According to some recent reports, the 5G chipset market is expected to grow over 50% to $23.5 billion in the next seven years. In this piece, we present 3 5G stocks that are likely to benefit from the emerging trend.
Rapid growth expectations
According to a recent market research report, the 5G chipsets market is estimated to expand at a compound annual growth rate (CAGR) of 52.7% from this year to 2027 and will be worth around $23.5 billion.
Such rapid growth expectations for the 5G market are mostly based on the rising demand for high-speed data services, fast-developing smartphone technology, as well as the growth of IoT & connected devices. Still, the growth of the market is partly limited because of the expensive equipment, a fragmented spectrum harmonization model and emerging cybersecurity issues.
Based on the application, the largest share of the 5G chipset market this year is likely to fall under the smart cities section. The 5G network is utilized in facing key problems in smart cities, including infrastructure and housing management, providing quick access to services, transportation and logistics, public security and surveillance, efficient services management, intelligent mobility, environment & pollution control and more.
When it comes to the chipset type, the largest portion of the 5G chipset market is expected to fall under the application-specific integrated circuits segment. A big part of this segment is mainly accounted for its low cost of manufacturing for large volume production, better efficiency, higher performance compared to other ICs, and higher adoption by mobile network providers for cutting costs.
Based on frequency, the sub 6Ghz segment is projected to control the largest portion of the overall 5G chipset market this year. On the other hand,
