5G Processor Market Analysis

5G Processor Market Overview

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 2032 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.

COVID 19 Analysis:

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.

5G Processor Dynamics:

Market Drivers:

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.

Market Opportunities:

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.

Market Restraints:

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.

Market Challenges:

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 2032 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.

5G Processor Segment Overview:

5G Processor Type Outlook:

• Modem


• RFIC


• RF transceiver


• RF front end

5G Processor Process Node Outlook:

• Less than 10 nm


• 10–28 nm


• Above 28 nm

5G Processor Frequency Outlook:

• Sub-6 GHz


• 24–39 GHz


• Above 39 GHz

5G Processor End-user Outlook:

• Telecommunications


• Macrocell base station


• Small cell


• CPE


• Mobile Devices


• Smartphone


• Laptops & Tablets


• Mobile Hubs


• Robots


• Wearables


• AR/VR


• Non-mobile Devices


• IoT Gateways


• Surveillance cameras


• Automobile


• Cellular V2X

5G Processor Regional Insights:

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.

5G Processor Competitive Landscape:

• Qualcomm (US)


• Huawei (China)


• Samsung Electronics (South Korea)


• MediaTek (Taiwan)


• UNISOC (China)


• Skyworks (US)


• Qorvo (US)


• Analog Devices (US)


• Broadcom (US). 

Recent Developments:

In March 2024, Qualcomm announced its plans for the release of a new processor, Chip; it is expected to be Snapdragon 8s Gen 3 and will be positioned as a flagship product. The next-generation devices’ performance and functionalities are set to be improved by this advanced SoC, which should stimulate market growth. This latest product will make use of cutting-edge technology that makes it possible for manufacturers and end users to have access to faster processing speeds, increased energy efficiency, and better connectivity features offered by the Snapdragon 8s Gen 3. High-performance oriented smartphone, tablet, and IoT markets; therefore, Qualcomm’s presence in these sectors will expand exponentially due to this innovation.

By March 2024, Qualcomm had reported its desire to launch Rs 10,000, a 5G phone, before the year ran out. The company confirmed that they were working with telecom companies and manufacturers in India to create affordable smartphones like these ones. Hence, this measure would greatly widen the market due to the fact that more people can afford to buy phones that support the fifth-generation connection standards, as well as propel the introduction of such services and help the mobile telephone market grow significantly.

HFCL has joined forces with Taiwanese fabless semiconductor company MediaTek, which intends to incorporate the MediaTek T750 chipset into its indoor residential consumer solutions (CPE) that support 5G technology. By doing so, HFCL’s CPE will perform much better, enabling customers to enjoy quicker connections along with other benefits associated with reliable links within telecommunication networks. Leveraging on its partner’s advanced chipsets technology, HFCL can provide superior products concerning fifth-generation mobile communications, thereby stimulating sales volumes through meeting such stakeholder demand as the growing need for high-speed Internet connections at home or other premises. This strategic partnership positions HFCL within an expanding global next-generation (5G) ecosystem while further cementing its place as an innovator in the cutting-edge communication solutions industry.

Qualcomm Incorporated revealed the Snapdragon X55 5G modem in February 2019. The new modem supports both mmWave bands and sub-6GHz. Similarly, several other huge companies are spending on R&D activities to develop new multi-mode 5G chipset portions.

In November 2023, MediaTek Inc. introduced the power-efficient Dimensity 8300 chipset for high-end 5G smartphones. Dimensity 8300 combines generative AI features, adaptive gaming technology, power-efficient solutions, and rapid connectivity to deliver top-tier experiences tailored for premium 5G smartphones.

Report Overview:

This report has covered:

• Market Overview


• COVID 19 Analysis


• Market Dynamics


• Cumulative Growth Analysis


• Value Chain Analysis


• Segment Overview


• Regional Analysis


• Competitive Landscape


• Recent Developments