Asia Pacific 5G Chipset Market Outlook to 2030

Asia Pacific 5G Chipset Market Overview

• The 5G chipset market in Asia Pacific was valued at USD 20 Billion based on the historical data of past five years, driven by the widespread adoption of 5G technology across industries such as telecommunications, manufacturing, and smart cities. The increasing number of connected devices, IoT applications, and mobile internet users are pushing for faster data transfer rates, low latency, and increased network capacity.

• Leading global companies dominate the Asia Pacific 5G chipset market, including Qualcomm, MediaTek, Samsung Electronics, Huawei, and Intel. These firms are driving the market by investing in R&D, launching cutting-edge 5G chipset solutions, and partnering with telecom providers to roll out 5G networks across the region.
• In February 2023, Qualcomm launched the Snapdragon X75, its latest 5G chipset designed for premium smartphones, marking a major development in high-speed mobile connectivity. This chipset features AI-powered enhancements and supports Wave and sub-6GHz 5G, aiming to improve power efficiency and network performance.
• China remains the dominant player in the Asia Pacific 5G chipset industry. The country's leadership is attributed to its robust 5G infrastructure, the presence of leading tech giants such as Huawei and ZTE, and aggressive government policies to promote smart cities and IoT adoption. Shenzhen and Beijing are at the forefront of 5G innovation, home to several pilot projects and research initiatives.

Asia Pacific 5G Chipset Market Segmentation

The Asia Pacific 5G chipset market is segmented into various factors such as component, application and region etc.

By Component: The market is segmented by component into modem chips, RFIC chips, and baseband processors. Modem Chips held the dominant market share, due to their essential role in enabling devices to connect to 5G networks. The increasing demand for smartphones and connected devices has driven the growth of this segment.

By Application: The market is segmented by application into smartphones, IoT devices, and automotive. Smartphones held the dominant. The widespread adoption of 5G-enabled smartphones, especially in countries like China and South Korea, has driven this segment's dominance. These devices are integral to smart city projects and industrial automation, areas where 5G has proven to be transformative.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and Rest of APAC. China dominated the market share, driven by government investment in 5G networks and the presence of leading chipset manufacturers, supported by its innovative approach to 5G applications in smart factories and robotics.

Asia Pacific 5G Chipset Market Competitive Landscape

• MediaTek: MediaTek launched its Dimensity 9000 chipset in 2021, targeting premium smartphones in the Asia Pacific market. The chipset has gained significant traction in China and South Korea, where smartphone manufacturers are integrating it into their flagship devices. MediaTek is expected to ship over 200 million chipsets by the end of 2024, bolstering its position in the market.
• SK Telecom: SK Telecom partnered with Singtel to develop next-generation telecom networks, including advancements in AI and 6G technologies. This collaboration aims to leverage their combined strengths to innovate in areas such as network slicing and virtualization, which are crucial for maximizing the capabilities of 5G and preparing for future 6G networks.

Asia Pacific 5G Chipset Industry Analysis

Growth Drivers

• Rising Smartphone Penetration: In 2024, the Asia Pacific region is expected to see over 1.6 billion smartphone users, a significant driver for the 5G chipset market. With more 5G-enabled devices entering the market, demand for high-performance chipsets is on the rise. Countries such as India and China are at the forefront, with millions of 5G devices being sold annually, contributing to the regions growing demand for 5G chipsets.
• Expansion of IoT Applications: The proliferation of IoT devices in the region is a major growth driver. Over 3 billion IoT devices will be connected via 5G networks in Asia Pacific. This is especially significant in countries like Japan and South Korea, where IoT is transforming industries such as healthcare, manufacturing, and logistics. The growth in connected devices will increase demand for low-latency, high-speed chipsets capable of supporting these applications.
• Growth in Smart City Initiatives: Major urban centers like Beijing, Tokyo, and Seoul have been allocated billions in funding for smart city projects that require 5G infrastructure. China alone plans to invest in smart city technologies by 2025, heavily relying on the deployment of 5G networks. These initiatives are expected to bolster the market for 5G chipsets as they form the backbone of high-speed, interconnected systems required for city-wide IoT applications.

Challenges

• Regulatory and Spectrum Allocation Issues: The Asia Pacific region is facing delays in 5G spectrum auctions, especially in countries like India and Indonesia, where legal and regulatory frameworks are still evolving. In 2024, the Indian government is struggling to finalize spectrum allocation, which is delaying 5G network rollouts and, by extension, reducing demand for 5G chipsets.
• High Power Consumption of 5G Devices: One of the key challenges in the adoption of 5G technology is the increased power consumption of 5G chipsets. It has been observed that 5G-enabled devices consume more power compared to their 4G counterparts. This is creating a bottleneck for manufacturers, particularly in sectors like automotive and IoT, where energy efficiency is critical.

Government Initiatives

• India's 5G Push in 2024: The Indian government has initiated a USD 2 billion fund to encourage local manufacturing of 5G chipsets and infrastructure. This initiative, part of the Atmanirbhar Bharat (Self-Reliant India) campaign, aims to reduce reliance on foreign semiconductor imports and promote homegrown technologies, providing a significant boost to the local 5G chipset market.
• Japans Telecommunications Strategy: Japan is investing USD 1 billion by 2024 into the development of 5G-based communication systems, with a focus on public safety and disaster management. The government aims to build a resilient communication network, and this investment will drive the demand for specialized 5G chipsets capable of operating in mission-critical environments.

Asia Pacific 5G Chipset Market Future Outlook

The Asia Pacific 5G chipset market is projected to grow exponentially, supported by the continued expansion of 5G infrastructure, rising demand for ultra-fast communication systems, and IoT growth across sectors like automotive, healthcare, and smart cities. Countries like China, Japan, and India are expected to lead in 5G deployment, further enhancing the market's outlook.

Future Trends

• Rise of 5G in Automotive Applications: The Asia Pacific region is expected to lead in the adoption of 5G-enabled autonomous vehicles. Countries like Japan and South Korea will see more autonomous vehicles operating on 5G networks, creating significant demand for chipsets capable of handling complex data processing and communication between vehicles and infrastructure.
• Increased Focus on Energy Efficiency in 5G Devices: Energy efficiency will be a key trend in the development of 5G chipsets over the next five years. Chipset manufacturers will prioritize creating low-power 5G chipsets to meet the growing demand from IoT devices and wearable technologies that require extended battery life. These advancements will be particularly significant in markets like India and Indonesia, where energy costs are a concern.