How big is the chipset market | Industry Size, Growth & Forecast

Q: What is the current size and forecast of the chipset market?

The chipset market was valued at USD 143.5 billion in 2024 and is projected to reach USD 219.7 billion by 2031 at a CAGR of 6.5%.

Q: Which sectors are driving growth of the chipset market?

Smartphones, 5G infrastructure, data centers, automotive electronics, and IoT devices.

Q: What factors are fueling demand in the chipset market?

Need for performance, integration, power efficiency, and security in modern electronics.

Q: What challenges exist in the chipset market?

Geopolitical supply chain risks, design complexity, rising fabrication costs, and IP competition.

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: MTA5034

Publication Date: Jul 2025

How big is the Chipset Market?

According to 6Wresearch internal database and industry insights, the chipset market was valued at approximately USD 143.5 billion in 2024 and is projected to reach USD 219.7 billion by 2031, growing at a CAGR of 6.5% from 2024 to 2031.

This growth is driven by surging demand for high-performance computing, 5G adoption, IoT devices, and automotive electronics.

Key Growth Drivers of the Chipset Market

Expanding use of advanced chipsets in smartphones, tablets, and laptops
Rapid roll-out of 5G infrastructure and network equipment
Growth in connected automotive systems including ADAS and infotainment
Increasing deployment of IoT sensors and edge devices
Rising adoption of AI acceleration and data center chipset solutions

Chipset Market Trends

The chipset market is witnessing a shift toward system-on-chip (SoC) integration for mobile and IoT applications, enabling power- and space-efficient design. AI-enabled chipsets optimized for machine learning inference are gaining ground. There is rising demand for multi-core and heterogeneous architectures in gaming, HPC, and server platforms. Regional chip sovereignty trends are driving localized chipset development and foundry expansion. Additionally, chipset customization for specific verticals—like automotive and industrial—is becoming mainstream.

Emerging Developments in the Chipset Market

New work has been emerging in ultra-low-power chipsets in wearable and implantable systems, chiplets support flexible systems design. Modular high-performance solutions are gaining support in chiplet packaging, 2.5D and 3D integration. Security features can also realize protection of IoT and car systems through manufacturers incorporating the security attributes directly into the hardware. The number of open-source RISC-V chipset projects in which customization and cost-effectiveness are sought have increased. Edge AI, neuromorphic computing, and quantum accelerators are fast emerging through strategically aligned R&Ds with the chip industry.