According to Adroit Market Research, the 5G chipset market was valued at US$13.29 billion and is projected to reach US$92.09 billion by 2030, growing at a compound annual growth rate (CAGR) of 21.1%.
As 5G networks are rolled out across different regions worldwide, consumers are increasingly seeking devices capable of utilising the new technology. Compared to earlier generations, 5G devices offer faster upload and download speeds, lower latency, and increased storage capacity, allowing users to access the internet more quickly and reliably. Consequently, the demand for 5G chipsets, which power these devices and provide high-speed connectivity, is rising.
The proliferation of 5G networks globally has heightened the need for 5G chipsets. Telecommunications companies are heavily investing in 5G infrastructure to deliver faster speeds, lower latency, and greater network capacity. This expansion is driving the growth of the 5G chipset market to accommodate the increasing number of devices and users on these networks.
The popularity of smartphones has significantly influenced the development of 5G chipsets. The availability of 5G-capable smartphones has spurred consumer demand for these chipsets, as consumers seek the enhanced connectivity that 5G networks offer. Smartphone manufacturers are rapidly integrating 5G chipsets into their products to meet this growing demand.
Various sectors including automotive, manufacturing, healthcare, and entertainment are adopting 5G technology to transform their industries. The automotive industry requires chipsets for connected cars, while the healthcare sector needs chipsets for telemedicine applications. The development of industry-specific applications is driving the demand for specialised 5G chipsets. Chip makers are continuously improving 5G chipset performance, power efficiency, and support for advanced features. Innovations in chip manufacturing, such as reduced transistor sizes and increased integration, enable the production of more capable and cost-effective 5G chipsets.
There is a growing demand for smartphones, tablets, laptops, IoT devices, and other gadgets with 5G support. This provides chipset manufacturers with opportunities to supply 5G chipsets to device makers, promoting the expansion of 5G device offerings and increasing market share. The rollout of 5G networks also creates new opportunities for IoT applications in sectors such as manufacturing, healthcare, transportation, and smart cities.
These applications require specialised chipsets designed for specific use cases, giving chip makers the chance to develop 5G chipsets tailored to industry-specific needs. Significant investment is needed in base stations, small cells, and network equipment to establish 5G networks. For these infrastructure components, chipmakers have the opportunity to supply 5G chipsets, enabling faster and more efficient network connectivity. Edge computing and 5G networks are closely linked, as 5G networks provide the high bandwidth and low latency needed for real-time data processing at the network edge.
In the US, the 5G chipset market is expected to grow rapidly, with it contributing significantly to the region’s market share. This growth is driven by demand from emerging applications such as the Internet of Things, mobile broadband, and machine-to-machine communications.
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