Smartphones and tablets will be the key attraction in the consumer electronics market for 5G network. Asia Pacific is anticipated to be the largest market for 5G chipsets
The 5G chipset market is expected to grow from $12.8 billion in 2020 to $67.2 billion by 2027. This growth, as per a report by Research and Markets, represents a CAGR of 26.7 per cent.
“The major factors driving the growth of the 5G chipset market are the growing demand for high-speed internet and broad network coverage, increasing cellular IoT connections, and an increase in mobile data traffic. However, the high cost of the 5G chipset is expected to restrain the growth of the market,” read the report.
APAC to witness highest CAGR
APAC is witnessing dynamic changes in the adoption of new technologies and advancements in organizations across industries. 5G network would play an integral role in advanced technologies such as IoT and M2M communication and applications such as smart cities and industrial automation. 5G connectivity is suited to these areas, as it provides simultaneous connectivity for multiple devices and has low latency, which, in turn, improves the overall performance of the system. According to GSMA, 23 per cent of the total mobile connections in Asia Pacific will be running on 5G networks by 2025. With 5G already launched in 9 countries, with 12 others having plans to roll out in the near future, Asia Pacific is anticipated to be the largest market for 5G chipsets.
“In APAC, the investments look promising, as most countries such as China, Japan, and South Korea have successfully contained the virus compared with the US and European countries. China is easing the restrictions placed on factory lockdowns and worker movement. The major telecommunication equipment providers in the region, including ZTE and Huawei Technologies, have signed more than 95 5G commercial deals with global leading operators. Huawei has been providing support to launch 35 5G commercial networks by December 2020,” read the report.
10 to 28 nm to account for largest share of 5G chipset market
Advancements in the fabrication process are supporting the improvements in ICs, which has made electronic devices smaller and more power optimized. The 5G chipset market by process node has been segmented into less than 10 nm, 10-28 nm, and above 28 nm.
Some of the major process nodes on which 5G chipset components such as modems and RFICs are manufactured include 5 nm, 7 nm, 10 nm, 14 nm, 28 nm, 45 nm, 60 nm, and so on. 5G chipsets with process node between 10 and 28 nm mostly include baseband processors for 5G infrastructure and RFIC components.
Smartphones and tablets will be the key attraction in the consumer electronics market for 5G network. With the implementation of 5G network, customers can access and download data at high speed. In 5G smartphones, 5G-enabled ASICs are implemented. Increasing use of smartphones to drive the demand for 5G chipsets, however, chipset manufacturers are working on developing 5G chipsets for other mobile devices too.
