According to a new market research report published by Transparency Market Research titled ‘5G Chipset Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019–2026,’ the global 5G chipset market is estimated to be valued at US$ 1,571.9 Mn by 2019 and is expected to expand at a CAGR of 44.01% from 2019 to 2026, to reach value of US$ 20,195.8 Mn by the end of the forecast period.
Commercialization of the 5G technology across the globe to fuel the global 5G chipset market
Various telecom operators as well as chipset manufacturers are investing significantly in research and development activities for commercialization of the 5G technology. Telecom operators are collaborating with various network equipment providers as well as service providers to accelerate the commercialization of 5G. In November 2018, Huawei, a prominent network equipment company, announced to have signed 22 commercial contracts for 5G.
The company is currently working with more than 50 carriers on 5G commercial trials. Furthermore, various chipmakers are introducing advanced 5G chipsets in the market in order to accelerate the adoption of 5G across the globe. For instance, in December 2018, Qualcomm, a prominent chipmaker launched its flagship Snapdragon 855 chip, which would facilitate use of the 5G technology in mobile phones.
Rising demand for high speed to propel the global 5G chipset market
Demand for high-speed Internet has been increasing globally for the last few years, especially in developing economies such as India and China. The primary factor responsible for this rise in demand is the increase in demand for on-demand video streaming. In order to satisfy this surging demand for high-speed data, smartphone makers are engaging in the development of smartphones with 5G capabilities.
Furthermore, chipmakers are forming partnerships with phone manufacturers to provide them with 5G chipsets to be installed in their smartphones. For instance, Qualcomm, a leading chipmaker, has partnered with 19 phone makers to supply 5G chipsets to them.
Asia Pacific market to expand at a rapid pace owing to increasing number of smartphone users in the region
In terms of geography, the global 5G chipset market has been divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is estimated to be the leading region of the global market by 2019, followed by Europe. The market in Asia Pacific is projected to expand at the maximum CAGR from 2019 to 2026 owing to the rising number of smartphone users and increasing demand for high-speed Internet in the region.