According to research firm Frost & Sullivan, the market for select 5G semiconductors will reach $15.03 billion by 2025. The organization notes growth in the memory, power amplifier, and artificial intelligence (AI) segments will increase the sector’s value by 180 percent from 2019.
The consultancy also offered a few insights detailing how component companies can take advantage of 5G prompted industry digitization.
5G Component Market Growth Explained
In a press release, Frost & Sullivan Test & Measurement Industry Analyst Prabhu Karunakaran delved into the factors driving the 5G component market’s explosive growth. The expert noted fifth-generation networking technology is still early in its deployment phase. However, he said, the wider availability of broadband grade connectivity will result in the innovation’s increasing adoption.
Frost & Sullivan’s research is supported by recent 5G related acquisitions and strategic spending in the global semiconductor industry.
In March, Marvell and Analog Devices entered into a pact to develop new 5G devices for original equipment manufacturers (OEMs). In January, Tom’s Hardware reported the Taiwanese Semiconductor Manufacturing Company (TSMC) increased its annual capital expenditure by 50 percent to expand its fifth-generation smartphone chipset production capacity. That same month, Samsung bought TeleWorld Communications to acquire its 5G device portfolio.
When the world’s leading semiconductor brands take such a significant interest in new technology, its ascendance seems assured.
How Chipmakers Can Ride the 5G Wave
Frost & Sullivan’s 5G component market forecast also included key recommendations on how component makers can benefit from the rising tide created by the technology’s coming ubiquity.
The organization suggested semiconductor manufacturers partner with robotics companies and networking gear concerns to produce new automated factory solutions. As the Bureau of Labor Statistics reports nonfarm factory labor costs have risen by 5.1 percent in Q1 2020, the firm’s advisory is prudent.
The business intelligence company also said chipmakers should pursue opportunities in the healthcare field. The consultancy noted the coronavirus pandemic has prompted a sudden rise in medical industry telepresence adoption. Nvidia CEO Jensen Huang mentioned his firm experienced an uptick in chip sales because its products facilitate healthcare digitization transitions.
Frost & Sullivan’s 5G market report also stated memory, power amplifier, and AI chipmakers would be wise to invest in autonomous vehicle development. NXP Semiconductors and TSMC also believe fifth-generation networking will lead to the advent of self-driving cars as they recently announced a partnership to develop 5nm automotive processors.
Based on Frost & Sullivan’s trenchant observations about the fifth-generation network component market, it is not a matter of if 5G will change the world, but rather when it will.