5G Chipset Market by IC Type (RFIC, ASIC, Cellular IC, mmWave IC), Operational Frequency (Sub-6 GHz, Between 26 & 39 GHz, Above 39 GHz), Product (Devices, CPE, Network Infrastructure Equipment), End-User Industry, and Geography - Global Forecast to 2026
[146 Pages Report] MarketsandMarkets forecasts the overall 5G chipset market to be valued at USD 2.03 billion in 2020 and is expected to reach USD 22.41 billion by 2026, at a CAGR of 49.2% between 2020 and 2026. Major drivers for the market are growing demand for high-speed internet and broad network coverage with reduced latency and power consumption, and increasing M2M/IoT connections.
By IC type, the ASIC segment is expected to grow at the highest growth rate during the forecast period
Demand for 5G-enabled smartphones and high chipset cost result in the largest share of ASIC in the 5G chipset market. Many companies are in the process of developing ASIC chipsets to emerge as early providers and showcase commercial readiness for 5G. In February 2017, Samsung Electronics (South Korea) launched RFIC and ASIC chipsets required for 5G modems. This would further help build 5G network infrastructure, and its related products include home routers and radio base station products.
By Operational frequency, the 5G chipset market for sub-6 GHz frequency band resonator holds the largest share of the market
To deliver widespread coverage and support multiple use cases, 5G devices operating in the sub-6 GHz spectrum band are likely to play an important role. Sub-1 GHz frequency will support 5G services in urban, suburban, and rural areas, and may find its role in IoT services. This spectrum is likely to help 5G services reach hard-to-reach and populated public areas. Spectrum from 1 to 6 GHz will be used for coverage and capacity applications of 5G. Many countries are exploring opportunities lying between 3.3 and 3.8 GHz frequency band for the initial launch of 5G services.
By geography, the market in Asia Pacific (APAC) is expected to gain highest growth
The growth of the 5G chipset market in APAC will mainly be driven by growing developments (such as R&D activities, investments, and partnerships among companies) related to 5G in countries such as Japan, China, South Korea, and India. Companies such as ZTE (China), Huawei (China), Ericsson (Sweden), and Nokia (Finland) are heavily investing in 5G and initiating field trials with some of the leading mobile service carriers, such as AT&T (US), China Mobile (China), SoftBank (Japan), and China Unicom (China). Leading players from different sections of the industry’s value chain are engaging in 5G network field tests and trials. For instance, in October 2017, ZTE (China) signed a memorandum of understanding (MoU) in 5G network and IoT with Bharat Sanchar Nigam Limited (BSNL, India), the largest Indian state-owned telecom company. Such developments in 5G network will create opportunities for the 5G chipset market to grow in APAC.
Market Dynamics
Driver: Increasing demand for mobile data services
The continuous development of cellular network has enabled users to experience fast data transfer rates with low latency. Demand for mobile data services is primarily driven by the growing use of services and applications in both consumer electronic devices and business-to-business (B2B) communication systems that are currently using/testing data-intensive applications such as virtual and augmented reality, and 3D and ultra-HD video content. To support the increasing data traffic, more bandwidth is required. It is expected that 5G would provide 1,000 times more bandwidth than its predecessor mobile broadband generations 4G and 3G. Therefore, the growing mobile data traffic would force network operators to provide more bandwidth to consumers; this factor is expected to propel the demand for 5G mobile broadband technology in the future.
Restraint: High hardware cost involved in terrestrial network densification
Continuous increase in data traffic within mobile broadband systems and growing demand for improved data rates from various end-use applications are expected to create a need for the densification of radio access networks or deployment of additional network nodes. To achieve network densification using small cells, a wide-scale deployment of fiber optic cable is required. This infrastructural upgrade is likely to be first rolled out in brownfield sites in the most densely populated locations, followed by greenfield deployment in new cell sites. Network densification in high-frequency 5G bands (mmWave) that are prone to signal loss is anticipated to play a major role. The deployment of additional optical fiber cables and small cells will draw huge investment for the successful rollout of 5G services. Software-defined network and network function virtualization—which promise to reduce the total capital expenditure involved in 5G—are still in the R&D phase. This factor is expected to have a high impact on 5G rollout in the coming years.
Opportunity: Integration of 5G services with satellite communication
The integration of satellite and terrestrial network infrastructure with 5G is expected to contribute immensely to the ubiquitous delivery of 5G services. The amalgamation of 5G with satellite communication system will facilitate streamlined communication in mission-critical and industrial applications, such as airplanes, high-speed rails, ships, and unserved/underserved locations where legacy cellular networks fail. The satellite industry had been dominated by government bodies and key communication service providers; however, the increasing participation of private players, such as Space X (US), Blue Origin (US), and Virgin Galactic (US), is likely to open opportunities for communication in the satellite industry. In October 2017, OneWeb (US) announced to launch 10 satellites in early-2018 to test the delivery of Wi-Fi, 2G, 3G, and 4G/LTE services.
Moreover, sharing C-band spectrum with the telecom industry is one of the emerging trends. In October 2017, Intelsat (US) and Intel (US) submitted a joint proposal to expand the use of 3,700–4,200 MHz spectrum from satellite services to terrestrial mobile services.
Challenge: Technological design challenges
5G network technology is in the nascent stage. Network and design engineers are trying to develop a network that can handle growing data traffic efficiently. While designing such network, research and design engineers face challenges such as heat dissipation in MIMO antenna and frequency interference in 5G network.
Scope of the Report
|
Report Metric |
Details |
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Market size available for years |
2016–2026 |
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Base year considered |
2017 |
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Forecast period |
2020–2026 |
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Forecast units |
Million and Billion (USD) |
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Segments covered |
IC type, Operational frequency, Product, End-user industry, and Region |
|
Geographies covered |
North America, Europe, APAC, Rest of the World (Middle East and Africa, and South America) |
|
Companies covered |
Qualcomm (US), Intel (US), Nokia (Finland), Samsung Electronics (South Korea), Xilinx (US), IBM (US), Qorvo (US), Infineon Technologies (Germany), Integrated Device Technology (US Anokiwave (US), Ericsson (Sweden), Hewlett Packard Enterprise (US), API Technologies Corp (US). |
The research report categorizes the 5G Chipset Market to forecast the revenues and analyze the trends in each of the following sub-segments:
5G Chipset Market, By IC Type
- Radio frequency integrated circuit (RFIC)
- Application-specific integrated circuit (ASIC)
- Cellular Integrated circuit (Cellular IC)
- Millimeter wave integrated circuit (mmwave IC)
5G Chipset Market, By End-User Industry
- Automotive & Transportation
- Energy & Utilities
- Healthcare
- Retail
- Building Automation
- Industrial Automation
- Consumer Electronics
- Public Safety & Surveillance
5G Chipset Market, By Product
- Devices
- Consumer Premises Equipment
- Network Infrastructure Equipment
5G Chipset Market, By Operational Frequency
- Sub-6 GHz
- Between 26 and 39 GHz
- Above 39 GHz
5G Chipset Market, By Region
- North America
- Europe
- Asia Pacific (APAC)
- ROW
Key Market Players
Qualcomm (US), Intel (US), Nokia (Finland), Samsung Electronics (South Korea), Xilinx (US), IBM (US), Qorvo (US), Infineon Technologies (Germany), Integrated Device Technology (US Anokiwave (US), Ericsson (Sweden), Hewlett Packard Enterprise (US), API Technologies Corp (US).
Qualcomm holds the first position in the 5G chipset market based on its product offering, R&D activity, and market strategy over the past 2 years. Qualcomm has strong expertise in 3G, 4G, and Wi-Fi, which has helped the company develop chipsets for 5G. Qualcomm has been a leader in the mobile processor market and is likely to dominate the 5G market as well in the future. Qualcomm has also collaborated with industry leaders to drive and implement 3GPP 5G New Radio (NR) standardizations along with field trials. The latest development of X50 modem, along with partnership with leading carrier providers and OEMs, is expected to result in the strong market position of Qualcomm in the near term.
Recent Developments
In January 2018, Intel, Deutsche Telecom (Germany), and Huawei (China) conducted the world’s first over-the-air test showcasing 5G interoperability and development testing (IODT) based on the Release 15 NSA 5G NR specification. The test was based on Huawei’s 5G commercial base station and Intel’s third-generation 5G NR Mobile Trial Platform.
In January 2018, Nokia unveiled ReefShark chipsets, which reduce the size, cost, and power consumption of operators’ networks and meet the massive compute and radio requirements of 5G. ReefShark chipsets for radio frequency (RF) units such as the radio used in antennas significantly improve their performance. This results in halving the size of massive MIMO antennas. ReefShark chipsets also reduce power consumption in baseband units by 64%, compared to such units in use today.
In November 2017, Anokiwave announced the expansion of its family of mmWave 5G ICs with the release of AWMF-0135, a 24.25–27.5 GHz silicon active antenna quad-core IC, for the 5G communications markets. AWMF-0135 supports 4 radiating elements and includes 5-bit phase and gain control for analog RF beam steering.
Critical questions the report answers:
- Where will all these developments take the industry in the long term?
- What are the upcoming trends for the 5G Chipset Market market?
- Which segment provides the most opportunity for growth?
- Who are the leading vendors operating in this market?
- What are the opportunities for new market entrants?
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
Table of Contents
1 Introduction (Page No. - 15)
1.1 Study Objectives
1.2 Definition
1.3 Study Scope
1.3.1 Markets Covered
1.3.2 Years Considered for This Study
1.4 Currency
1.5 Package Size
1.6 Limitations
1.7 Stakeholders
2 Research Methodology (Page No. - 18)
2.1 Research Data
2.1.1 Secondary Data
2.1.1.1 Major Secondary Sources
2.1.1.2 Secondary Sources
2.1.2 Primary Data
2.1.2.1 Primary Interviews With Experts
2.1.2.2 Primary Sources
2.1.2.3 Breakdown of Primaries
2.1.2.4 Key Industry Insights
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.2 Top-Down Approach
2.3 Market Breakdown and Data Triangulation
2.4 Assumptions
3 Executive Summary (Page No. - 28)
4 Premium Insights (Page No. - 34)
4.1 Attractive Opportunities for 5G Chipset Market Growth
4.2 Market, By IC Type
4.3 Market, By Operational Frequency
4.4 Market in APAC, By IC Type and Country
4.5 Market, By Country
5 Market Overview (Page No. - 38)
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Growing Demand for High-Speed Internet and Broad Network Coverage With Reduced Latency and Power Consumption
5.2.1.2 Increasing M2m/Iot Connections
5.2.1.3 Increasing Demand for Mobile Data Services
5.2.2 Restraints
5.2.2.1 High Hardware Cost Involved in Terrestrial Network Densification
5.2.2.2 Fragmented Spectrum Allocation
5.2.3 Opportunities
5.2.3.1 Integration of 5G Services With Satellite Communication
5.2.3.2 Strategic Partnerships With System Integrators in Emerging Economies
5.2.4 Challenges
5.2.4.1 Technological Design Challenges
5.2.4.1.1 Power Dissipation in Massive Mimo Antenna
5.2.4.1.2 Inter-Cell Interference
5.3 Case Studies
5.3.1 Nokia, Deutsche Telekom, and Hamburg Port Authority Collaborated for 5G Research in Industrial Applications
5.3.2 Verizon, Korea Telecom, and Samsung Demonstrated 5G at Super Bowl in Minneapolis, Us
5.3.3 5G at Winter Olympics in Pyeongchang, South Korea
5.3.4 Ericsson (Sweden) Tested 5G Infrastructure for Connected Car Application
5.3.5 Implementation of 5G Infrastructure By Intel and Ericsson in Commercial Cruise in Europe
6 5G Chipset Market, By IC Type (Page No. - 46)
6.1 Introduction
6.2 Radio Frequency Integrated Circuit (RFIC)
6.3 Application-Specific Integrated Circuit (ASIC)
6.4 Cellular Integrated Circuit (Cellular IC)
6.5 Millimeter Wave Integrated Circuit (mmWave IC)
7 5G Chipset Market, By Operational Frequency (Page No. - 55)
7.1 Introduction
7.2 Sub-6 gHz
7.3 Between 26 and 39 gHz
7.4 Above 39 gHz
8 5G Chipset Market, By Product (Page No. - 59)
8.1 Introduction
8.2 Devices
8.3 Customer Premises Equipment (CPE)
8.4 Network Infrastructure Equipment
9 5G Chipset Market, By End-User Industry (Page No. - 68)
9.1 Introduction
9.2 Automotive & Transportation
9.3 Energy & Utilities
9.4 Healthcare
9.5 Retail
9.6 Building Automation
9.7 Industrial Automation
9.8 Consumer Electronics
9.9 Public Safety & Surveillance
10 5G Chipset Market, Geographic Analysis (Page No. - 76)
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 UK
10.3.2 Germany
10.3.3 Sweden
10.3.4 France
10.3.5 Finland
10.3.6 Rest of Europe
10.4 APAC
10.4.1 China
10.4.2 Japan
10.4.3 South Korea
10.4.4 India
10.4.5 Rest of APAC
10.5 RoW
10.5.1 Middle East & Africa
10.5.2 South America
11 Competitive Landscape (Page No. - 95)
11.1 Overview
11.2 Market Player Ranking (2017–2018)
11.3 Competitive Scenario
11.3.1 Product Launches and Developments
11.3.2 Partnerships and Collaborations
11.3.3 Others
12 Company Profiles (Page No. - 102)
(Business Overview, Products Offered, Recent Developments, SWOT Analysis, and MnM View)*
12.1 Key Players
12.1.1 Qualcomm Technologies
12.1.2 Intel
12.1.3 Nokia
12.1.4 Samsung Electronics
12.1.5 Xilinx
12.1.6 IBM
12.1.7 Qorvo
12.1.8 Infineon Technologies
12.1.9 Integrated Device Technology
12.1.10 Anokiwave
12.2 Other Chipset Players
12.2.1 Analog Devices
12.2.2 Broadcom
12.2.3 Huawei Technologies
12.2.4 Macom Technology Solutions
12.2.5 Cavium
12.3 Other Companies in 5G Ecosystem
12.3.1 Ericsson
12.3.2 Fujitsu
12.3.3 ZTE Corporation
12.3.4 Hewlett Packard Enterprise
12.3.5 Korea Telecom
*Details on Business Overview, Products Offered, Recent Developments, SWOT Analysis, and MnM View Might Not Be Captured in Case of Unlisted Companies.
13 Appendix (Page No. - 136)
13.1 Insights From Industry Experts
13.2 Discussion Guide
13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
13.4 Introducing RT: Real-Time Market Intelligence
13.5 Available Customizations
13.6 Related Reports
13.7 Author Details
List of Tables (43 Tables)
Table 1 5G Spectrum in Major Countries/Regions
Table 2 5G Chipset Market, By IC Type, 2020–2026 (USD Million)
Table 3 Market, By IC Type, 2020–2026 (Million Units)
Table 4 Market for RFIC, By Product, 2020–2026 (USD Million)
Table 5 Market for RFIC, By Product, 2020–2026 (Million Units)
Table 6 Market for RFIC, By Region, 2020–2026 (USD Million)
Table 7 Market for ASIC, By Product, 2020–2026 (USD Million)
Table 8 Market for ASIC, By Product, 2020–2026 (Million Units)
Table 9 Chipset Market for ASIC, By Region, 2020–2026 (USD Million)
Table 10 Market for Cellular IC, By Product, 2020–2026 (USD Million)
Table 11 Market for Cellular IC, By Product, 2020–2026 (Million Units)
Table 12 Market for Cellular IC, By Region, 2020–2026 (USD Million)
Table 13 Market for mmWave IC in Network Infrastructure Equipment, 2020–2026
Table 14 Market for mmWave IC, By Region, 2020–2026 (USD Million)
Table 15 Market, By Operational Frequency, 2020–2026 (USD Million)
Table 16 Market, By Product, 2020–2026 (USD Million)
Table 17 Market for Devices, By Type, 2020–2026 (USD Million)
Table 18 Market for Devices, By IC Type, 2020–2026 (USD Million)
Table 19 Market for CPE, By Type, 2020–2026 (USD Million)
Table 20 Market for CPE, By IC Type, 2020–2026 (USD Million)
Table 21 Market for CPE, By End-User Industry, 2020–2026 (USD Million)
Table 22 Market for Network Infrastructure Equipment, By Type, 2020–2026 (USD Million)
Table 23 Market for Network Infrastructure Equipment, By IC Type, 2020–2026 (USD Million)
Table 24 Market for Network Infrastructure Equipment, By End-User Industry, 2020–2026 (USD Million)
Table 25 Market, By End-User Industry, 2020–2026 (USD Million)
Table 26 Market for Automotive & Transportation, By Product, 2020–2026 (USD Million)
Table 27 Market for Energy & Utilities, By Product, 2020–2026 (USD Million)
Table 28 Market for Healthcare, By Product, 2020–2026 (USD Million)
Table 29 Market for Retail, By Product, 2020–2026 (USD Million)
Table 30 Market for Building Automation, By Product, 2020–2026 (USD Million)
Table 31 Market for Industrial Automation, By Product, 2020–2026 (USD Million)
Table 32 Market for Consumer Electronics, By Product, 2020–2026 (USD Million)
Table 33 Market for Public Safety & Surveillance, By Product, 2020–2026 (USD Million)
Table 34 Market, By Region, 2020–2026 (USD Million)
Table 35 Market in North America, By IC Type, 2020–2026 (USD Million)
Table 36 Market in North America, By Country, 2020–2026 (USD Million)
Table 37 Market in Europe, By IC Type, 2020–2026 (USD Million)
Table 38 Market in Europe, By Country, 2020–2026 (USD Million)
Table 39 Market in APAC, By IC Type, 2020–2026 (USD Million)
Table 40 Market in APAC, By Country, 2020–2026 (USD Million)
Table 41 Market in RoW, By IC Type, 2020–2026 (USD Million)
Table 42 Market in RoW, By Region, 2020–2026 (USD Million)
Table 43 Ranking of Key Companies in Market (2017–2018)
List of Figures (39 Figures)
Figure 1 Research Design
Figure 2 Bottom-Up Approach
Figure 3 Top-Down Approach
Figure 4 Data Triangulation
Figure 5 5G Chipset Market, By IC Type, 2020 vs 2026 (USD Million)
Figure 6 5G Chipset Market, By Operational Frequency, 2020 vs 2026 (USD Million)
Figure 7 Market, By Product, 2020–2026 (USD Million)
Figure 8 Market, By End-User Industry, 2020 (USD Million)
Figure 9 Market, By Geography, 2020
Figure 10 Demand for High-Speed Internet Services to Drive the Market Between 2020 and 2026
Figure 11 ASIC to Hold Largest Share of Market During Forecast Period
Figure 12 Sub-6 gHz to Hold Largest Size (USD Million) of Market Between 2020 and 2026
Figure 13 China Expected to Hold Largest Share of Market in APAC in 2020
Figure 14 US to Hold Largest Share of Market in 2020
Figure 15 Growing Demand for High-Speed Internet With Low Latency Driving Market Growth
Figure 16 ASIC Expected to Account for Largest Size of Market By 2026
Figure 17 North America to Hold Largest Share of Market for ASIC During Forecast Period
Figure 18 Market for Frequency Band Between 26 and 39 gHz to Witness Highest Growth From 2020 to 2026
Figure 19 Devices to Account for Largest Market Size (USD Million) Owing to Growth of Smartphones
Figure 20 Small Cell to Account for Largest Market Size By 2026
Figure 21 Rapidly Growing Markets Such as South Korea, Japan, and India Emerging as New Hot Spots in 5G Chipset Market
Figure 22 Market Snapshot: North America
Figure 23 Market in Canada to Grow at Highest CAGR During Forecast Period
Figure 24 Market Snapshot: Europe
Figure 25 UK to Account for Largest Share of Market in 2020 and 2026
Figure 26 Market Snapshot: APAC
Figure 27 China Estimated to Hold Largest Share of Market in 2020
Figure 28 5G Chipsets Market Snapshot: RoW
Figure 29 Key Growth Strategies Adopted By Top Players in Market Between 2015 and 2018
Figure 30 Product Launches – Key Strategy Adopted By Players Between 2015 and 2018
Figure 31 Qualcomm Technologies: Company Snapshot
Figure 32 Intel: Company Snapshot
Figure 33 Nokia: Company Snapshot
Figure 34 Samsung Electronics: Company Snapshot
Figure 35 Xilinx: Company Snapshot
Figure 36 IBM: Company Snapshot
Figure 37 Qorvo: Company Snapshot
Figure 38 Infineon Technologies: Company Snapshot
Figure 39 Integrated Device Technology: Company Snapshot
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