The report predicts that the 5G chipset market will reach US$22.929 billion in 2026

According to the latest report from Valuates Reports, the global 5G chipset market size is expected to reach US$2.12 billion in 2020 and US$22.929 billion by 2026, with a compound annual growth rate of 48.7% from 2020 to 2026.

The report pointed out that Asia Pacific is expected to be the largest contributor to the global market, reaching US$752.6 million in 2020 and is expected to reach US$8.713 billion by 2026, with a compound annual growth rate of 50.5% during the forecast period.

The growing demand for mobile data services is expected to increase the growth of the 5G chipset market size. The demand for mobile data services is primarily driven by the growing consumer electronic devices and business-to-business (B2B) communication systems. As a result, the increase in mobile data traffic will push network providers to offer more bandwidth to consumers; this aspect is expected to drive the demand for 5G mobile broadband technology in the future.

The Internet of Things continues to grow globally as smart cities, smart infrastructure, and smart grid initiatives are being rolled out around the world. Some manufacturing companies have begun deploying IoT devices to track machine output in real time to minimize downtime and improve operational efficiency. The growth in demand for IoT devices is expected to drive the growth of the 5G chipset market size.

Although the COVID-19 pandemic has reduced the penetration of 5G services around the world, it has had minimal impact on the 5G chipset market as it is an evolving technology and only a few industries use 5G-enabled network services. In addition, the pandemic has caused several industries to completely shift their operations to remote servers, requiring high-speed data links and lower latency. This is expected to boost the 5G chipset market size during the forecast period.

Looking at the development of mobile communication technology, each iteration and upgrade has brought changes and opportunities to the industry landscape, and the arrival of the 5G era will bring new opportunities for the growth of the chip industry.