5G AI, Memory, and PA Semiconductors Market Forecast to Reach $15.03 Billion by 2025: Frost & Sullivan

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  • A majority of the deployments in the coming years are expected to be in the sub-6 GHz range
  • Memory integrated circuits (ICs) supporting 5G end-user markets will be the highest contributors

Frost & Sullivan’s recent analysis finds that the 5G AI, memory, and power amplifier (PA) semiconductor market is rapidly transitioning from a nascent stage to a growth stage. It is strongly driven by exponentially increasing data traffic, technological advancements leading to hardware performance and capability improvements, and the emergence of new use cases. Registering an unprecedented growth at a compound annual growth rate (CAGR) of 74.3 per cent, the market for 5G AI, memory, and PA semiconductors is estimated to garner revenue of $15.03 billion by 2025 from $536.9 million in 2019.

“5G is in the early commercialization stage, and a majority of the deployments in the coming years are expected to be in the sub-6 GHz range. Hence, short-term opportunities will be limited to traditional devices, such as smartphones, communication infrastructure, and laptops,” said Prabhu Karunakaran, Test & Measurement Industry Analyst at Frost & Sullivan.

Manufacturing Sector

To mitigate the issues of surging operational costs in the manufacturing sector, semiconductor companies must work with network equipment manufacturers and robotics system manufacturers to integrate cost-effective memory, PA, and AI chips and capitalize on the opportunity.

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Healthcare Sector

The spread of the COVID-19 pandemic has resulted in a sudden rise in the adoption of robotics in the healthcare sector. AI and PA market participants should look into optimizing the existing products to leverage this unprecedented opportunity.

Automotive Sector

Autonomous vehicles need an ultra-fast, reliable network that processes huge volumes of data. Hence, 5G AI, PA, and memory device manufacturers should develop automotive-grade devices that function reliably.

Retail Sector

AI, memory, and PA semiconductor market participants should increasingly focus on developing solutions for 5G edge servers that will require processing large data volumes.

Agriculture Sector

Digitization is transforming the agriculture sector rapidly. Market players must work with system and device manufacturers to develop cost-effective, application-specific integrated circuits to enhance farm productivity.

“Further, the AI processor market for 5G applications is rapidly growing, specifically in edge devices. They are expected to play a significant role in various devices, including edge servers and autonomous cars,” said Karunakaran.

He added, “Memory integrated circuits (ICs) supporting 5G end-user markets will be the highest contributors. Power amplifier IC is estimated to have generated larger revenue due to multiple 5G deployments, with revenue from the infrastructure segment. Additionally, AI is in the infancy stage and is expected to grow significantly in the next five years.”

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