5G Modem Chipset Market Size, Share, Trends, Growth and Forecast 2034

5G Modem Chipset Industry Prospective:

The global 5G Modem Chipset market size was worth around USD 34.5 billion in 2024 and is predicted to grow to around USD 182.1 billion by 2034, with a compound annual growth rate (CAGR) of roughly 18.1% between 2025 and 2034.

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5G Modem Chipset Market: Overview

5G modem chipset is a piece of equipment that produces wireless communication across the fifth generation of cellular networks. This chipset lets devices, including tablets, smartphones, laptops, Internet of Things (IoT) devices, and even certain home routers, connect to and run on 5G networks.

Faster and more reliable wireless communication across a range of uses is driving demand for 5G modem chipsets. The market for 5G modem chipsets is likely to remain robust as 5G networks expand and disrupt both conventional sectors and consumer markets, therefore encouraging innovation and challenging established knowledge.

With Industry 4.0 emerging, 5G is expected to hasten the usage of wireless devices in companies. Industry 4.0 promotes cellular connectivity throughout the sector, and the emergence of IoT and machine-to-machine interactions fuel 5G modem chipset industry growth.

Key Insights

• As per the analysis shared by our research analyst, the global 5G Modem Chipset market is estimated to grow annually at a CAGR of around 18.1% over the forecast period (2025-2034).
• In terms of revenue, the global 5G Modem Chipset market size was valued at around USD 34.5 billion in 2024 and is projected to reach USD 182.1 billion by 2034.
• The growing 5G infrastructure investment is expected to drive the 5G Modem Chipset market over the forecast period.
• Based on the component, the modem chip segment is expected to hold the largest market share over the forecast period.
• Based on frequency, the Sub-6 GHz segment is expected to dominate the market expansion over the projected period.
• Based on end-user, the consumer electronics segment is expected to capture the largest market share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

5G Modem Chipset Market: Growth Drivers

The rising number of M2M/IoT connections across the industry drives market growth

MMTC, or massive machine-to-machine communications, is expected to be supported by 5G as it can manage a large number of connections, has very high bandwidth, and has very low latency in terms of data transmission. It is anticipated that this technology will be crucial to the Internet of Things sector in both current and future applications.

Due to the growth of IoT and machine-to-machine connections, which have been crucial in gaining market momentum, Industrial Revolution 4.0 supports cellular connectivity across the industry.

One of the main factors propelling the adoption of 5G is the smart city revolution. Numerous sensors and M2M wireless devices are available through IoT and M2M (machine-to-machine) communication, which improves a city's intelligence and connectedness. The need for a 5G-based connection has been greatly aided by these factors.

5G Modem Chipset Market: Restraints

High development and manufacturing costs hinder market growth

The 5G modem chipset industry's development may be hampered by the chipset's high production cost and development complexity. 5G modem chipsets must offer massive MIMO, beamforming, carrier aggregation, and many frequency ranges (sub-6 GHz and mmWave). This makes the design process quite difficult and requires both long-term development plans and excellent engineering expertise. Building chipsets that can operate in both Standalone (SA) and Non-Standalone (NSA) networks adds still another level of complexity.

Companies that want to be competitive also have to make large R&D investments in low-latency algorithms, power-efficient architecture, and new artificial intelligence-enhanced modems. Few major companies, including MediaTek, Samsung, and Qualcomm, can keep this spending under control.

5G Modem Chipset Market: Opportunities

Rising product launch offers a lucrative opportunity for market growth

The growing product launch is expected to offer a lucrative opportunity for the 5G modem chipset market growth over the analysis period. For instance, in February 2024, Qualcomm Technologies, Inc. has been at the forefront of 5G technology from its inception. Once the seventh edition of its 5G modem-to-eye antenna solution releases, the Snapdragon® X80 5G Modem-RF System will once more establish the benchmark for innovation.

The Snapdragon X80 boasts several firsts for the world with its 5G-Advanced-ready architecture and dedicated 5G AI Processor: the first 5G modem with fully integrated support for NB-NTN satellite communications, a smartphone 6-antenna architecture, 6X carrier aggregation, and AI-based mmWave range extension for fixed wireless access customer premise equipment (CPE).

5G Modem Chipset Market: Challenges

Limited mmWave deployment poses a major challenge to market expansion

Spectrum is expected to be essential to 5G development, deployment, and operation. It is anticipated that the 5G spectrum will result in spectrum fragmentation, band expansion, and a variety of licensing options. Significant worries have been raised by these repercussions for suppliers trying to match the spectrum needs of upcoming 5G goods.

For carrier-deployed networks, however, the usual planned mode of allocating these frequencies does not offer a viable and cost-effective solution. Setting up service for the mmWave and microwave bands involves a new, customer-led procedure.

Different spectrum licensing strategies are needed for the limited coverage area. It is anticipated that this will raise several issues, especially for applications searching for the same frequency band, which could result in overload on a certain spectrum range. The global 5G modem chipset market for widespread 5G adoption is anticipated to be hampered by these issues.

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5G Modem Chipset Market: Report Scope

5G Modem Chipset Market: Segmentation

The global 5G Modem Chipset industry is segmented based on component, frequency, end-user, and region.

Based on the components, the global market is bifurcated into antenna, modem chip, and RF. The modem chip segment is expected to hold the largest market share over the forecast period due to the increasing infrastructure investment. Telecom companies and governments are spending billions on 5G infrastructure, particularly across North America and the Asia Pacific. Chipset demand is increasing across a range of businesses as a result of this extensive implementation.

Based on the frequency, the global 5G Modem Chipset industry is bifurcated into Sub-6 GHz, Above 39 GHz, and Between 26 and 39 GHz. The Sub-6 GHz segment is expected to dominate the market expansion over the projected period. The majority of nations use sub-6 GHz as their principal 5G spectrum for both initial and extensive rollouts. Almost all mobile network operators (MNOs) support it, allowing for steady and quick demand for modem chipsets.

Based on the end-user, the global 5G Modem Chipset market is bifurcated into consumer electronics, energy and utilities, industrial automation, automotive and transportation, retail, healthcare, and others. The consumer electronics segment is expected to capture the largest market share over the forecast period. The segment expansion is attributed to the growing electronics sector.

5G Modem Chipset Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global 5G modem chipset market. Due to the introduction of 5G networks in North America, low-latency, high-bandwidth emerging technologies such as virtual reality, augmented reality, and autonomous automobiles are expanding. In the United States, smart cities, smart businesses, and smart households are attracting notable investment.

High-graphic internet gaming is also becoming rather popular among American consumers. The country is also leading the way in the application of self-driving automobiles and smart transportation technologies. It is expected that all of these developments will raise US demand for 5G modem chipset components.

Besides, the Asia Pacific is expected to grow at a rapid rate over the forecast period. This is a result of the growing acceptance of modern technologies, including cloud computing, artificial intelligence, and the Internet of Things, together with the fast spread of high-speed connectivity.

By allowing more rapid and reliable connectivity that can serve a spectrum of apps and services, 5G chipsets can help satisfy this demand. New use cases and applications arising from this trend are being developed in fields, including smart cities, healthcare, education, and transportation.

5G Modem Chipset Market: Competitive Analysis

The global 5G Modem Chipset market is dominated by players like:

• Qualcomm Incorporated
• MediaTek
• Huawei Technologies Co. Ltd
• Samsung Electronics Co. Ltd
• Intel Corporation
• Infineon Technologies AG
• Nokia
• Xilinx
• Qorvo Inc.
• UNISOC

The global 5G Modem Chipset market is segmented as follows:

By Component

• Antenna
• Modem Chip
• RF

By Frequency

• Sub-6 GHz
• Above 39 GHz
• Between 26 and 39 GHz

By End-User

• Consumer Electronics
• Energy and Utilities
• Industrial Automation
• Automotive and Transportation
• Retail
• Healthcare
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa