ResearchAndMarkets in its latest report expects the 5G mmWave chipset market to reach $56.3 billion by 2026, at a CAGR of 37.3% in next 5 years. The study focussed on the mmWave 5G chipset value chain that includes mmWave 5G baseband processor/modem, RF transceiver, and RF front end suppliers.
Mobile devices are expected to be the major contributors in mmWave 5G chipset market because of growing availability of 5G mmWave enabled smartphones and other consumer devices. The use of mmWave delivers wide spectrum and capacity over the shortest distances for 5G along with lower latencies. High bands above 24 GHz are allocated for 5G telecom infrastructure, but the availability of the new spectrum depends on how much spectrum is released by regulators for use by service providers.
Spectrum allocations for mmWave are often extremely wide, with 800 MHz or more per service provider and band. Wide spectrum enables the provision of high-capacity delivery and improved handling of peak rates. The US market is a global leader in the use of mmWave spectrum for 5G, with all major US operators already offering commercial 5G services using the band. Limited 5G mmWave deployments have been witnessed in Asia Pacific while Europe is far behind.
5G chipsets are poised to become an integral part of the 5G-enabled products, such as smartphones, tablets, C-V2X devices, and CPEs.
Even the start-up ecosystem has been growing rapidly in this market. Recently, Sivers Semiconductors has announced an acquisition of start-up company MixComm in a transaction worth $135 million. The move represents an investment by Sweden-based Sivers into the market for 5G in mmWave spectrum bands.