The smartphone and IoT connected devices sector has evolved over the years to a great extent and is creating ripples across the large consumer base with novel technological advancements seeping in. Internet connectivity forms a great part of generating good revenue for any player in the smartphone industry. Therefore, for extensive internet connectivity, various technologies are used that further have a positive impact on smartphone sales.
The 5G technology is seen as a boon for the growth of this massive smartphone and IoT connected devices industry. Faster speed, good bandwidth, and reduced latency are some of the features that 5G technology offers. For the smooth integration of 5G technologies with these devices, 5G chipset is of great importance. Therefore, the global 5G chipset market may witness overwhelming growth during the assessment period of 2019-2026.
According to Transparency Market Research (TMR), the global 5G chipset market is expected to expand at a CAGR of 44.01 percent through the forecast period of 2019-2026. The 5G chipset market is also expected to attain a valuation of US$ 20,195.8 mn by 2026.
Numerous vendors are in the fray for developing state-of-the-art 5G chipsets due to the growing influence of technology across the telecommunication industry. 5G chipsets are used in a plethora of end-uses such as media and entertainment, consumer electronics, energy and utilities, automotive and transportation, healthcare, and others.
Escalating Demand for Strong Network Infrastructure Boosting Growth Prospects
The advent and magnification of the Internet of Things (IoT) and other similar connected technologies have led to massive data consumption. Connected devices are also catering to an enormous consumer base, thereby inviting expansive growth opportunities for the 5G chipset market. The data consumption rate is prophesied to increase tenfold in the coming years according to various studies and surveys and this will give a Midas touch to the growth of the 5G chipset market.
Mid-Range Smartphones to Push Growth for 5G Chipsets
Mid-range smartphones may bring immense growth prospects for the 5G chipset market. Companies in the 5G chipset market are exploring opportunities in the cheap and mid-range smartphones. This segment is a hit in densely populated countries like China and India. Players are launching 5G chipsets for these smartphones. For instance, MediaTek launched Dimensity 800U that enables 5G capabilities for mid-range smartphones. Similar developments may help the 5G chipset market to garner growth.
Large-Scale 5G Deployment to Lay Red Carpet of Growth
5G-deployed cities may serve as a prominent growth contributor for the 5G chipset market. For instance, Shenzhen became the 1st Chinese city that deployed full-scale 5G technology around the city. The city has installed over 46000 5G base stations and the mayor of the city also quoted that the number of 5G base stations in the city alone puts it in tandem with the number of 5G installation bases in entire Europe. Similar cities may bring exponential growth for the 5G chipset market.
Political Tensions between Certain Countries Hindering Growth of 5G Chipset Market
The changing political dynamics between some countries may dampen the growth of the 5G chipset market. The tussle between China and the U.S. is a recent instance. The U.S. government recently announced fresh sanctions that will ban any foreign semiconductor company from selling chips developed by using U.S. software to Huawei without obtaining a license from the government.
Qualcomm is in the process of convincing the US government for allowing selling 5G chipsets to Huawei. Qualcomm and Huawei had recently forged a long-term global patent license agreement. The U.S. government is trying to keep Huawei at bay out of next-generation networks citing national security concerns. Such aspects prove to be growth obstacles for the 5G chipset market.
Get More Research Insights about 5G Chipset Industry by TMR