Asia-Pacific is expected to witness the highest growth during the forecast period. North America is expected to hold the largest 5G chipset market share
The global 5G Chipset market size is expected to be worth USD 2,120 Million in 2020. The same, as per a report by Valuates Reports, is projected to reach USD 22,929 Million by 2026, registering a CAGR of 48.7 per cent from 2020 to 2026.
“Asia-Pacific is expected to be the highest contributor to the global market, with $752.6 million in 2020, and is estimated to reach $8,713 million by 2026, registering a CAGR of 50.5 per cent during the forecast period,” read the report.
What’s influencing the 5G chipset market
The growing demand for mobile data services is expected to increase the 5G chipset market size growth. Demand for mobile data services is driven primarily by increasing consumer electronic devices and business-to-business (B2B) communication systems. As a result, increasing mobile data traffic will push network providers to deliver more bandwidth to consumers; this aspect is expected to fuel demand for 5G mobile broadband technology in the future.
The growing need for high-speed chipset components for applications such as Vehicle to Everything (V2X) and drone connectivity that require ultra-reliable low-latency connectivity is expected to boost the 5G chipset market size.
The Internet of Things (IoT) continues to increase globally as a variety of smart cities, smart infrastructure and smart grid initiatives are underway in various parts of the world. Several manufacturing companies have begun deploying IoT devices to track machine output in real-time to minimize total downtime and increase operational efficiency. The rise in demand for IoT devices is projected to fuel the 5G chipset market size growth.
The continued focus on creating new and creative chipset modules for telecommunications base stations to reduce the overall size and power consumption is expected to further drive the growth of the 5G chipset market size during the forecast period.
“While COVID-19 has reduced the rate of adoption of 5G services globally, it has had a marginal effect on the 5G chipset market as it is an evolving technology, and only a few industries use 5G-enabled network services. In addition, COVID-19 has led various industries to move their operations entirely to remote servers, requiring a high-speed data link and lower latency. This is expected to boost the 5G chipsets market size during the forecast period,” read the report.