Report: 5G chipset industry to reach $67.2 Billion by 2027
ResearchAndMarkets.com, in their latest 5G report predict that the 5G chipset market will grow from USD 12.8 billion in 2020 to USD 67.2 billion by 2027, at a CAGR of 26.7%.
The major factors driving the growth of the 5G chipset market are the growing demand for high-speed internet and broad network coverage, increasing cellular IoT connections, and an increase in mobile data traffic. On the down side, the high cost of the 5G chipset is expected to restrain the growth of the market. RFIC segment to witness highest growth in 5G chipset market in coming years The RFIC segment, which includes RF transceiver and RF FE (Front End), is expected to witness highest CAGR in coming years. The mobiles devices and telecommunication infrastructure segments are expected to be the major contributors to the growth of the RFIC market. The increasing number of RF transceiver ICs in smartphones is the key factor expected to drive the growth of the 5G chipset market for RFIC. The deployment of mmWave ICs in 5G infrastructure equipment and the high bandwidth offered by mmWave technology are expected to support the market growth.
Improved fabrication processes
Advancements in the fabrication process are supporting the improvements in ICs, which has made electronic devices smaller and more power optimized. By process node, the 5G chipset market can be partitioned into less than 10 nm, 10-28 nm, and above 28 nm. Some of the major process nodes on which 5G chipset components such as modems and RFICs are manufactured include 5 nm, 7 nm, 10 nm, 14 nm, 28 nm, 45 nm, 60 nm, and so on. 5G chipsets with process node between 10 and 28 nm mostly include baseband processors for 5G infrastructure and RFIC components.
Emerging mmWave spectrum
The 24-39 GHz band is expected to grow at highest CAGR from 2020 to 2027 and is expected to offer ultra-high-speed mobile broadband 5G services. Likely to play a key role in supporting the burgeoning mobile data traffic growth, the high bandwidth offered by this spectrum and the improving participation of telecom service providers in this spectrum are fueling the growth of the 24-39 GHz frequency band.
Mobile devices to hold largest share of 5G chipset market
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 will drive the demand for 5G chipsets, however, chipset manufacturers are working on developing 5G chipsets for other mobile devices too.
APAC to lead
APAC is witnessing dynamic changes in the adoption of new technologies and advancements in organizations across industries. The 5G network is expected to play an integral role in advanced technologies such as IoT and M2M communication and applications such as smart cities and industrial automation. 5G connectivity is suited to these areas, as it provides simultaneous connectivity for multiple devices and has low latency, which, in turn, improves the overall performance of the system. According to GSMA, 23% of the total mobile connections in Asia Pacific will be running on 5G networks by 2025. With 5G already launched in 9 countries, with 12 others having plans to roll out in the near future, Asia Pacific is anticipated to be the largest market for 5G chipsets. In APAC, the investments look promising, as most countries such as China, Japan, and South Korea have successfully contained the virus compared with the US and European countries. China is easing the restrictions placed on factory lockdowns and worker movement. The major telecommunication equipment providers in the region, including ZTE and Huawei Technologies, have signed more than 95 5G commercial deals with global leading operators. Huawei has been providing support to launch 35 5G commercial networks by December 2020.
The report can be found here
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