The global 5G chipset market is estimated to account to US$ 1.03 Bn in 2019 and is expected to grow at a CAGR of 41.0% during the forecast period 2020 - 2027, to account to US$ 22.86 Bn by 2027.
The global 5G chipset market is experiencing steady growth in the forecast period. The semiconductor industry rapidly growing owing to the surge in demand in range of industries such as automobile, industrial manufacturing, defense, and consumer electronics including others. The production of smartphones, PC, and several computing devices demand for advanced semiconductor technologies including 5G chipset. The increasing number of partnerships among automotive and chipset manufactruers are positively impacting on the growth of 5G chipset market. For instance, in 2018, HCL Technologies signed a partnership with Broadcom Inc. According to the partnership Broadcom's services will transaction to HCL and Broadcom customers would have access to HCL Tech's technological expertise. Thus, it impact the growth of 5G chipset market in the current scenario.
A key trend that will prominently affect the 5G chipset market in the coming years is the emergence of industrial and residential use cases in the forecast period. This factor is expected to boost the 5G chipset market. The networks have evolved to handle use cases with different demands on data rates,mobility, scalability, latency, security, integrity, availability, and reliability. Such demands can be met with the help of distributed cloud architecture, which allows the applications to be deployed at a central, distributed and edge sites, to meet specific use case requirements. In comparison to what is possible from central sites, providing services closer to the user reduces the network transport delay and enables faster time to content, actions and control. These factors are projected to gain traction in the coming times having a significant impact approaching the 5G chipset market.
5G Chipset market by end user is segmented into automotive & transportation, energy & utilities, healthcare, retail, building automation, industrial automation, consumer electronics, and public safety & surveillance. Consumer electronics holds a highest market share in the 5G chipset market. Many companies, such as Broadcom has completed its product portfolio of 5G switching. The company developed this portfolio to facilitate deployment of the end-to-end networks which consolidates radio and fixed-line traffic onto a standard. The devices equipped in 5G switching helps to fulfill the performance demands of a new Ethernet-based 5G New Radios (NR) and base stations.. These factors are expected to drive the commercialization of 5G in the coming years.
The overall 5G chipset market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the 5G chipset market. Also, multiple primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the 5G chipset industry.