Report: By 2027, the 5G chip market will be worth $23.5 billion

According to foreign media reports, according to the latest report released by market research firm Meticulous Research, the 5G chip market will have an annual compound growth rate of 52.7% from 2020 to 2027, reaching US$23.5 billion by 2027.

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Based on application, the smart city segment is expected to account for the largest share of the overall 5G chipset market in 2020. 5G chipsets are used to address key issues and needs of smart cities such as infrastructure and real estate management, fast access to services, efficient transportation and logistics, public safety and surveillance, efficient public facilities management, smart mobility, environment and pollution monitoring, and smart lighting solutions.

Based on chipset type, the application specific integrated circuit segment is expected to account for the largest share of the overall 5G chipset market in 2020. The large share of this segment is primarily due to its low manufacturing cost due to high volume production, higher efficiency, better performance than other integrated circuits, and increased adoption by cellular network providers to save costs.

Based on frequency, the sub-6 GHz segment will account for the largest share of the overall 5G chipset market by 2020. However, the above-mentioned 24 GHz frequency band is expected to grow at the highest CAGR during the forecast period. The reasons for the growth of this segment include its ability to support large bandwidth and high-speed data transmission.

Although the COVID-19 pandemic has slowed down the adoption of 5G services around the world, its impact on 5G is minimal as it is an emerging technology and only a few industries use 5G-enabled network services. In addition, the pandemic has caused various industries to completely shift their operations to remote servers, which requires high-speed data connections and low latency. This is expected to expand the demand for 5G chipsets during the forecast period.

With the gradual popularization of 5G networks, more diverse and richer 5G scenario-based applications will usher in an explosion. The rapid development of smartphone technology and the surge in IoT devices will both boost the growth of the 5G chip market.