The 5G chipsets market is anticipated to exceed $132 billion by 2032, according to a recent report by Global Market Insights Inc. This growth is largely driven by the increasing use of connected devices and Internet of Things (IoT) applications worldwide. As of 2024, there are over 15 billion IoT devices globally, according to data from Exploding Topics. The rising number of these connected devices, ranging from smart home appliances to industrial sensors, necessitates high-speed, reliable, and low-latency communication networks. 5G technology, with its enhanced bandwidth and reduced latency, meets these needs by supporting seamless connectivity and real-time data exchange, thereby boosting the performance of these devices.
Rapid growth expected in RF transceivers segment
The RF transceivers segment is expected to see significant growth through 2032, as these components are crucial for the effective operation of 5G networks. Manufacturers are focusing on developing advanced RF transceivers that provide better performance, energy efficiency, and are more compact. These advancements are not only increasing the adoption of 5G technology in consumer electronics like smartphones but are also expanding its use in various industrial sectors.
Connected vehicles to drive market expansion
The market share for 5G chipsets in connected vehicles is projected to grow steadily through 2032. This growth is fueled by substantial investments from automakers and tech companies in developing and deploying 5G-enabled vehicles. Integrating 5G chipsets into vehicles enhances the driving experience by enabling more connectivity and automation, which improves safety, efficiency, and convenience. Additionally, the increasing shift towards electric vehicles and the development of smart cities are further boosting the demand for 5G-enabled vehicles. As the automotive industry continues to innovate with 5G technology, wider adoption of 5G chipsets is expected.
Europe poised to become a leading market
The 5G chipsets market in Europe is set for substantial growth between 2024 and 2032, driven by the region’s strong emphasis on digital transformation and the widespread rollout of 5G technology across various sectors. Europe has been leading the charge in deploying 5G networks, with significant investments in infrastructure to support this technology. The European Union’s focus on promoting innovation and digitalization has accelerated 5G adoption. Additionally, as European car manufacturers increasingly integrate 5G technology into their vehicles to support connected and autonomous driving, the regional market is expected to strengthen further.
Key players in the 5G chipsets market
The 5G chipsets industry features several major companies, including Qualcomm Technologies, MediaTek, Huawei Technologies, Samsung Electronics, Intel, Broadcom, Nokia, Ericsson, Marvell Technology Group, and Infineon Technologies AG. These companies are focusing on partnerships and collaborations to enhance their technological capabilities and expand their market presence. They are heavily investing in research and development to innovate and improve 5G chipset performance, ensuring compatibility with emerging applications such as connected vehicles and IoT devices. Additionally, these companies are increasing their production capacities and optimizing supply chain efficiencies to meet the growing global demand for 5G technology. They are also targeting new markets in regions like Europe and Asia-Pacific to capitalize on the widespread adoption of 5G networks.
