Global Smartphones Chipset Market Outlook to 2030

Global Smartphones Chipset Market Overview

• The Global Smartphone Chipset Market was valued at USD 14.7 billion in 2023. The market is primarily driven by the increasing adoption of 5G technology, the proliferation of artificial intelligence (AI)- driven applications, and rising demand for high-performance, energy-efficient smartphones.
• Major players in the smartphone chipset market include Qualcomm Technologies, MediaTek, Apple Inc., Samsung Electronics, and HiSilicon Technologies. These companies are at the forefront of developing innovative chipsets with advanced AI capabilities and 5G connectivity, helping to meet the growing demand for faster, more efficient smartphones.
• Qualcomm Technologies launched the Snapdragon 8 Gen 2 chipset in 2023, designed for premium smartphones with enhanced AI-driven performance and gaming experiences. Apple Inc. introduced the A17 Bionic chip, setting a new standard for AI integration and power efficiency in mobile devices.
• In 2023, Asia-Pacific dominated the global smartphone chipset market, driven by its position as the largest manufacturer of smartphones, especially in China, South Korea, and Taiwan. North America followed, with high consumer demand for premium smartphones and advancements in 5G technology fueling growth.

Global Smartphones Chipset Market Segmentation

The Global Smartphones Chipset Market is segmented by chipset type, application, technology, and region.

• By Chipset Type: The market is segmented into 5G Chipsets, 4G/LTE Chipsets, and Others. In 2023, 5G chipsets held the largest market share due to the increasing deployment of 5G networks globally, particularly in regions like North America, Europe, and Asia-Pacific.

• By Technology: The market is segmented into AI-Based Chipsets, Energy-Efficient Chipsets, and High-Performance Gaming Chipsets. In 2023, AI-based chipsets held the largest share as smartphones increasingly incorporate AI-driven functionalities like facial recognition, voice assistants, and smart camera features.
• By Region: The market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2023, Asia-Pacific held the largest market share, driven by its strong position in smartphone manufacturing and growing consumer demand for high-tech devices.

Global Smartphones Chipset Market Competitive Landscape

• Apple Inc.: Apple's A17 Bionic chip, launched on September 12, 2023, powers the iPhone 15 Pro and Pro Max. Built on a 3nm process, it features 19 billion transistors, a 6-core CPU, and a 6-core GPU, enhancing performance, efficiency, and machine learning capabilities in smartphones.
• MediaTek: MediaTek unveiled its flagship Dimensity 9300 chipset on November 6, 2023. Built on a 4nm process, it features a 3.25GHz Cortex-X4 core, three Cortex-X4 cores, and four Cortex-A720 cores. The chip supports 8K video recording, 320MP cameras, and hardware-based generative AI capabilities, enhancing smartphone performance substantially.

Global Smartphones Chipset Market Analysis

Global Smartphones Chipset Market Growth Drivers:

• 5G Expansion and Adoption: The global rollout of 5G networks is a major driver of chipset demand. As of early 2024, over 315 wireless service providers have deployed 5G networks worldwide, indicating strong momentum in the rollout and adoption of this technology.
• AI Integration in Smartphones: AI integration is transforming smartphones, with 28% of new smartphones projected to be generative AI-capable by 2025. This shift is driven by advancements in chipset technologies and growing consumer demand for AI features, enhancing user experiences through smarter, more intuitive devices.
• Rising Demand for High-Performance Gaming: The popularity of mobile gaming is impacting chipset demand. The Gen AI smartphone segment is expected to grow by 364% year-over-year in 2024, highlighting the need for chipsets that can handle advanced graphics and gaming applications effectively, particularly in regions like Asia-Pacific.

Global Smartphones Chipset Market Challenges:

• Supply Chain Disruptions: Ongoing semiconductor shortages have severely impacted production, with lead times extending beyond 40 weeks for basic semiconductors and over 52 weeks for high-end components. Labour shortages have left the U.S. semiconductor industry short by 70,000 to 90,000 skilled workers as of 2023.
• High Research & Development Costs: The development of advanced chipsets requires R&D investment, with companies like Intel and Micron committing $35 billion collectively to expand production capabilities. This high cost of innovation can limit market entry for smaller players, making it challenging for them to secure necessary funding.

Global Smartphones Chipset Market Government Initiatives:

• US CHIPS Act: In 2022, the US government passed the CHIPS Act, allocating $52.7 billion to support domestic semiconductor manufacturing. This initiative aims to reduce reliance on foreign suppliers and bolster the US semiconductor industry, which is critical for national security and technological leadership.
• Chinas 14th Five-Year Plan: China's 14th Five-Year Plan aims to increase self-sufficiency in semiconductor production, targeting 70% domestic chipset production by 2025. This initiative is expected to enhance China's technological capabilities and boost the global supply of smartphone chipsets, reducing dependency on foreign technology and suppliers.

Global Smartphones Chipset Market Future Market Outlook

The Global smartphone chipset market is expected to grow substantially over the next five years, driven by the increasing adoption of 5G technology, the integration of AI capabilities, and continuous innovations in chipset manufacturing.

Future Market Trends:

• AI-Driven Chipsets: AI-enabled chipsets are expected to grow substantially as smartphones increasingly rely on machine learning for enhanced user experiences. AI chips outperform general-purpose chips in tasks like image recognition and natural language processing, making them crucial for the next generation of smart devices.
• Foldable and Modular Smartphones: The rise of foldable smartphones is anticipated to drive demand for specialized chipsets that support flexible displays and modular hardware configurations. This trend is particularly evident in the premium smartphone segment, where manufacturers are innovating to create versatile devices.