5G Chipset Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The 5G chip market is expected to grow rapidly. The current value of the market is expected to reach $ 7.65 billion by 2024, which will rise to $ 60 billion by 2035. CAGR is 20.59% from 2025 to 2035, indicating that the demand for high-speed communications is in great demand. The main driving force is the increasing use of 5G technology in the telecommunications, automobile and IoT industries. The demand for high-speed, low-latency 5G chips will increase as the industry continues to take advantage of the high-speed, low-latency capabilities of 5G. There are several major technological trends driving this market, such as the rise of smart cities, the popularity of driverless vehicles, and the emergence of enhanced mobile broadband services. In the 5G chip industry, companies such as Qualcomm, Intel and MediaTek have already entered the field of research and development, and have made great strides in 5G chip R & D. The strategic cooperation with operators and the investment in next-generation technology will also accelerate the development of the market. For example, Qualcomm has teamed up with several major mobile phone manufacturers to build 5G into their products. The 5G chip industry is expected to play a critical role in shaping the future of communication.

Regional Market Size

Regional Deep Dive

The 5G chipset market is experiencing significant growth in various regions, owing to the increasing demand for high-speed connection and the proliferation of IoT devices. In North America, the market is characterized by advanced technological infrastructure and the strong presence of leading semiconductor companies. In Europe, 5G deployment is facilitated by regulatory frameworks. The Asia-Pacific region is rapidly adopting 5G, driven by its large population and increasing penetration of smartphones. The Middle East and Africa are catching up with their investment in telecommunications, and Latin America is accelerating its 5G development through collaboration. Each region offers opportunities and challenges, and each region contributes to the 5G market’s overall growth.

Europe

• The European Union has launched the '5G Action Plan' to ensure that all member states have access to 5G by 2025, which is fostering collaboration among telecom operators and chipset manufacturers.
• Companies like Ericsson and Nokia are at the forefront of developing 5G chipsets, with a focus on creating solutions that cater to the unique needs of European markets, such as smart cities and industrial automation.

Asia Pacific

• China is leading the charge in 5G adoption, with companies like Huawei and ZTE heavily investing in 5G chipset development, which is expected to significantly boost the regional market.
• The Indian government has initiated the 'Digital India' program, which aims to enhance digital infrastructure, including 5G, thereby increasing the demand for chipsets in the region.

Latin America

• Brazil has initiated several pilot projects for 5G technology, with local telecom operators collaborating with international chipset manufacturers to test and deploy 5G networks.
• The region is seeing increased investment from companies like Qualcomm and MediaTek, which are focusing on providing affordable 5G chipsets to cater to the diverse economic landscape of Latin America.

North America

• The Federal Communications Commission (FCC) has been actively auctioning spectrum for 5G services, which has accelerated the deployment of 5G networks across the U.S., leading to increased demand for chipsets.
• Major companies like Qualcomm and Intel are investing heavily in R&D for 5G chipsets, focusing on innovations that enhance performance and energy efficiency, which is expected to drive market growth.

Middle East And Africa

• Countries like the UAE and Saudi Arabia are investing in 5G infrastructure as part of their national visions, which is driving demand for advanced chipsets to support these networks.
• Telecom operators in the region, such as Etisalat and STC, are partnering with global chipset manufacturers to accelerate the rollout of 5G services, which is expected to enhance connectivity and economic growth.

Did You Know?

“As of 2023, over 1 billion 5G devices are expected to be in use globally, highlighting the rapid adoption of this technology across various sectors.” — GSMA Intelligence

Segmental Market Size

The 5G chip market is growing rapidly and plays a crucial role in the development of next-generation mobile networks. It is driven by the growing demand for high-speed data transmission, the proliferation of IoT devices, and the continuous development of mobile communication technology. Moreover, in some countries, such as North America and Asia-Pacific, the government is actively pushing for the construction of 5G, which has accelerated the development of the industry. The 5G chip market is now at the stage of mass production, and the leading companies are Qualcomm and MediaTek. The most remarkable 5G projects are the extensive construction of 5G in the United States and South Korea. The main applications of 5G chips are smart cars, smart cities, and enhanced mobile broadband. The trend of digital transformation and green development will accelerate the development of 5G chips, and the development of 5G chips will be more efficient and reliable.

Future Outlook

From 2024 to 2035, the market value of 5G chips will be expected to rise from 765 million to 600 billion, with a high annual growth rate of 20.59%. The main reason for this growth is the growing demand for high-speed connections in the communications industry, including the automobile industry, the Internet of Things, and so on. The use of 5G is expected to reach 75% of all mobile devices by 2030, driving the demand for advanced chips to support high speed and low latency. And the development of more efficient silicon materials, the integration of artificial intelligence into chip design, etc., will further promote the development of the industry. The government's active policy support and 5G network construction will also play a major role in promoting the development of the industry. The rise of smart cities and the development of edge computing will also create new opportunities for 5G chips, which are necessary for real-time data transmission and connections in new fields. The overall development of the 5G chip industry will be greatly promoted by the demand of consumers and the strategic layout of industry.