North America 5G Chipset Market Outlook to 2030

North America 5G Chipset Market Overview

• The North America 5G chipset market reached a size of USD 8.12 billion in 2023, driven primarily by the growing adoption of 5G technology across various industries, including automotive, healthcare, and consumer electronics. The increasing demand for high-speed internet connectivity and the proliferation of IoT devices are significant drivers. Key factors such as advancements in AI and machine learning, which require high data speeds and low latency, further bolster market growth.
• Leading players in the North American 5G chipset market include Qualcomm Technologies Inc., Intel Corporation, Broadcom Inc., MediaTek Inc., and Samsung Electronics Co., Ltd. These companies dominate the market through continuous innovation and extensive R&D investments to develop advanced chipset technologies that cater to various industry needs. Their strong distribution networks and strategic partnerships with telecom operators and device manufacturers help maintain their market position.
• The CHIPS and Science Act (2022), aimed at promoting investment in semiconductor manufacturing in the U.S., which includes 5G chipset production. This initiative seeks to alleviate supply chain challenges and boost the development and production of advanced 5G wireless chips, crucial for the expansion of 5G networks across the country. The act supports efforts to reintroduce skilled manufacturing employment opportunities in the U.S., enhancing the local semiconductor industry.
• Key cities dominating the North American 5G chipset market include New York, San Francisco, and Dallas. New York is dominating the market due to the advanced technological infrastructure, innovation and also because it is home to numerous technology firms that drive demand for 5G chipsets

North America 5G Chipset Market Segmentation

By Application: The North America 5G chipset market is segmented by application into automotive, consumer electronics, healthcare, industrial, and others. In 2023, consumer electronics dominated the market share within this segmentation. The proliferation of 5G-enabled smartphones, tablets, and wearable devices has significantly driven this segment. The need for higher data speeds and low latency for augmented reality (AR), virtual reality (VR), and gaming applications also supports the growth of the consumer electronics segment.

By Frequency Type: The market is segmented by frequency type into Sub-6 GHz, mmWave, and others. In 2023, Sub-6 GHz dominated the market due to its broad coverage and capacity to provide seamless connectivity over long distances, which is crucial for urban and suburban deployments. Sub-6 GHz frequencies offer a balance between speed and range, making them ideal for initial 5G rollouts, particularly in areas with existing LTE infrastructure.

By Region: The North America 5G Chipset Market is segmented by region into the USA and Canada. In 2023, the USA held a dominant market share under this segmentation. This dominance is attributed to the USA's extensive 5G infrastructure development, significant investments by telecom operators, and a strong consumer base for advanced technologies. The presence of major technology hubs and innovation centers, alongside supportive government initiatives such as the CHIPS and Science Act, further reinforces the USA's leadership in the 5G chipset market compared to Canada.

North America 5G Chipset Market Competitive Landscape

• Intel Corporation: Intel has introduced a series of new products targeting the deployment of 5G network infrastructure, along with enhancements to its processors designed for scalable data centers. The new offerings include the Atom P5900 processors, the Ethernet 700 Series Network Adapter, and the Diamond Mesa ASIC, specifically developed to accelerate 5G network performance and efficiency. These innovations aim to support the growing demand for high-performance 5G infrastructure and enhance Intel's presence in the 5G market.
• Samsung Electronics Co., Ltd.: Samsung Electronics, a pioneer in semiconductor technology, has announced the development of standardized 5G non-terrestrial network (NTN) modem technology, enabling direct communication between smartphones and satellites, particularly in remote areas. This innovation is set to be integrated into Samsung's Exynos modem solutions, accelerating the rollout of 5G satellite communications.

North America 5G Chipset Market Analysis

Growth Drivers

• Surge in Smart Device Connectivity: The increasing adoption of smart devices, including smartphones, tablets, and IoT devices, is a significant growth driver for the 5G chipset market in North America. According to the Federal Communications Commission (FCC), 400 million smart devices will be connected to 5G networks in the U.S. by the end of 2024. This connectivity surge is driven by consumer demand for faster data speeds and seamless connectivity, necessitating advanced 5G chipsets capable of supporting high data throughput and low latency, crucial for applications like augmented reality and real-time data analytics.
• Increasing Demand in Automotive Sector: The automotive industry in North America is increasingly integrating 5G technology to enhance vehicle connectivity, autonomous driving capabilities, and in-car entertainment systems. This growing trend has led to a rise in demand for specialized 5G chipsets designed to meet the unique requirements of the automotive sector, including high-speed data transmission and reliable connectivity, essential for vehicle-to-everything (V2X) communication.
• Rising demand for High-Speed Internet and Large Network Coverage: Rising demand for high-speed internet and large network coverage for several applications, such as distance learning, autonomous driving, multiuser gaming, videoconferencing, live streaming, telemedicine, and augmented reality, is expected to propel the growth of the 5G chipset market.

Challenges

• High Cost of 5G Chipset Production: One of the primary challenges facing the North American 5G chipset market is the high cost associated with the production of advanced chipsets. The cost of raw materials, coupled with the complexity of designing and manufacturing 5G chipsets, has resulted in elevated production costs.
• Supply Chain Disruptions: The global semiconductor shortage that began in 2021 continues to impact the 5G chipset market in North America. Although there has been some recovery, ongoing geopolitical tensions and supply chain disruptions have created uncertainty. This delay has resulted in increased costs and affected the ability of manufacturers to meet growing demand, particularly for sectors relying on rapid 5G deployment.

Government Initiative

• CHIPS and Science Act Funding: The CHIPS and Science Act, enacted in 2022, allocates $280 billion to bolster semiconductor manufacturing in the U.S., which includes funding for 5G chipset production. This initiative aims to strengthen the U.S. semiconductor industrys global competitiveness and reduce reliance on foreign supply chains, thereby boosting the domestic 5G chipset market.
• 5G Fund for Rural America: The Federal Communications Commission (FCC) has established the 5G Fund for Rural America, which aims to allocate up to$9 billionto expand 5G mobile broadband service in rural areas. This initiative is part of ongoing efforts to bridge the digital divide but does not specifically mention a new $2 billion fund for 5G deployment in 2023.

North America 5G chipset market future outlook

Market Trends

The North America 5G Chipset Market is projected to grow exponentially in coming years. This growth will be driven by Surge in Smart Device Connectivity, Increasing Demand in Automotive Sector and rising popularity of E-Bike sharing programs and increasing health and wellness awareness.

• Expansion of 5G Use Cases in Industrial IoT: Over the next five years, the adoption of 5G chipsets in industrial IoT applications is expected to surge. The integration of 5G technology in manufacturing and supply chain management will enhance automation, real-time monitoring, and data analytics capabilities. North America will be equipped with 5G chipsets, driven by the need for reliable, low-latency communication in critical operations.
• Growth in 5G Satellite Communications: The market is poised to witness significant growth in 5G satellite communications, particularly in remote and underserved areas. By 2028 North Americas 5G traffic will be supported by satellite networks, enabling ubiquitous coverage and connectivity. The demand for 5G chipsets capable of supporting satellite communication is expected to rise, driven by advancements in non-terrestrial network technologies and increased investment in satellite infrastructure.