Demand for 5G semiconductor chips, which enable higher connection speeds compared to 4G, greater bandwidth and faster responsiveness, is set to explode as applications like autonomous driving, telemedicine, augmented and virtual reality become mainstream, according to Coherent Marketing Insights, a global market intelligence and consulting organization.
The firm estimates the 5G chipset market will grow from $3.126 billion in 2021, to $36.6 billion by 2030, at a CAGR of 26.7 percent. “Major drivers for the growth of the 5G chipset market are rising deployment of 5G infrastructure globally and increasing adoption of 5G-enabled devices. The roll out of 5G networks is gaining pace across regions,” according to 5G Chipset Market Analysis — 2022 to 2030.
New applications demand more data, faster data speeds and lower latency, and 4G is showing “limitations” in handling the growth of data, according to the report. “The exponential growth of data consumption driven by the rise of technologies such as IoT, VR/AR, autonomous vehicles, and HD video streaming has increased the demand for faster internet speeds and lower network latency,” states the report. “5G networks promise speeds that are 10-100 times faster than 4G along with latency as low as 1 ms, making 5G a necessity for future applications.”
Additionally, the growth of private 5G network deployment by enterprises will stimulate the market for RedCap or reduced capacity 5G chipsets.
By J. Sharpe Smith, Inside Towers Technology Editor
Reader Interactions