5G Chipset Market 2030: The Future of Automotive Connectivity

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The global 5G chipset market was valued at USD 39.32 billion in 2023 and is expected to experience substantial growth, expanding at a compound annual growth rate (CAGR) of 20.7% from 2024 to 2030.

The global 5G chipset market was valued at USD 39.32 billion in 2023 and is expected to experience substantial growth, expanding at a compound annual growth rate (CAGR) of 20.7% from 2024 to 2030. Several key factors are driving this impressive growth. These include the increasing demand for broader network coverage and faster internet speeds, along with the growing use of Machine-to-Machine (M2M) communication technology. Additionally, the expanding integration of 5G networks in sectors such as smart cities, automotive applications, and healthcare is further boosting the demand for 5G chipsets. The rise in the number of connected devices - such as smartphones, tablets, and connected cars - is also playing a significant role in the market’s expansion.

One of the primary factors fueling the demand for 5G chipsets is the widespread adoption of 5G smartphones globally. According to the GSMA’s "The Mobile Economy 2023" report, the adoption of 5G technology is anticipated to accelerate due to the availability of more affordable 5G devices and the continued rollout of new 5G networks. As of January 2023, approximately 229 commercial 5G networks were operational worldwide, and over 700 models of 5G smartphones had been launched, with more than 200 new models introduced in 2022 alone. As the number of 5G smartphones launched globally continues to grow, the demand for 5G chipsets is expected to rise significantly between 2024 and 2030.

Gather more insights about the market drivers, restrains and growth of the 5G Chipset Market

Operating Frequency Segmentation Insights

In 2023, the Sub-6 GHz segment led the market. The growing adoption of Sub-6 GHz technologies, which provide extensive coverage in both urban and rural areas, is a key driver for this segment's dominance. These lower-frequency bands offer greater range and penetration compared to the higher mmWave bands, making them ideal for wide-area coverage. 5G chipsets designed for Sub-6 GHz frequencies are specifically built to support these lower frequencies used for 5G communication. These chipsets typically include a range of advanced features and technologies aimed at optimizing network performance and enhancing the user experience. Notably, support for Massive MIMO (Multiple-Input, Multiple-Output) antenna systems is a crucial feature, as it allows for the use of multiple antennas to improve both network capacity and performance.

Looking ahead, the 24-39 GHz segment is expected to experience significant growth from 2024 to 2030. This growth is primarily driven by the increasing adoption of Millimeter-Wave (mmWave) technology, which uses the 24-39 GHz frequency band to deliver ultra-high-speed 5G connections. mmWave technology is capable of supporting data transfer rates of several gigabits per second, which is vital for applications that require high data throughput, such as high-definition video streaming, augmented reality (AR), and virtual reality (VR). Furthermore, there is growing interest in integrating 5G modems and mmWave radio frequency (RF) components into single-chip solutions. This integration helps reduce power consumption and simplifies the design process for device manufacturers, contributing significantly to the growth of the 24-39 GHz segment.

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