Strategy Analytics: 5G continues to grow rapidly despite component shortages

On June 2, according to the latest report released by market research firm Strategy Analytics, in 2020, despite the outbreak of the new coronavirus pandemic, the market for radio components for cellular user devices continued to grow and will continue to grow until 2025.

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According to report author Christopher Taylor, director of RF and Wireless Components, “Despite the pandemic, RF component revenues, including baseband processors and RF front ends (RFFE), reached an all-time high in 2020. We forecast the cellular radio component market to grow 8% annually through 2025. After device shipment growth stagnated, to help address the increasing radio complexity of 5G, RFFE component suppliers continue to develop packaged module systems with more functionality, allowing companies to capture more RFFE content in each design win while making it easier for OEMs to design and assemble mobile phones.”

Sravan Kundojjala, associate director of mobile component technology, added: "The ongoing semiconductor shortage is likely to continue until 2022, confirming the strong underlying demand. However, mobile phone manufacturers face supply constraints and may not be able to fully realize their mobile phone sales potential this year. Semiconductor foundries including TSMC, UMC, GlobalFoundries, SMIC, Samsung Foundry and Compound Semiconductor Foundry are all increasing production capacity as quickly as possible."

Strategy Analytics predicts that strong demand for sub-6 and mmWave 5G RF components, as well as new 5G opportunities beyond smartphones, will drive significant growth in cellular wireless components in the coming years.