performance for enhanced 5G coverage across public and private networks.
November 2021, MediaTek Inc. (Taiwan) announced a collaboration with AMD to co-engineer industry-leading Wi-Fi solutions, starting with the AMD RZ600 Series Wi-Fi 6E modules containing the new Filogic 330P chipset of MediaTek Inc. The Filogic 330P chipset will power next-generation AMD Ryzen-series laptop and desktop PCs in 2022 and beyond, delivering fast Wi-Fi speeds with low latency and less interference from other signals.

5G Chipsets Market by Region

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Top 5G Chipset Companies - Key Market Players

The 5G Chipsets companies have implemented various types of organic as well as inorganic growth strategies, such as new product launches and acquisitions, to strengthen their offerings in the market. The major players in the 5G Chipsets market are Qualcomm Technologies, Inc. (US), MediaTek Inc. (Taiwan), Huawei Technologies Co., Ltd. (China), SAMSUNG (South Korea), and Broadcom (US) among others. The other companies profiled in the report are Qorvo, Inc (US), Skyworks Solutions, Inc. (US), Analog Devices, Inc. (US), Marvell (US), Anokiwave, Inc (US), NXP Semiconductors (Netherlands), Xilinx (Acquired by AMD) (US), Texas Instruments Incorporated (US), Murata Manufacturing Co., Ltd. (Japan), Renesas Electronics Corporation (Japan), Infineon Technologies AG (Germany), MACOM (US), u-blox (Switzerland), Sivers IMA (Sweden), Unisoc (Shanghai) Technologies Co., Ltd. (China), Arm Limited (UK), Cadence Design Systems, Inc. (US), Fibocom Wireless Inc. (China), Quectel (China), and OMMIC (France).

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Scope of the Report

Report Metric	Details
Estimated Market Size	USD 36.3 Billion
Projected Market Size	USD 81.0 Billion
Growth Rate	17.4%
Years considered	2019–2028
Base year considered	2022
Forecast period	2023–2028
Forecast units	Value (USD million/billion)
Segments covered	Type, End – Use, Process Node, and Frequency
Regions covered	North America, Europe, APAC, and the Rest of the World
Companies covered	Qualcomm Technologies, Inc. (US), MediaTek Inc. (Taiwan), Huawei Technologies Co., Ltd. (China), SAMSUNG (South Korea), and Broadcom (US), Qorvo, Inc (US), Skyworks Solutions, Inc. (US), Analog Devices, Inc. (US), Marvell (US), Anokiwave, Inc (US), NXP Semiconductors (Netherlands), Xilinx (Acquired by AMD) (US), Texas Instruments Incorporated (US), Murata Manufacturing Co., Ltd. (Japan), Renesas Electronics Corporation (Japan), Infineon Technologies AG (Germany), MACOM (US), u-blox (Switzerland), Sivers IMA (Sweden), Unisoc (Shanghai) Technologies Co., Ltd. (China), Arm Limited (UK), Cadence Design Systems, Inc. (US), Fibocom Wireless Inc. (China), Quectel (China), and OMMIC (France). The study includes an in-depth competitive analysis of these key players in the 5G Chipsets market with their company profiles'

5G Chipsets Market Highlights

In this report, the overall 5G Chipsets market has been segmented based on Type, End – Use, Process Node, and Frequency

Segment	Subsegment
By Type:	MODEMs RFICs RF TRANSCEIVER RF FE
By End–Use:	Telecommunication Infrastructure Macro Cells Small Cell Customer Premises Equipment (CPE) Mobile Devices Smartphones Tablets & Laptops Mobile Hubs Robots/Drones Wearables AR/VR Devices Non-Mobile Devices IoT Gateways Surveillance Cameras Automobile
By Region:	North America US Canada Mexico Europe UK Germany France Rest of Europe APAC China Japan South Korea Rest of Asia Pacific Rest of the World Middle East and Africa South America

Recent Developments

In December 2022, MediaTek Inc. announced its newest chipset for premium 5G smartphones. Smartphones, the Dimensity 8200. The new chipset delivers unparalleled power efficiency. It also integrates an octa-core CPU with four Arm Cortex-A78 cores operating up to 3.1 GHz and a powerful Mali-G610 graphics engine for better application performance.
In December 2022, Skyworks Solution launched the SKY66319-11, a highly efficient, wide instantaneous bandwidth possessing a fully input/output matched power amplifier (PA) with high gain and linearity. The compact 5 × 5 mm PA is designed for TDD 4G LTE and 5G systems operating from 4400 to 5000 MHz. The active biasing circuitry is integrated to compensate PA performance over temperature, voltage, and process variation
In December 2022, Skyworks Solutions, Inc. introduced the highest efficiency portfolio of Wi-Fi front-end modules (FEMs) in the industry in collaboration with Broadcom, addressing the power, performance, and thermal requirements of Wi-Fi 6/6E-enabled devices in next-generation enterprise and internet of things (IoT) products.
In November 2022, Qualcomm Technologies, Inc. partnered with Siemens to reimagine building automation by applying a 5G private network (PN) based on the Snapdragon X55 5G Modem-RF System in the Americas.

Frequently Asked Questions (FAQ):

Who are the top 5 players in the 5G Chipsets market?

The major vendors operating in the industry market are Qualcomm Technologies, Inc. (US), MediaTek Inc. (Taiwan), Huawei Technologies Co., Ltd. (China), SAMSUNG (South Korea), and Broadcom (US).

What are some of the technological advancements in the market?

Massive Multiple Input, Multiple Output (MIMO) is considered the key enabler for 5G wireless networks and implies techniques that increase cellular coverage and capacity using large numbers of antennas. Inside a mobile device, there are limits to fitting antennas, but 5G is designed to support massive MIMO, using up to 256 antenna elements in the base station. That sets the stage for intelligent beamforming and beam-tracking in spectrum bands under 6GHz. A Massive MIMO system significantly enhances the throughput of the system along with simplifying the signal processing required.

What are the factors driving the growth of the market?

Growing mobile data traffic and faster data rates.

What are their major strategies to strengthen their market presence?

The major strategies adopted by these players are product launches and contracts.

Which major countries are considered in the APAC region?

The report includes an analysis of China, Japan, South Korea, and the Rest of Asia Pacific.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

TABLE OF CONTENTS

1 INTRODUCTION (Page No. - 28)

1.1 STUDY OBJECTIVES

1.2 MARKET DEFINITION

1.2.1 INCLUSIONS AND EXCLUSIONS

1.3 STUDY SCOPE

1.3.1 MARKETS COVERED

1.3.2 REGIONAL SCOPE

1.3.3 YEARS CONSIDERED

1.4 CURRENCY CONSIDERED

1.5 LIMITATIONS

1.6 STAKEHOLDERS

1.7 SUMMARY OF CHANGES

2 RESEARCH METHODOLOGY (Page No. - 32)

2.1 RESEARCH DATA

FIGURE 1 RESEARCH DESIGN

2.1.1 SECONDARY AND PRIMARY RESEARCH

2.1.2 SECONDARY DATA

2.1.2.1 Major secondary sources

2.1.2.2 Secondary sources

2.1.3 PRIMARY DATA

2.1.3.1 Primary interviews with experts

2.1.3.2 Primary sources

2.1.3.3 Breakdown of primaries

2.1.3.4 Key industry insights

2.2 MARKET SIZE ESTIMATION

2.2.1 BOTTOM-UP APPROACH

2.2.1.1 Approach to derive market share using bottom-up analysis (demand side)

FIGURE 2 BOTTOM-UP APPROACH

2.2.2 TOP-DOWN APPROACH

2.2.2.1 Approach to derive market share using top-down analysis (supply side)

FIGURE 3 TOP-DOWN APPROACH

2.3 MARKET BREAKDOWN AND DATA TRIANGULATION

FIGURE 4 DATA TRIANGULATION

2.4 RESEARCH ASSUMPTIONS

2.5 ASSUMPTIONS RELATED TO RECESSION

TABLE 1 ASSUMPTIONS RELATED TO RECESSION

3 EXECUTIVE SUMMARY (Page No. - 41)

3.1 GROWTH RATE ASSUMPTIONS/FORECASTS

3.2 RECESSION IMPACT ANALYSIS

FIGURE 5 GDP GROWTH PROJECTIONS TILL 2023 FOR MAJOR ECONOMIES

FIGURE 6 PROJECTIONS FOR 5G CHIPSETS MARKET, 2019–2028

FIGURE 7 YEARLY GROWTH TREND IN 5G CHIPSETS MARKET

TABLE 2 5G CHIPSETS MARKET, 2019–2022 (USD BILLION)

TABLE 3 5G CHIPSETS MARKET, 2023–2028 (USD BILLION)

FIGURE 8 RFICS SEGMENT TO ACCOUNT FOR LARGER SHARE OF 5G CHIPSETS MARKET DURING FORECAST PERIOD

FIGURE 9 AUTOMOBILE SEGMENT TO REGISTER HIGHEST CAGR IN 5G CHIPSETS MARKET DURING FORECAST PERIOD

FIGURE 10 10–28 NM SEGMENT TO HOLD LARGEST SHARE OF 5G CHIPSETS MARKET IN 2028

FIGURE 11 ASIA PACIFIC TO ACCOUNT FOR LARGEST SHARE OF 5G CHIPSETS MARKET DURING FORECAST PERIOD

4 PREMIUM INSIGHTS (Page No. - 48)

4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN 5G CHIPSETS MARKET

FIGURE 12 GROWING DEMAND FOR HIGH-SPEED INTERNET AND BROAD NETWORK COVERAGE

4.2 5G CHIPSETS MARKET FOR MOBILE DEVICES, BY END USE

FIGURE 13 WEARABLES SEGMENT TO REGISTER HIGHEST CAGR BETWEEN 2023 AND 2028

4.3 5G CHIPSETS MARKET FOR TELECOMMUNICATION INFRASTRUCTURE, BY END USE

FIGURE 14 CPE SEGMENT TO EXHIBIT HIGHEST CAGR BETWEEN 2023 AND 2028

4.4 ASIA PACIFIC 5G CHIPSETS MARKET, BY END USE AND COUNTRY

FIGURE 15 MOBILE DEVICES SEGMENT AND CHINA TO HOLD LARGEST SHARES OF ASIA PACIFIC 5G CHIPSETS MARKET IN 2023

4.5 5G CHIPSETS MARKET, BY FREQUENCY

FIGURE 16 SUB–6 GHZ SEGMENT TO HOLD LARGEST SHARE OF 5G CHIPSET MARKET IN 2028

4.6 5G CHIPSETS MARKET, BY REGION

FIGURE 17 EUROPE TO RECORD HIGHEST CAGR BETWEEN 2023 AND 2028

5 MARKET OVERVIEW (Page No. - 51)

5.1 INTRODUCTION

5.2 MARKET DYNAMICS