5G Processor Market Research Report - Global Forecast till 2030

Impact of COVID-19 on the 5G Processor Market

The worldwide lockdown on account of the COVID-19 outbreak has led to an economic crisis that has hit various industries. While several business sectors are bearing the brunt of the pandemic, the smartphone manufacturing industry has been severely impacted. Post the outbreak of SARS-CoV-2; various companies faced tough decisions, in terms of finance and cost-cutting measures to ensure the uninterrupted flow of operations. The Coronavirus lockdown has impacted the manufacturing sector, lowering the demand for smartphones and hyper-scale cloud service providers. The weak demand has had a domino effect throughout the semiconductor industry, with a drop in the prices. The COVID-19 outbreak and the resultant lockdown has led to the shutting down of business operations, as well as e-commerce and retail stores, which has made the supply chains fragile and created a larger gap between the demand and supply. The shipment of 5G smartphones this year can fall significantly on account of the collapsing supply chains as well as the crippled demand.

Considering the long-term impact of the COVID-19 pandemic, governments are mitigating the situation by implementing favorable initiatives as well as policies such as financial packages, lower interest rates and exemptions in taxes. 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 timeframe. Thus, the 5G processors market can expect some relief in the years ahead.

Global Data Traffic from 2017 to 2022 (In Exabytes)

Source: Statista

Impact Analysis