5G CHIPSET MARKET ANALYSIS

5G Chipset Market Size and Trends

The Global 5G Chipset Market is estimated to be valued at US$ 32.05 Bn in 2024 and is expected to reach US$ 108.52 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 19% from 2024 to 2031.

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The 5G chipset market growth is driven by increasing adoption of smartphones and mobile broadband services compatible with 5G technology. Growing mobile data traffic and rising need for high-speed internet are further fueling the adoption of 5G networks among telecom operators. 5G provides low-latency and high-bandwidth connections which is expanding its usage in applications such as autonomous driving, IoT, AR/VR, and industrial robotics. Leading telecom players make significant investments for deploying 5G infrastructure which is generating strong demand for 5G chipsets from telecom equipment manufacturers. Furthermore, reduction in 5G chipset prices with technology advancements is expected to increase its affordability and adoption rate globally during the forecast period.

Increasing mobile data traffic

The ever-growing demand for bandwidth is one of the key drivers of the global 5G chipset market growth. As smartphones and other wireless devices become more sophisticated with multiple cameras, HD, and even 4K displays, as well as new applications like VR and AR, the amount of mobile data being consumed continues to rise exponentially. With more users now streaming video and accessing rich media content on the go, they expect fast and reliable internet access wherever they are. 5G technology promises data speeds that are 10-100 times faster than current 4G LTE networks, with ultra-low latency. This will enable data-heavy applications and use cases which were not possible before. The ability of 5G networks to meet the surging bandwidth demand from both consumers and businesses is vital, driving the need for 5G chipsets that can support these advanced capabilities.

Advancement of IoT and connected devices

The growth of IoT (Internet of Things) and connectivity of more "things" to the internet is another major driver for 5G chipsets demand. Application areas ranging from smart cities and industrial automation to consumer wearables, healthcare devices, and automotive telematics will all leverage connectivity enabled by 5G. The demands of IoT are very different from traditional smartphones - requirements include supporting massive number of low-power devices, ultra-reliable low latency communication for mission-critical applications as well as mobility. Current cellular technologies struggle to meet these requirements. 5G on the other hand has been designed from the ground up with IoT use cases in mind, featuring capabilities such as reduced network latency and ability to support much larger numbers of low bandwidth connections simultaneously. As a result, 5G chipsets that enable these advanced IoT connectivity capabilities are seeing heavy demand. The rapid growth of IoT is a key force driving the global 5G chipset market forward.