The Europe 5G chipset market accounted for US$ 250.4 Mn in 2019 and is expected to grow at a CAGR of 46.2% over the forecast period 2019-2027, to account for US$ 5228.6 Mn in 2027.
Some of the factors propelling the market for 5G chipsets include the rise in need for internet coverage with reduced power consumption, rise in the demand for high-speed network, growing M2M/IoT connections, and rising in demand for mobile data services. However, the high cost of hardware in the terrestrial network densification is a key challenge that is restraining the growth of the 5G chipset market. Moreover, strategic alliances in the emerging economies are anticipated to be opportunistic for the 5G chipset market. In the present scenario, a 5G chipset is in the concluding phase of testing. These chipsets operate over data speed that is 50 to 100 times more than the 4G counterpart. The 5G chipset market is majorly driven by the exponentially growing needs of the consumer electronic devices that have boosted the manufacturing prospects and convergence of the electronics and automotive industry driving the quest for the semiconductor industry. However, the rapidly changing nature of technology requires consistent changes in semiconductors. Also, the growth of technologies, including Artificial Intelligence, IoT, and connected devices across industry verticals, are projected to offer considerable opportunities to the players in the 5G chipset market.
The 5G chipset market is fragmented in nature due to the presence of several end-users, and the competitive dynamics in the market are anticipated to change during the coming years. In addition to this, various initiatives are undertaken by governmental bodies to accelerate the 5G chipset market further. A stable political climate leads to a few policies and regulatory changes in the European region. Policies in this region are beneficial for the growth of the business, which is one of the reasons behind the development of the semiconductor and IT industry in Europe. However, after the occurrence of BREXIT, Europe has faced major political fluctuations, leading to frequent policy and regulation alteration. Nonetheless, the region has managed to keep its political issue away from impacting the business growth in European regions. The policies in Europe are certainly favorable for the growth of the market owing to the rising industrialization and commercialization in the provinces, which includes the development of semiconductor components.
The end-user segment of the 5G chipset market is further categorized into automotive & transportation, energy & utilities, healthcare, retail, building automation, industrial automation, consumer electronics, public safety & surveillance sectors. The consumer electronics of the 5G Chipset market is leading the Europe market in 2019 and is expected to continue its dominance during the forecast period. A huge growth has been experienced in the number of consumer electronic devices globally. Let alone the penetration of smartphones, which has crossed the 7 Bn mark. The penetration of other consumer electronic devices is also anticipated to rise rapidly in the coming few years, and thus, the potential of 5G technology transformation into the consumer electronics sector is also high.
The overall 5G chipset market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the 5G chipset market. It also provides an overview and forecast for the 5G chipset market based on all the segmentation provided with respect to the European region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the 5G chipset market. Some of the players present in 5G chipset market are Broadcom, Inc., Huawei Technologies Co., Ltd., International Business Machines Corporation, Infineon Technologies AG, Mediatek Inc., Nokia Corporation, Qualcomm Incorporated, Samsung Electronics Co., Ltd., Telefonaktiebolaget Lm Ericsson, and Xilinx, Inc. among others.