5G Processor Market is set to grow at a CAGR of 21.56%, to hit USD 92.05 billion by 2022-2030
5G processors are gaining momentum in recent years owing to the increasing demand for faster processing speed and large critical data transfer. The potential benefits of the 5G processors such as higher transmission speed, accuracy, higher data transfer speeds are propelling the manufacturing sectors and market verticals to deploy the 5G processors for the efficient handling of key operations. Moreover, the intensive utilization of IoT devices, increasing utilization in automated factories, the higher number of streaming content are presenting lucrative opportunities for the overall growth of the 5G processor market in recent years. 5G Processor Market is expected to cross USD 92.05 billion in 2030 growing at a CAGR of 21.56%.
The smartphone manufacturers are increasingly deploying the 5G processors to serve the increasing demand and changing customer preferences. On the other hand, the manufacturing industries are getting automated in recent years to increase the overall efficiency and increase the production rate; the automated industries are highly reliant on efficient and faster data transmission, as the devices work based on the data received at a faster rate. Since the 5G processors are capable of handling volumes of data and transmitting them at a faster rate with a minimal amount of time, they are intensively utilized in automated industries, which are expected to boost the 5G processor market growth during the forecast period.
The COVID 19 has impacted the manufacturers of semiconductor chips and mass production. However, the strategies carried out by the semiconductor manufacturers by stocking excess inventories to compensate the production delays for any unforeseeable circumstances have helped to combat the impact of the COVID pandemic. The impact on the semiconductor manufacturing units is highly automatic and is requires less labor-intensive. Such factors have helped to support the overall growth of 5G processors during the pandemic. On the other side, the rapid growth of the IT & telecom sectors and the digital economic systems were presenting opportunities for the overall growth of the 5G processor industry.
Several countries have imposed stringent regulations and restrictions on movement and transportation. This has propelled the manufacturers to adopt digitalizing the key operations. However several organizations have adopted digitalization to carry out their business processes such as supply chain, product management, sales and marketing, and significant others. Such factors have increased the 5G processor industry value during the pandemic.
The advancing technologies have led to the growth of several applications such as distance learning, autonomous driving, multi-user gaming, telemedicine, augmented reality and so on which are highly dependent on high-speed internet connectivity, which is augmenting the overall growth of the 5G processor market.
The demand for efficient communication is rapidly increasing in recent times, additionally; the demand for efficient data transfer and data processing is also increasing, which has propelled the overall growth of the 5G processor market. Moreover, the emerging social media platforms have increased video conferencing and high-quality video sharing, which are fuelling the overall growth of the 5G processor market.
The inefficient network capacity for handling the M2M communication and Human-based communications are presenting lucrative opportunities for the overall growth of the 5G processor market, as they are efficient in reducing the latencies and offer higher data transferring speeds. Additionally, the demand for the next-level cellular network is increasing for mobile-based communications, with features including hyper-connectivity and larger bandwidth. Such factors are expected to propel the overall growth of the 5G processor industry.
The demand for video content and business-related content and consumer preferences to use cloud-based services are rapidly increasing in recent times, due to the convenience and faster accessibility, which are creating a huge impact on the overall growth of the 5G processor market.
The smartphone manufacturers or telecommunication sector is considered as the major end-user market of 5G processors, however, the 5G processor chips are set to impose higher manufacturing costs and thereby increase the overall costs of the smartphone or the smart devices. Therefore the manufacturers are limiting the integration of 5G processors to premium smartphones.
The development of 5G processors and their deployment in the rural regions are expected to grow slower than the urban regions owing to the cost incurred and poor awareness, as the expenses for setting up the 5G towers are expected to restrict the overall growth of 5G processors.
As the 5G processors are intensively deployed by smartphones and smart devices for telecommunication purposes, the tall buildings and hindrances such as trees, rain tend to block the frequency of the 5G network which are expected to reduce the 5G processors market value during the forecast period.
The 5G network infrastructure connects several devices which leads to the vulnerability for the cyber security threats, the companies are forced to install security operations which are further leading to additional operational expenses.
Cumulative Growth Analysis:
The 5G processors are intensively used in IoT technologies and IoT-based devices for the exceptional data handling and transmission capacity, the IoT devices are used in varied applications such as smart homes, smart cities, and automated applications. These factors are fuelling the overall growth of the 5G process market. The IoT-based technologies operate with several devices where multiple devices concurrently transmit data using 5G processors, thereby strengthening the IoT network.
On the other hand, the automotive market is considered the second major end-user market of the 5G processors market, owing to the increasing investment in the automotive sector. The emerging self-driving cars, driver safety protocols, and AI-based applications in the vehicles require effective communication between the devices integrated and the machine-to-human communication. Therefore 5G processors are deployed to transmit data to the remote or cloud computing drivers. Such factors are augmenting the 5G processor market growth in recent years. The market value of the 5G processor market is expected to surpass the market value of USD 92.05 billion by the year 2030 while registering a CAGR of 21.56% during the forecast period.
Value Chain Analysis:
The COVID 19 pandemic has brought in a positive impact on the 5G processor market growth, as several organizations were carrying out significant strategies to carry out business processes. Several organizations were digitalizing their key business processes as the governments were imposing stringent laws and regulations in transportation and large gatherings. Such factors have stimulated the demand for 5G processors. Automotive industries were rapidly developing which integrates the 5G processors for its novel applications such as Vehicle-to-Vehicle, Vehicle-to-infrastructure, Vehicle-to-pedestrian, Vehicle to-network and other crucial applications such as automated driving, digital logistics, intelligent navigation, which are highly difficult to be operated with existing network technologies. Therefore the growth of the 5G processor market is highly influenced by the growth of the automotive market.
On the other hand, the proliferation of 5G devices with Sub-6 GHz spectrum band is increasingly gaining momentum owing to the widespread coverage, IoT services, and significant other benefits. Moreover, the potential benefits of 5G processors such as higher transmission speed and accuracy are presenting lucrative opportunities for the overall growth of the 5G processor market.
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Currently, the Asia-pacific region is expected to showcase a healthy growth rate in the 5G processor industries, owing to the increasing development including the R&D activities in the 5G processor market. Countries like China are highly involved in the development of the 5G processor industries and the 5G network infrastructure.
On the other hand, North America is also witnessing tremendous growth in the telecommunication sector which intensively utilizes the 5G processors, additionally; the automated manufacturing industries across the region are presenting a lucrative opportunity for the overall growth of the 5G process market across North America.
In the year 2020, one of the leading market players Qualcomm has launched a 5G smartphone that belongs to the 7 series, which is comprised of Snapdragon 750G 5G mobile platform, and brilliant HDR gaming, and on-Device AI technologies as well.
In the year 2018, one of the major market players, Intel Processor Corporation has announced their investment of USD 28.7 billion in R&D to incorporate innovative technologies. Following which several market players are increasing their investments in the 5G processor market to strengthen their competitive position in the market.
In the year 2020, one of the leading market players, Qualcomm has launched the AI-enabled 5G robotics platform which is considered as the first development of its kind. The robotic platform is considered the most efficient in terms of power, computing and is deployed in industrial, and professional service applications.
This report has covered:
|Market Size||USD 92.05 billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Spectrum, By End User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Samsung Electronics Co. Ltd, Hisilicon (Huawei), Apple Inc., UniSoc Communication, Intel Corporation, Qualcomm, AMD, MediaTek, Spreadtrum, ARM, Imagination Technologies, Nvidia|
|Key Market Opportunities||The escalating demand for low-latency and ultra-reliable data networks that can deliver seamless connectivity.|
|Key Market Drivers||
The 5G processors market is going to gain a valuation of USD 92.05 billion in 2030.
5G processors market grabbed a CAGR of 21.56% as per the report.
North America is stated to be the largest regional market for 5G processors in the study of the market.
Asia-Pacific is the fastest-growing regional market mentioned in the study of the market.
Samsung Electronics Co. Ltd, Apple Inc., UniSoc Communication and Hisilicon (Huawei) are the top 4 key players of the market.