5g Chipset Market Is Expected to Grow at a Robust CAGR of 41.0%

Accoeding to The Insight Partners report on 5G Chipset Market 2019, in APAC region, the 5G chipset market is expected to grow at an exponential rate and therefore anticipated to be a fastest growing region. Few trends are anticipated to have a positive impact on the 5G deployment in North America including, digital engagement of the US consumer, operator investment in the LTE and fiber network upgrades, leading R&D investments, favorable economy as well as business environment and lastly the large scale mobile and telecommunication media convergence in the region.

Some of the key players operating in the 5G chipset market are Broadcom, Inc., Huawei Technologies Co., Ltd., Infineon Technologies AG, International Business Machines Corporation, MediaTek Inc., Nokia Corporation, Qualcomm Incorporated, Samsung Electronics Co., Ltd., Telefonaktiebolaget LM Ericsson, and Xilinx, Inc. among others.

In the recent few years, 5G chipset market has noticed noteworthy M&A and partnership activity. Some of the significant deals includes, collaboration between Xilinx Inc. and ZF. Through this, both the company would enable the AI Innovation and Autonomous Driving Development. Through this collaboration, Xilinx technology will power ZF's highly-advanced artificial intelligence (AI)-based automotive control unit, called the ZF ProAI, to enable automated driving applications. Similarly, partnership initiative has also been undertaken. Xilinx acquired DeePhi Technology Co., Ltd (DeePhi Tech), a startup with industry-leading capabilities in machine learning, specializing in deep compression, pruning, and system-level optimization for neural networks. Owing to this, Xilinx is looking forward to build its leading engineering capabilities and enabling the adaptable and intelligent world.

The consumer electronics by end users of the 5G chipset market is expected to dominate the 5G chipset market during the forecast period. The huge growth has been experienced in the number of consumer electronic devices globally. The penetration of other consumer electronic devices is also anticipated to rise rapidly in the coming few years and thus, the potential of 5G technology transformation into the consumer electronics sector is also high.

Contractual alliances and partnerships along with product innovation is expected to be the key growth strategy to be adopted by players for next two-three years. However, this strategy could impact competition level. It is also expected to generate new market as well as product opportunities as recently combined companies will thrive to maintain position and profitability.

US holds the largest 5G chipset market share in North America region. The The US is one of an economically advanced country and observes endless improvement in the ICT industry. The country has experienced a dynamic push for the distribution of spectrum bands for the 5G broadband services. Relevant progress has made in both less than and more than 24 GHz bands. Earlier, the FCC has put its focus on the spectrum more than 24 GHz, however, from 2017 it has increased its concentration to find mid-band spectrum compatible for 5G applications. The country has also observed a few initiatives to the growth of 5G network by various telecom and mobile operators. In APAC, China is estimated to hold the highest market share in 2020. As, China is a most populated country across the world. Owing to the cheap labor costs in the country, many of the players in the different market have opened their manufacturing plants and offices in the country. Also, the IIoT is expected to be a 5G’s most vital use case in assisting China’s “Made in China 2025” initiative.