5G chipset manufacturers can expect robust growth in the next five years spurred by the wide adoption of connected devices and sensor technologies.
According to the latest report by Frost & Sullivan entitled “Growth Opportunities in the Global 5G Chipset (ICs) and Devices Market, Forecast to 2025”, 5G chipset suppliers will leverage growth from verticals such as automotive, healthcare, industrial IoT and retail to grow the market to US$27.8 billion in 2025 at a CAGR of nearly 60%. Currently, the 5G chipset market recorded a total revenue of US$1.6 billion in 2019.
According to market research firm, smartphones are a major revenue contributor for 5G chipsets, accounting for a 35.4% share of the total 5G chipset market in 2019, with an estimated revenue of US$595 million. The vertical is expected to grow significantly toward the end of 2020 and early 2021. Revenues from 5G smartphones have been forecast to reach $18.6 billion by 2025, growing at a CAGR of 77.5% from 2019.
"5G smartphone shipments are expected to begin with high-end devices, as announced by leading OEMs. However, volume shipments will gain momentum only from 2021, when mid- and low-end smartphones enter the market," said Prabhu Karunakaran, industry analyst at Frost & Sullivan.
He pointed out that 5G chipset growth will be driven by smartphones and network infrastructure in the first wave of commercialisation.
“However, the market's future growth will expand beyond the traditional markets, as the successful trials in retail, industrial and automotive verticals suggest,” said Karunakaran.
Frost & Sullivan's latest research aims to uncover the potential of 5G-enabling chipsets by providing a thorough understanding of the 5G chipset market.
The research analyses all related market verticals and provides detailed shipment and revenue forecasts through the year 2025 for every segment. The report also identifies the key growth opportunities in the segment and provides strategic recommendations to leverage them.
5G chipset and device manufacturers can also explore the opportunities in:
- Providing a cost-effective solution for the deployment of a high-speed, low-latency network for industrial use.
- Developing automotive-grade reliable devices and networks for autonomous vehicles.
- Focusing on cost-optimized solutions that can process large volumes of data and communicate quickly.
- Improving the AI and ML capabilities in system on chip (SoC) applications.
- Developing power-efficient devices to enable high-volume data processing in real time.