How big is the 5G chip market | Industry Trends & Market Size

Q: What is the current size and forecast of the 5G chip market?

The market was valued at USD 22.7 billion in 2024 and is projected to reach USD 69.3 billion by 2031 at a CAGR of 17.1%.

Q: Which segments are driving growth?

Smartphones, automotive, industrial IoT, and telecom infrastructure are key growth areas.

Q: What are the main drivers of demand?

High-speed connectivity needs, industrial digitization, and widespread 5G rollout.

Q: What are key challenges?

Complex chip design, high R&D costs, and global semiconductor supply chain constraints.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA4828

Publication Date: Jul 2025

How big is the 5G Chip Market?

According to 6Wresearch internal database and industry insights, the 5G chip market was valued at approximately USD 22.7 billion in 2024 and is projected to reach USD 69.3 billion by 2031, growing at a CAGR of 17.1% during the forecast period.

This growth is fueled by the rapid global rollout of 5G infrastructure, rising demand for connected devices, and advancements in semiconductor manufacturing processes.

Key Growth Drivers of the 5G Chip Market

Massive 5G deployment in telecom infrastructure worldwide
Rising demand for 5G-enabled smartphones, tablets, and wearables
Emergence of smart factories, autonomous vehicles, and industrial IoT
Technological progress in mm Wave and sub-6 GHz spectrum chipsets
Strategic investments in 5G R&D and government-led 5G innovation programs

5G Chip Market Trends

5G chip market is witnessing a strong push toward integration of AI accelerators within modem chipsets for edge processing. To cut power and improve speed, the use of on-chip solution that incorporates CPU, GPU and modem, system on-chip (SoC) solutions is on the rise. To make even cheap 5G phones pervasive, smartphone producers are adding mid-range 5G processors to their smartphones. In addition, the deployment of 5G chipsets in server edge computing servers, AR/VR devices, and the next-gen routers is exploding. Multi-mode chipsets that support both 4G and 5G are also gaining traction in emerging markets.

Emerging Developments in the 5G Chip Market

Emerging developments include the launch of ultra-low-latency chips tailored for industrial automation, smart grids, and remote medical systems. Companies are working on AI-powered network slicing to dynamically allocate bandwidth. Advancements in 3nm and 4nm chip manufacturing are enabling more compact and energy-efficient 5G SoCs. Collaborations between telecom vendors and semiconductor firms are accelerating innovation in beamforming and MIMO-enabled chips. Additionally, satellite-to-device 5G chips are being developed for global rural connectivity applications.