5G Chipset Market Forecast to 2027

The 5G chipset market is projected to grow from USD 12.8 billion in 2020 to USD 67.2 Billion by 2027, at a CAGR of 26.7% from 2020 to 2027. The major factors driving the 5G chipset market growth are the growing demand for high-speed internet and broad network coverage, increasing cellular IoT connections, and an increase in mobile data traffic. The developments in wired and wireless network communications technologies due to an exponential rise in data traffic have resulted in high investments in 5G technology by network infrastructure providers.

5G chipsets are the next-generation dedicated cellular connectivity chips designed to carry out high-speed data transfer with lower latency than the current fourth-generation (4G) and 4.5G/4.9G (LTE Advanced/Advanced Pro/Gigabit LTE) chips. These chipsets are expected to offer 10–100× improvements in terms of speed and reduced latency (1 ms) compared with the current networks. They are expected to play a vital role in end-to-end devices such as network equipment and mobile devices. 5G chipsets considered in the report include modem/baseband processors and RFIC.

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Based on type, the RFIC segment to hold the highest growth rate during the forecast period

The 5G chipset market has been segmented based on type into modems and RFIC. RFIC will play an integral role, especially in 5G networks, in the production and commercialization of consumer electronic devices, next-generation base stations, and other radio access products. It is developed to reinforce the overall performance of the 5G base station in terms of high efficiency and compact form factors. Qualcomm (US), Qorvo (US), Broadcom (US), Analog Devices (US), and Samsung Electronics (South Korea) are among the top players developing RFICs for 5G communication.

Based on frequency, the 24–39 GHz segment registered the highest CAGR during the forecast timeframe

Based on frequency, the 5G chipset market has been segmented into three spectrum bands: sub-6 GHz, 24–39 GHz, and above 39 GHz. The 24–39 GHz spectrum will likely play a key role in supporting the burgeoning mobile data traffic growth. 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 the development of new 5G wireless technologies.

Companies such as Qualcomm provides modem-to-antenna solutions like the Snapdragon X55 5G modem, with its 5G mmWave antenna module (QTM525) and 5G mmWave chipsets SDX50M and QTM052. Other companies, such as Analog Devices, provide 5G mmWave chipset. MediaTek provides a 5G system-on-chip (SoC), and Samsung provides 5G RFICs and digital/analog front-end (DAFE) ASICs, which support 28-GHz and 39-GHz bands. Furthermore, network service providers such as Verizon (US), AT&T (US), T-Mobile (US), NTT Docomo (Japan), SK Telecom (South Korea), and Korea Telecom (South Korea) are working on the deployment of 5G services in this band.

Based on process node, the 10–28 nm segment to account for the largest size of the market during the forecast period

5G chipsets with process nodes in the range of 10–28 nm primarily include baseband processors for 5G infrastructure and RFIC components. Qualcomm’s Snapdragon X55 5G modem pairs with a single-chip 14-nm RF transceiver for 5G sub-6 GHz for smartphones and other 5G devices. Advancements in the fabrication process support the improvements in ICs, which have made electronic devices smaller and more power optimized. Some major examples of companies using 10–28 nm process nodes are as follows: NXP’s Layerscape family of programmable 5G baseband processors use IQ-Analog Corp.’s (US) IP, which was prototyped in GlobalFoundries’ 14-nm FinFET manufacturing process. Samsung Electronics mmWAVE 5G RF chips are produced by TSMC on 16-nm and 28-nm production lines.

Based on end use, the mobile devices segment holds the high market share

In mobile devices, 5G connectivity will majorly impact smartphones, tablets, AR and VR devices, and wearable devices, among others. Smartphones and tablets will be the key attraction in the consumer electronics market for 5G network. With the implementation of 5G network, customers can access and download data at high speed. In 5G smartphones, 5G-enabled ASICs are implemented. Increasing use of smartphones drives the demand for 5G chipsets; however, chipset manufacturers are also working on developing 5G chipsets for other mobile devices. One of the major opportunities for 5G in devices beyond smartphones is in the laptop market space.

Regional Insights:
The European region is projected to grow at a higher CAGR during the forecast period

Europe comprises some of the key countries with high adoption of Industry 4.0 and major technologies such as IoT and connected cars. The growth of these technologies is mainly dependent on connectivity, and 5G network is anticipated to play an integral role in this. The emerging application of 5G across the end-use sectors in the region is driving the deployment of 5G networks in Europe. It is expected that 5G connections will reach more than 220 million by 2025 in Europe, accounting for approximately 30% of the world’s 5G connections.