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Proliferation of Connected Devices and Associated Data Traffic Offer Enormous Growth Opportunities for 5G Chipset Makers


News provided by

Frost & Sullivan

13 Feb, 2020, 13:07 GMT

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Emerging 5G applications in automotive, retail, and industrial sectors to further boost revenues, finds Frost & Sullivan

SANTA CLARA, California, Feb. 13, 2020 /PRNewswire/ -- A recent analysis by Frost & Sullivan, Growth Opportunities in the Global 5G Chipset (ICs) and Devices Market, Forecast to 2025,  reveals that smartphones, network equipment, and customer premises equipment will drive the 5G chipsets and devices market in the short term. As connected devices and sensor adoption proliferate, 5G chipset suppliers will also be able to leverage growth from other verticals, such as automotive, healthcare, Industrial Internet of Things, and retail, driving the market to grow at a CAGR of 59.7% between 2019 and 2025, with revenues rising from $1.6 billion to $27.8 billion.

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"5G chipset growth potential will be driven by smartphones and network infrastructure in the first wave of commercialization," said Prabhu Karunakaran, Industry Analyst at Frost & Sullivan. "However, the market's future growth will expand beyond the traditional markets, as the successful trials in retail, industrial and automotive verticals suggest."

Frost & Sullivan's latest research aims to uncover the potential of 5G-enabling chipsets by providing a thorough understanding of the 5G chipset market. The research analyzes all related market verticals and provides detailed shipment and revenue forecasts through the year 2025 for every segment. The report also identifies the key growth opportunities in the segment and provides strategic recommendations to leverage them.

For further information on this analysis, please visit: http://frost.ly/3zr

Smartphones are a major revenue contributor for 5G chipsets, accounting for a 35.4% share of the total 5G chipset market in 2019, with an estimated revenue of $595 million. The vertical is expected to grow significantly toward the end of 2020 and early 2021. Revenues from 5G smartphones have been forecast to reach $18.6 billion by 2025, growing at a CAGR of 77.5% from 2019.

"5G smartphone shipments are expected to begin with high-end devices, as announced by leading OEMs," noted Karunakaran. "However, volume shipments will gain momentum only from 2021, when mid- and low-end smartphones enter the market."

5G chipset and device manufacturers can also explore the opportunities in:

  • Providing a cost-effective solution for the deployment of a high-speed, low-latency network for industrial use.
  • Developing automotive-grade reliable devices and networks for autonomous vehicles.
  • Focusing on cost-optimized solutions that can process large volumes of data and communicate quickly.
  • Improving the AI and ML capabilities in system on chip (SoC) applications.
  • Developing power-efficient devices to enable high-volume data processing in real time.

Growth Opportunities in the Global 5G Chipset (ICs) and Devices Market, Forecast to 2025 is a part of Frost & Sullivan's Measurement and Instrumentation Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Growth Opportunities in the Global 5G Chipset (ICs) and Devices Market, Forecast to 2025
K425-26

Contact:
Jaylon Brinkley
T: 210.247.2481
E: jaylon.brinkley@frost.com

http://ww2.frost.com

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