According to a recent study done by FMI, the 5G chipset market is expected to reach US$ 180 Billion by 2032, up from US$ 21 Billion in 2022, expanding at a high CAGR of 25.5%. This study explains that the rising demand for high-speed internet and large network coverage for several applications, such as distance learning, autonomous driving, multiuser gaming, videoconferencing, live streaming, telemedicine, and augmented reality, is expected to propel the growth of the 5G chipset market.
The speed and reliability of 5G are expected to have a massive impact on machine-to-machine (M2M) and IoT. Key reasons for the increased adoption of new M2M technologies are better connectivity for smooth communication and low power requirement. The existing capacity of mobile networks must be able to handle billions of nodes that are expected to ascend in the next couple of years to achieve effective M2M communication.
Currently, the network capacity is incapable of handling M2M and human-based communications, as well as their different communication patterns such as latency time. For this reason, a next-level cellular network for mobile communication, featuring hyper-connectivity and larger bandwidth, is required (e.g., 5G network).
M2M communication technology will be widely used in heavy manufacturing industries and process industries (e.g., food industries) to increase the efficiency of different processes and reduce human interference with machines. M2M communication is thus expected to drive the 5G chipset market.
Rising demand for High-Speed Internet and Large Network CoverageRising demand for high-speed internet and large network coverage for several applications, such as distance learning, autonomous driving, multiuser gaming, videoconferencing, live streaming, telemedicine, and augmented reality, is expected to propel the growth of the 5G chipset market.Increasing demand for mobile broadband technology, high-speed data transfer, and data and information processing are driving the growth of 5G cellular technology. Also, it is likely to enhance mobile network performance capabilities and reduce the gap between poor to minimal network coverage and data connectivity that persists in current network generations (3G/4G).
Key Challenges And Restraints Affecting The 5G Chipset Market GrowthHigh cost of 5G chipset for Mobile DevicesPrices of smartphone chipsets that support 5G are likely to be more expensive than the 4G ones available currently. First-generation 5G chipsets were limited to premium smartphones from 2019.Volume deployment of 5G devices based on second-generation chipsets is being seen in 2020, and third-generation chipsets will enable performance-optimized 5G devices in 2021. Qualcomm offers 5G support to its flagship Snapdragon 8-series SoC only, and a limited number of premium smartphones use it.The company has planned to significantly expand the 5G lineup by offering 5G the company’s 7-series and 6-series lineups. Snapdragon 765 and Snapdragon 690 are already available for mid-range smartphones. However, the company has not revealed any plans for 4-series chipset that are used in cheaper phones.The addition of 5G to cheaper phones would give the network technology a much broader audience. Qualcomm and MediaTek are expected to lower the prices of 5G chipsets for mid-range smartphones.
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