The 5G chipset market is poised for exponential growth, due to rising smartphone penetration, accelerated 5G network rollouts, and industrial IoT adoption are driving demand for high-performance chipsets capable of ultra-low-latency and high-throughput communication across consumer and enterprise applications.
Chicago, Jan. 21, 2026 (GLOBE NEWSWIRE) — The global 5G chipset market was valued at 48.17 billion in 2024 and is expected to reach US$ 248.56 billion by 2033, growing at a CAGR of 18.01% from 2025 to 2033.
The 5G chipset market is witnessing strong growth, underpinned by accelerating 5G network rollouts, IoT adoption, and the demand for high-speed connectivity across industries. More than 60% of telecom operators globally have transitioned to 5G Standalone (SA) architecture as of Q2 2024, requiring advanced chipsets to support network slicing and ultra-reliable low-latency communication (URLLC). Shipments of 5G chipsets exceeded 900 million units in the first half of 2024.
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This is propelled by growing penetration in smartphones, which account for 52% of total demand. Beyond consumer electronics, sectors like industrial automation and healthcare are emerging as critical demand drivers. For instance, Siemens reported a 35% surge in private 5G deployments for smart factories in 2024, leveraging chipsets for real-time machine control, while remote surgery platforms like Proximie rely on 5G’s <10ms latency allowed by Qualcomm’s X75 modems.
Fixed Wireless Access Routers Gain Ground, Driving 18% of 5G Chipset Demand
Smartphones dominate the 5G chipset market with 68% of devices shipped in Q1 2024 supporting 5G, up from 54% in 2023. This surge is boosted by competitive pricing in mid-tier devices (e.g., Nothing Phone 2a) and advanced features like on-device AI in flagship models such as Samsung’s Galaxy S24. Regions like Asia-Pacific and North America lead adoption, with 5G smartphone penetration reaching 58% and 75%, respectively, thanks to rapid infrastructure development and carrier subsidies.
Meanwhile, fixed wireless access (FWA) routers are gaining traction, representing 18% of chipset demand, as operators like T-Mobile and Jio expand high-speed internet access to 20 million rural households globally. The automotive sector is also emerging as a growth vector, with Nvidia’s Drive Thor platform enabling 5G-V2X communications in 2024 EV models from BYD and Mercedes-Benz.
Smart Cities Expand Market for Massive Machine-Type Communication Chips
The 5G chipset market is underpinned by the 80% YoY growth in industrial IoT deployments, necessitating sub-10ms latency and 99.999% reliability for mission-critical applications. In automotive manufacturing, Bosch’s 5G-enabled C-V2X modules, powered by Qualcomm’s Snapdragon Automotive 5G Modem-RF, reduce assembly-line latency to 2ms, allowing real-time defect detection across BMW’s Spartanburg plant.
Similarly, Siemens Healthineers utilizes MediaTek’s M80 5G modem in portable MRI machines to transmit high-resolution scans to cloud servers at 4 Gbps, cutting diagnostic delays by 70%. Telecom giants like Vodafone and AT&T report that 65% of enterprise IoT contracts mandate ultra-reliable 5G chipsets with dual-mode (NSA/SA) support for seamless 4G-to-5G migration.
Smart cities are propelling demand for massive machine-type communication (mMTC) chips in the 5G chipset market. Nokia’s MX Industrial Edge (MX-IE) platform, using Marvell’s OCTEON 10 DPU, connects 250,000+ sensors per square kilometer in Singapore’s Tuas Port, optimizing traffic flow with AI-driven analytics. In contrast, Ericsson’s 5G RedCap (Reduced Capability) chipsets reduce IoT device power consumption by 50%, enabling India’s BharatNet initiative to deploy 1.2 million solar-powered agricultural sensors. Regulatory mandates like the EU’s Cyber Resilience Act further accelerate adoption, requiring 5G-enabled encryption in 90% of industrial IoT devices by 2025.
Chipset manufacturers are prioritizing RF front-end (RFFE) innovation to manage diverse IoT requirements. Qorvo’s QPM6677 power amplifiers (PAs) achieve 18% efficiency gains for sub-6 GHz IoT gateways, while NXP’s RW612 tri-radio SoC highlights Wi-Fi 6, Bluetooth 5.3, and 5G-MTC for smart grids. However, 30% of IoT deployments still face interoperability issues due to fragmented 5G NR-U (Unlicensed) standards, prompting 3GPP to fast-track Release 18 protocols in 2023.
Dynamic Spectrum Sharing Reduces Deployment Costs by 40%, Fueling Sub-6 GHz 5G Growth.
The sub-6 GHz band’s dominance in the 5G chipset market, with more than 65% market share, is rooted in its spectral efficiency for macro-network deployments, particularly in urban and suburban environments where operators prioritize coverage over extreme speeds. Unlike mmWave (26 GHz+), sub-6 GHz signals penetrate concrete and glass with minimal attenuation, allowing indoor 5G penetration rates exceeding 85% in cities like Tokyo and Osaka. This band’s adoption is amplified by 3GPP’s NR (New Radio) specifications, which optimize sub-6 GHz for carrier aggregation (up to 200 MHz bandwidth) and Massive MIMO (64T64R configurations).
For instance, NTT Docomo’s n77 (3.7 GHz) network in Japan provides 600 Mbps median speeds utilizing Ericsson’s AIR 6449 radios with integrated sub-6 GHz RAN chips. Telecom equipment vendors also leverage sub-6 GHz’s backward compatibility with LTE, enabling dynamic spectrum sharing (DSS) to reuse existing cell sites, reducing deployment costs by 40%, per Rakuten Mobile’s rollout metrics.
Government Incentives and Local Manufacturing Propel APAC’s 18% CAGR in 5G Chipset Market
Asia Pacific dominates the 5G chipset market with 48% share, boosted by China’s infrastructural scale and India’s affordability-driven ecosystem. China, the largest contributor, deploys 2.1 million 5G base stations (65% of global total), with Huawei’s Balong 5000 modems powering 40% of domestic smartphones. Xiaomi and Oppo leverage MediaTek’s 7 nm Dimensity 9000 chips for sub-US$ 300 5G devices, capturing Southeast Asian markets.
India, second in growth, added 18 million 5G subscribers in early 2024 via Reliance Jio’s US$ 25B network rollout using Samsung’s vRAN chips and indigenous Bharat 6G R&D prototypes. Japan’s NTT Docomo integrates sub-6 GHz SA chips from Fujitsu into robotics for 75% latency reduction in smart factories.
The region’s growth rate of 18.02% stems from government-industry alignment: South Korea’s 45% R&D tax rebates for 5G AI chips and Taiwan’s TSMC producing 82% of global 7 nm 5G wafers. Emerging IoT use cases, like Thailand’s smart farming sensors (40 million units by 2025), require ultra-low-power chips from Unisoc. Additionally, India’s PMI scheme subsidizes 35% of local 5G component manufacturing, attracting Foxconn and Qualcomm to set up Chennai fab units.
5G Chipset Market Major Players:
- Analog Devices, Inc.
- Anokiwave
- Huawei Technologies, Inc.
- Infineon Technologies AG
- Intel Corporation
- MACOM
- MediaTek Inc.
- Murata Manufacturing Co., Ltd.
- Qorvo, Inc.
- Qualcomm Technologies, Inc.
- Samsung Electronics Co., Ltd.
- Unisoc Communications Inc.
- Other Prominent Players
Key Market Segmentation:
By Type
- Modem
- RFIC
- RF transceiver
- RF front end
By Processing Node Type
- 7 nm
- 10 nm
- Above 28 nm
By Frequency Type
- Sub-6 GHz
- 26–39 GHz
- Above 39 GHz
By Deployment Type
- Telecom Base Station Equipment
- Smartphones/Tablets
- Connected Vehicles
- Connected Devices
- Broadband Access Gateway Devices
- Others
By End Use
- Manufacturing
- Energy & Utilities
- Media & Entertainment
- IT & Telecom
- Transportation & Logistics
- Healthcare
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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