Global 5G Chipset Market to Reach $22.93 Billion by 2026

According to a report by Allied Market Research, the global 5G chipset market is estimated to reach $2.12 billion by 2020 and is projected to reach $22.93 billion by 2026, registering a CAGR of 48.7% during the period from 2020 to 2026.

The report, titled, 5G Chipset Market by IC Type (ASIC, RFIC, Cellular IC, and mmWave IC), Operational Frequency (Sub 6Hz, Between 26 & 39 GHz, and Above 39 GHz), Product (Devices, Customer Premises Equipment, and Network Infrastructure Equipment), and Industry Vertical (Automotive & Transportation, Energy & Utilities, Healthcare, Retail, Consumer Electronics, Industrial Automation, and Others): Global Opportunity Analysis and Industry Forecast, 2020-2026 - offers a detailed analysis of the driving forces & opportunities, major market segments, top investment pockets, key player positioning, and competitive landscape.

The growth of the global 5G chipset market is driven by factors such as rapid developments in automated devices, increase in demand for mobile broadband services, and swift proliferation of M2M/IoT connections. However, heavy investment and technological & infrastructure challenges in the implementation of 5G networks hamper market growth. Moreover, privacy & security concerns hamper the growth of the market. On the contrary, an increase in government initiatives for developing smart cities is expected to create lucrative opportunities for the key players in future.

The ASIC segment is expected to hold the largest market share in 2020, contributing about 48% of the total revenue, owing to the rise in demand for custom chips. However, the mmWave IC segment is estimated to register the fastest CAGR of 55.3% during 2020-2026, owing to high demand for integrated circuits (ICs) in the automotive sector. The other IC types analyzed in the report include RFIC and cellular IC.

Chipsets operating in the range of 26-39 GHz frequency segment would portray the fastest CAGR of 60.6% during the study period, owing to their ability to cater to multiple 5G devices and better availability of frequency band for seamless connectivity. However, the sub 6 GHz frequency segment is estimated to hold the largest share in the market in 2020, contributing about 77% of the total share, as most of the consumer electronic devices such as laptops and smartphones fall under this operating frequency. Moreover, the report analyzes the above 39 GHz frequency segment.

The devices segment is anticipated to hold the largest share in 2020, contributing more than three-fourths of the total market, owing to the projected surge in the number of devices that would be embedded with 5G chipset. However, the network infrastructure equipment segment is expected to register the fastest CAGR of 51.6% during the study period (2020 - 2026), owing to the surge in the number of smart city projects across the globe. Furthermore, customer premises equipment segment is expected to witness steady growth during the forecast period.

The consumer electronics segment is expected to govern the market in terms of revenue in 2020, contributing about two-thirds share of the total revenue, owing to rise in sales of consumer electronic devices such as smartphones, tablets, and laptops. However, automotive and transportation segment is estimated to manifest the fastest CAGR of 53.9% during the study period, owing to the advent of autonomous & connected vehicles. The other segments analyzed in the report include energy & utilities, healthcare, retail, industrial automation, and others.

The Latin America, Middle East, and Africa (LAMEA) region is anticipated to register the fastest CAGR of 58.2% during the study period, owing to the government initiatives to launch 5G technology in developed regions such as U.A.E. and Qatar. However, the Asia-Pacific region would hold the largest share, contributing more than one-third share of the market in 2020, owing to an increase in government initiatives for building smart cities in the region. The other regions analyzed in the report include such as North America and Europe.

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