Pune, India, May 2020, MRFR Press Release/- Market Research Future has published a Half-Cooked Research Report on the Global 5G Processor Market.
The 5G processor market can potentially achieve a strong valuation of more than USD 92.5 billion by 2030, reveals Market Research Future (MRFR). The global market is also anticipated to expand at a rate of 21.56% between 2022 and 2030 (forecast period). It is also projected that the market can reach a valuation of USD 92.5 Billion by 2030. We will provide covid-19 impact analysis with the report, offering an in-depth review following the coronavirus disease outbreak.
COVID-19 Impact Analysis
The worldwide lockdown on account of the COVID-19 outbreak has led to an economic crisis that has hit various industries. While a number of business sectors are bearing the brunt of the pandemic, the smartphone manufacturing industry seems has been severely impacted. Post the SARS-CoV-2 outbreak, various companies were faced with tough decisions, in terms of finance and cost-cutting measures to ensure uninterrupted flow of operations. The lockdown situation was the short term impact that the novel coronavirus has had across manufacturing sectors, leading to plummeting demand from the smartphone and hyperscale cloud service providers. The weak demand has had a domino effect throughout the semiconductor industry, with the drop in the prices. The COVID-19 outbreak and the resultant lockdown has led to shutting down of operations, along with e-commerce and retail stores, which has made the supply chains fragile and created a larger gap between demand and supply. The shipment of 5G smartphones this year can fall significantly on account of the collapsing supply chain as well as the crippled demand.
Considering the long-term impact of COVID-19, governments are striving to handle the situation by implementing favorable initiatives as well as policies such as financial packages, lower interest rate and exceptions in tax. Moreover, the telecom sector’s supply chain is highly robust, and the infrastructure companies are prepared to handle the expected shortages in components in the post pandemic era. Even as the world is struggling to find a COVID-19 breakthrough, the 5G processor market can expect some relief in the years ahead.
Primary Drivers and Main Challenges
The escalating demand for low-latency and ultra-reliable data networks that can deliver seamless connectivity is a highly important growth booster in the 5G processor market. 5G processor has turned into one of the most integral aspects of modern telecommunication equipment. 5G processor is generally found in laptops, smartphones, modems, routers and base stations. There has been an increase in the installation of these processors in connected vehicles to provide better Vehicle-to-Everything or V2X connectivity.
In the coming years, with more nations acquiring the needed infrastructure that supports 5G, the demand for faster data transfers and dependency on cloud technology escalating, the 5G processor market is presumed to observe higher growth prospects.
5G network with Internet of Things (IoT) is viewed as the perfect solution to various business issues that are related to industrial automation. The stronger network helps manufacturers create smart factories and benefit from the latest technologies, such as machine learning, artificial intelligence (AI), automation and augmented reality. Thus, IoT can emerge as a prominent trend in the 5G processor market during the appraisal period.
The 5G processor market has been considered for spectrum and end-user.
Spectrum-wise, the primary categories include mmWave spectrum and Gigabit LTE spectrum. The mmWave spectrum is the top segment in the market, as it is affordable and is also perfect for applications that don’t necessary require fast transfer speeds.
The end-users in the global market include telecommunication, manufacturing, consumer electronics, automotive, IoT and others (military, aerospace, aviation, and more). The telecommunications industry is the leading end-user segment, on account of the 5G processor mobile industry. 5G processors are expected to be find widespread use in the smartphone market owing to their efficiency and speed and also on account of them being the obvious successor to the 4G processors. In addition, with rising automation of production facilities in the manufacturing industry, the demand for seamless communication between diverse machines and the human supervisors has increased significantly, leading to higher demand for 5G processor in manufacturing.
The 5G processor market growth has been assessed in the key regions of North America, APAC or Asia Pacific, Europe and RoW or Rest of the World.
North America has reached the pinnacle of the global 5G processor market, backed strongly by the thriving telecommunications industry and a manufacturing industry with highly automated plants. The persistently expanding automotive sector along with a robust smart device market in the region also induces business growth. Also, increasing efforts to develop 5G processors for smartphones applications, like augmented reality (AR) gaming, virtual reality (VR) gaming, and UHD video can also bolster the market growth in the preceding years.
Being a technically advanced region, Europe can observe a commendable growth in the coming years as a result of a flourishing automated manufacturing sector along with a rising number of people that are focused on the IoT interconnectivity of devices.
As the fastest-gaining market, APAC’s strongest booster can be its expansive telecommunication industry. Japan and South Korea consist of extremely advanced and thriving automated manufacturing plants that also work in favor of the regional market.
The RoW market can benefit from the heightened demand for 5G processors in the telecommunication sector of the region and the rising industrialization rate.
Some of the leading competitors in the market are Imagination Spreadtrum, Technologies, MediaTek, Intel Corporation, AMD, Samsung Electronics Co. Ltd, Hisilicon (Huawei), ARM, Apple Inc., UniSoc Communication, Nvidia, Qualcomm, and more.
Qualcomm has launched Snapdragon 768G 5G processor that now boasts of 20 percent better performance compared to the previous Snapdragon 765.