Data Bridge: 5G Chipset Market Expected to Reach $2,519.78 Billion by 2029 with CAGR of 49.02%
Data Bridge Market Research has released a new report, “5G Chipset Market Report-Development Trends, Threats, Opportunities and Competitive Landscape” focusing on primary and secondary drivers, market share, market size, sales volume, leading segments and geographical analysis of 5G silicon.
The 5G chipset market will exhibit a CAGR of 49.02% for the forecast period of 2022-2029 and is likely to reach the $2,519.78 billion by 2029. The rise in the cellular IoT (internet of things) connections will influence the growth rate of the 5G chipset market. The upsurge in the demand for high speed internet and broad network coverage is a key element driving market expansion. The 5G chipset market is also being driven by factors such as rising mobile data traffic and increasing need for smart technologies.
Furthermore, technological advancements and increase in the popularity of 5G-enabled smartphones will enhance the growth rate of 5G chipset market. Also, the upsurge in the demand for ultra-reliable and low-latency data networks capable of providing seamless connectivity will act as a major factor influencing the growth of 5G chipset market.
Asia-Pacific dominates the 5G chipset market and will continue to flourish its trend of dominance due to the growing level of investment in research and development, increase in developments in emerging 5G enabled smartphones and base stations supporting 5G frequencies in this region. North America is expected to grow during the forecast period of 2022-2029 due to the rapidly rising automotive and consumer electronics sectors in this region.
Top Players Analyzed in the Report:
- Analog Devices
- Texas Instruments
- NXP Semiconductors
- Huawei Technologies
- Qualcomm Technologies
- Intel Corporation
- Infineon Technologies
- Renesas Electronics Corporation
- Qorvo, Marvell
- Unisoc (Shanghai) Technologies
- Skyworks Solutions
Key Market Segmentation:
- On the basis of frequency type, the 5G Chipset Market has been segmented as sub-6Hz, between 26 and 39 GHz and above 39 GHz.
- Based on processing node type, the 5G chipset market has been segmented into 7 nm, 10 nm and others.
- Global 5G chipset market on the basis of chipset type has been segmented as application-specific integrated circuit (ASIC), radio frequency integrated circuit (RFIC), millimeter wave integrated circuit (mmWave IC) and cellular integrated circuit (cellular IC).
- Based on deployment type, the 5G chipset market has been segmented into telecom base station equipment, smartphones/tablets, connected vehicles, connected devices, broadband access gateway and others. Apart from telecom base station equipment, all other categories can be further sub-segmented into single-mode and multi-mode. Single-mode can be divided into standalone and non-standalone.
- Based on end user, the 5G chipset market has been segmented as energy and utilities, manufacturing, IT and telecom, media and entertainment, transportation and logistics, healthcare and others.
In January 2021, MediaTek had launched chipset to power 5G smartphones. They launched new Dimensity 1200 and Dimensity 1100 5G smartphone chipset along with the developed AI, camera and multimedia properties for superior 5G experience. Both chipsets support every generation of connectivity, from 2G to 5G, as well as the most up-to-date connectivity capabilities.
In June 2021, start-up EdgeQ had launched industry’s first 5G Chipset-as-a-Services for 5G wireless infrastructure market. Customers can configure 5G and AI services with EdgeQ’s innovative software defined 5G base station-on-a-chip technology, which changes the industry to a service-oriented, pay-as-you-go structure.
In May 2021, Qualcomm had launched 5G modem elevated for industrial IoT. The Qualcomm 315 5G IoT modem enables global 5G NR sub-6GHz bands and functions in stand-alone (SA) alone mode, with the flexibility to transition to LTE as required. It can be operated over private or public 5G networks, using network slicing or in isolation.
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WSJ: 5G Expands to More-Affordable Phones as Chip Prices Fall
5G is increasingly available in cheaper phones, making faster mobile service affordable to more lower-income consumers around the world, market researchers say.
The key to this broader access to 5G service is the falling price of the specialized semiconductors needed for 5G phones, a trend that analysts expect to continue over the next two years. The lower price makes it economically feasible to put the chips in a wider range of phones.
Already, 5G technology has moved beyond the premium smartphone market, in which devices sell for $550 or more, to the midtier market where devices sell for $250 to $550, and even cheaper 5G phones are available in some places, says Jeff Fieldhack, research director at Counterpoint Research.
5G technology is “moving very quickly downwards in terms of affordability, faster than any previous generation,” says Frank Boulben, chief revenue officer of Verizon Communications Inc.’s Consumer Group. In Asia, prioritization of 5G chips by chip manufacturers in China and Taiwan is pushing chip prices lower and driving the production of budget 5G-capable devices, says Neil Shah, vice president of research at Counterpoint.
The average price of a so-called 5G system-on-a-chip that performs multiple functions is now $40 to $45, according to Counterpoint. That price could reach $20 late this year or early next year, at which point it would make economic sense for more mobile-phone makers to put 5G chips in devices with a retail price of around $150, says Mr. Fieldhack.
U.S. carrier Consumer Cellular Inc. expects to offer a 5G phone priced at $199 by June, and one priced at around $150 by early next year, according to Greg Hughes, the company’s vice president of portfolio strategy. Currently the company offers 5G-capable phones priced at $349 and higher. Mr. Hughes says he expects consumer adoption of 5G to increase when the technology is available in lower-priced smartphones.
Globally, 5G capability will spread to at least 80% of phones priced under $200 over the next two to three years, from less than 5% now, says Runar Bjørhovde, research analyst at market-research firm Canalys.
42% of smartphones shipped to retailers around the world in 2021 were 5G-capable, according to Counterpoint. That percentage is expected to increase to 54% this year and 66% next year, Counterpoint says. In the U.S., 58% of smartphones shipped to retailers were 5G-capable last year, and that percentage is expected to increase to 83% by the end of this year and to 89% by the end of 2023, Counterpoint says.
Lockdowns hurt MediaTek, Qualcomm:
Taiwanese smartphone IC designer MediaTek Inc and US rival Qualcomm Inc felt the sting of Chinas COVID-19 lockdowns as their smartphone IC shipments from in country fell in April, market advisory firm CINNO Research said.
Strict COVID-19 measures in major cities such as Shanghai, Kunshan and Suzhou dampened demand for smartphones in China, the firm said.
CINNO Research was founded by semiconductor and flat-panel experts from Taiwan and China.
Weaker demand for smartphones powered by the Android operating system also took a toll on IC shipments within China, CINNO said.
As a result, system on chips (SoC) used in smartphone production fell to about 17.60 million units in April, down 21.6 percent from a year earlier and down 12.1 percent from a month earlier, the firm said.
MediaTek outperformed the overall market and remained the largest smartphone IC provider in the Chinese market in April, but saw its smartphone SoC shipments fall 9 percent from a year earlier to about 7.3 million units, it said.
MediaTeks April shipments were also down 11.7 percent from March, it said.
Qualcomm, the second-largest smartphone IC vendor in China, took a bigger hit, with SoC shipments falling 22.5 percent from a year earlier and 14.4 percent from the previous month to 6.2 million units in April, CINNO said.
Apple Inc was more resilient, as its iPhone 13 series, powered by its iOS system, attracted solid buying in China in April.
It shipped about 3 million SoCs to China that month, down only 2.2 percent month-on-month and 3.5 percent year-on- year, it said.
MediaTek, Qualcomm and Apple had a combined share of 94.2 percent of Chinas smartphone chip market in April, up 1 percentage point from March and 9 percentage points from a year earlier.
China-based HiSilicon Technologies Co, a fabless semiconductor subsidiary of Chinese telecom equipment supplier Huawei Technologies Co, was fourth in April with shipments of 500,000 smartphone chips in China, down 34.3 percent from a month earlier and 83.1 percent from a year earlier, CINNO said.
Unisoc (Shanghai) Technologies Co was the fifth-largest smartphone IC supplier after shipping about 400,000 units, falling 12.2 percent from a month earlier, but soaring 606.5 percent from a year earlier, it said.
In addition to the COVID-19 pandemics effect on global demand, geopolitical tensions and a slowdown in the global economy are expected to continue to affect smartphone demand, CINNO said.
Smartphone brands in the Android camp are expected to be hurt more by weakening demand than Apple, it added.
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