5G Chipset Market Size, Trends and Growth Analysis by 2027

The worldwide market for 5G chipsets was valued at approximately US$ 1.03 billion in 2019 and is projected to expand at a compound annual growth rate (CAGR) of 41.0% from 2020 to 2027, ultimately reaching around US$ 22.86 billion by the end of the forecast period.

During this forecast period, the global 5G chipset market is witnessing consistent growth. The semiconductor sector is rapidly advancing, driven by increasing demand across various industries, including automotive, industrial manufacturing, defense, and consumer electronics, among others. The production of smartphones, personal computers, and various computing devices necessitates the use of advanced semiconductor technologies, particularly 5G chipsets. Furthermore, the rising number of collaborations between automotive companies and chipset manufacturers is favorably influencing the expansion of the 5G chipset market. For example, in 2018, HCL Technologies entered into a partnership with Broadcom Inc. Under this agreement, Broadcom's services would be transitioned to HCL, allowing Broadcom's customers to benefit from HCL Tech's technological expertise. This collaboration is expected to positively impact the growth trajectory of the 5G chipset market in the current landscape.

A significant trend anticipated to shape the 5G chipset market in the near future is the rise of both industrial and residential applications during the forecast period. This development is expected to further stimulate the 5G chipset market. Networks have evolved to accommodate various use cases that impose distinct requirements regarding data rates, mobility, scalability, latency, security, integrity, availability, and reliability. These diverse demands can be effectively addressed through distributed cloud architecture, which enables applications to be deployed at central, distributed, and edge locations, tailored to meet specific use case needs. By providing services closer to end-users, this approach minimizes network transport delays and facilitates quicker access to content, actions, and controls. These elements are projected to gain momentum in the coming years, significantly influencing the 5G chipset market.

The 5G chipset market is categorized by end-user segments, which include automotive and transportation, energy and utilities, healthcare, retail, building automation, industrial automation, consumer electronics, and public safety and surveillance. Among these segments, consumer electronics holds the largest market share within the 5G chipset sector. Numerous companies, such as Broadcom, have enhanced their product offerings in 5G switching. This development aims to support the deployment of comprehensive networks that integrate both radio and fixed-line traffic onto a unified standard. Devices incorporated in 5G switching are designed to meet the performance requirements of new Ethernet-based 5G New Radios (NR) and base stations. These advancements are expected to propel the commercialization of 5G technology in the forthcoming years.

The overall size of the 5G chipset market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the 5G chipset market. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the data and analysis. Participants in this process typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the 5G chipset sector.