A new market analysis highlights the explosive expansion anticipated in the global 5G Chipset Market. Valued at USD 43.23 billion in 2024, the market is estimated to reach USD 49.95 billion in 2025 and is projected to skyrocket to a remarkable USD 155.89 billion by 2032, exhibiting a robust Compound Annual Growth Rate (CAGR) of 17.65% during the forecast period. This significant growth is primarily driven by the accelerating global deployment of 5G networks, the escalating demand for 5G-enabled smartphones and other consumer electronics, and the increasing adoption of 5G in diverse industries for applications requiring high-speed, low-latency connectivity, such as IoT and industrial automation.

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Report Highlights

The comprehensive report analyzes the global 5G Chipset Market, segmenting it by Type (Modem Chips, Application-Specific Integrated Circuits (ASICs), Radio Frequency Integrated Circuits (RFICs), Millimeter Wave Technology Chips, Others), by Frequency (Sub-6 GHz, Between 26 & 39 GHz, Above 39 GHz), by Deployment (Telecom Base Station Equipment, Smartphones/Tablets, Connected Vehicles, Connected Devices, Broadband Access Gateway Devices, Others), by End-Use Industry (IT & Telecommunications, Manufacturing, Energy & Utilities, Media & Entertainment, Transportation & Logistics, Healthcare, Others), and Regional Analysis.

Key Market Drivers

  • Aggressive Global 5G Network Rollouts: The rapid and widespread deployment of 5G infrastructure by telecom operators across developed and emerging economies is the primary catalyst. As network coverage expands, the demand for compatible 5G chipsets for various devices and base station equipment surges.

  • Booming Demand for 5G-Enabled Smartphones and Consumer Electronics: The increasing consumer appetite for faster download speeds, seamless streaming, enhanced gaming, and immersive AR/VR experiences on mobile devices is driving mass adoption of 5G smartphones, directly fueling the demand for integrated 5G modem chips and RF components.

  • Proliferation of IoT and Connected Devices: The massive growth in the Internet of Things (IoT) ecosystem, encompassing smart home devices, wearables, industrial IoT, and smart city initiatives, heavily relies on 5G's low-latency and high-capacity capabilities. This widespread connectivity requires specialized 5G chipsets for efficient data transmission and processing.

  • Growth of Industry 4.0 and Enterprise 5G Adoption: Industries such as manufacturing, automotive, and logistics are increasingly leveraging 5G for applications like smart factories, autonomous vehicles, and real-time asset tracking. Private 5G networks and enterprise-specific solutions are driving demand for high-performance 5G chipsets tailored for industrial automation and mission-critical communications.

  • Advancements in Semiconductor Technology: Continuous innovation in semiconductor manufacturing, leading to more compact, energy-efficient, and powerful 5G chipsets (e.g., smaller process nodes like 7nm and 10nm), is enabling broader integration across devices and reducing overall power consumption, further accelerating market growth.

Key Market Trends

  • Modem Chips and SoCs with Integrated Modems to Dominate: System-on-Chip (SoC) designs that integrate modem, AI engines, and RF front-end are expected to continue holding a significant market share, driven by OEM demand for smaller footprints, lower power envelopes, and cost efficiency in smartphones and other integrated devices.

  • Sub-6 GHz Frequencies Leading Adoption, Millimeter Wave (mmWave) Gaining Traction: "Sub-6 GHz" frequencies are currently the most widely deployed due to their extensive coverage and penetration capabilities, making them suitable for broad 5G network rollouts. However, "Millimeter Wave Technology Chips" (operating in frequencies between 26 & 39 GHz and above 39 GHz) are projected to exhibit the fastest growth. As thermal envelopes improve in both smartphones and enterprise gateways, mmWave will be crucial for ultra-high-speed, high-capacity applications in dense urban areas and specific industrial use cases.

  • Smartphones/Tablets as the Largest Deployment Segment: The "Smartphones/Tablets" segment will continue to be the primary driver of the 5G chipset market due to massive consumer adoption. However, "Connected Vehicles" and "Connected Devices" are anticipated to witness the fastest growth, as 5G becomes integral to autonomous driving, telematics, and a wide array of IoT applications.

  • IT & Telecommunications and Consumer Electronics as Key End-Use Industries: The "IT & Telecommunications" sector, driven by investments in telecom base stations and network infrastructure, and "Consumer Electronics", primarily smartphones, are the leading end-use industries. The "Automotive & Transportation" sector is expected to show robust growth as 5G becomes critical for vehicle-to-everything (V2X) communication and advanced driver-assistance systems (ADAS).

  • Focus on Energy Efficiency and Thermal Management: As 5G chipsets enable more powerful and always-on connectivity, there is a strong emphasis on developing energy-efficient designs and effective thermal management solutions to extend battery life in mobile devices and ensure stable performance in infrastructure equipment.

  • Edge AI Integration: The trend of embedding AI capabilities directly into 5G chipsets is growing. This "edge AI" allows for faster data processing at the device level, reducing latency and reliance on cloud processing for real-time applications like AR/VR, smart cameras, and industrial automation.

  • Challenges of High Infrastructure Investment: The massive infrastructure upgrade required for widespread 5G deployment, including a denser network of base stations and small cells, represents a significant financial investment for telecom operators, which can impact the speed of chipset demand.