The 5G Modems Market size was estimated at USD 6.5 billion in 2023 and is projected to reach USD 19.5 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 16.00% during the forecast period (2024-2030).

5G Modems Market

Market Summary

The 5G modems market is a critical segment within the semiconductor and electronics industry, driven by the global rollout and adoption of fifth-generation wireless technology. 5G modems are specialized chipsets that enable devices to connect to 5G networks, facilitating high-speed data transmission, low latency, and massive device connectivity. These components are integral to smartphones, tablets, laptops, IoT devices, and various other connected products. The market is characterized by rapid technological advancements, intense competition among key semiconductor players, and growing demand across multiple verticals including telecommunications, automotive, healthcare, and industrial automation. As networks evolve from Non-Standalone to Standalone architectures, the capabilities and requirements for 5G modems continue to expand, fostering innovation and new product developments. The industry is also influenced by geopolitical factors, supply chain dynamics, and standardization efforts led by organizations such as 3GPP. Enterprises and investors are closely monitoring this market due to its strategic importance in the broader digital transformation ecosystem and its role in enabling next-generation applications like autonomous driving, augmented reality, and smart cities.

Key Highlights

The 5G modems market showcases several pivotal developments that underscore its growth and significance. Leading semiconductor companies such as Qualcomm, MediaTek, Samsung, and Intel are at the forefront, introducing advanced modem solutions with support for millimeter-wave and sub-6 GHz?? bands. Integration of artificial intelligence and machine learning capabilities into modem designs is emerging as a key trend, enhancing power efficiency and network performance. The transition to 5G Standalone networks is accelerating, demanding modems with improved latency and reliability features. Furthermore, the expansion of 5G infrastructure in emerging economies is creating new growth avenues. Another highlight is the increasing adoption of 5G modems in non-handset applications, including fixed wireless access terminals, automotive telematics, and industrial IoT gateways. Partnerships and collaborations between modem suppliers, device OEMs, and network operators are strengthening ecosystem development. Additionally, advancements in semiconductor manufacturing processes, such as the shift to 5nm and 3nm nodes, are enabling more compact and energy-efficient modem designs, which is crucial for battery-powered devices.

Drivers, Opportunities & Restraints

The growth of the 5G modems market is propelled by several key drivers. The escalating demand for high-speed internet and low-latency connectivity across consumer and enterprise segments is a primary factor. The proliferation of IoT devices and the advent of Industry 4.0 are further accelerating adoption, as 5G modems provide the necessary backbone for massive machine-type communications. Government initiatives and investments in 5G infrastructure development, particularly in regions like North America, Asia Pacific, and Europe, are also significant drivers. Opportunities abound in the integration of 5G with emerging technologies such as edge computing, which enhances real-time data processing capabilities. The automotive sector presents substantial growth potential with the rise of connected and autonomous vehicles requiring robust telematics solutions. However, the market faces restraints including high development costs and complexity associated with 5G modem design and testing. Supply chain disruptions and geopolitical tensions impacting semiconductor availability can hinder market progress. Additionally, concerns regarding power consumption and heat dissipation in compact devices pose technical challenges that manufacturers must address to ensure widespread adoption.

Concentration Insights

The 5G modems market exhibits a concentrated competitive landscape dominated by a few major players who possess significant technological expertise and intellectual property portfolios. Qualcomm Incorporated maintains a leadership position with its Snapdragon modem series, widely adopted in premium smartphones and other devices. MediaTek has gained substantial market share through competitive offerings targeting mid-range and entry-level segments. Samsung Electronics leverages its vertical integration capabilities, supplying modems for its own devices while also engaging in external partnerships. Intel Corporation, although having exited the smartphone modem business, remains active in other areas such as laptops and network infrastructure. Huawei?s HiSilicon unit is a notable player, though its reach is affected by trade restrictions. Other companies like Unisoc are emerging, particularly in cost-sensitive markets. This concentration is driven by high barriers to entry including extensive R&D investments, patent licensing requirements, and the need for close collaboration with network operators for certification. The market is also seeing increased competition from fabless semiconductor firms and potential new entrants focusing on niche applications.

Type Insights

5G modems are categorized based on their integration level and supported frequency bands. Integrated modems, which are combined with application processors in a system-on-chip design, are prevalent in smartphones and offer benefits in terms of size, power efficiency, and cost. Discrete modems, separate chipsets, provide flexibility for device manufacturers and are common in modules for IoT and automotive applications. Another classification is based on spectrum support: sub-6 GHz modems dominate initial deployments due to better coverage and penetration, while millimeter-wave modems enable ultra-high speeds in dense urban areas but require more complex antenna systems. Modems are also differentiated by their capability to support various 5G deployment modes, including Non-Standalone, which relies on existing 4G infrastructure, and Standalone, which operates independently on a 5G core network. Additionally, there are modems optimized for specific use cases such as reduced capability modems for IoT sensors that prioritize low power consumption over high throughput. The evolution towards multi-mode modems supporting 2G through 5G ensures backward compatibility and smooth network transitions.

Application Insights

The application landscape for 5G modems is diverse and expanding rapidly. Smartphones represent the largest segment, with virtually all new flagship and mid-range models incorporating 5G connectivity. Tablets and laptops are increasingly adopting 5G modems to enable always-connected computing experiences. Fixed wireless access terminals utilize 5G modems to deliver broadband internet in areas lacking fiber infrastructure, offering a competitive alternative to traditional wired services. In the automotive industry, 5G modems are critical for connected car services, enabling features such as real-time navigation, over-the-air updates, and vehicle-to-everything communication essential for autonomous driving. The industrial sector employs 5G modems in IoT devices for smart manufacturing, predictive maintenance, and supply chain optimization. Healthcare applications include remote patient monitoring and telemedicine solutions that rely on reliable, high-speed connectivity. Additionally, augmented and virtual reality devices leverage 5G modems to stream high-resolution content without latency issues. The proliferation of smart city initiatives further drives demand for 5G modems in applications like traffic management, public safety, and environmental monitoring.

Regional Insights

Geographically, the 5G modems market demonstrates varied dynamics across regions. North America is a leading market, characterized by early 5G network deployments, high smartphone penetration, and strong presence of key players like Qualcomm and Intel. The United States and Canada are at the forefront, with significant investments from telecommunications operators. Asia Pacific is the fastest-growing region, driven by massive adoption in China, South Korea, and Japan. China, in particular, is a major hub for both consumption and manufacturing of 5G-enabled devices. Countries like India are rapidly expanding their 5G infrastructure, creating substantial opportunities. Europe shows steady growth, with countries such as Germany, the UK, and France actively promoting 5G rollouts supported by government initiatives and EU policies. The Middle East and Africa are emerging markets, with Gulf Cooperation Council countries leading in adoption while other regions gradually invest in infrastructure. Latin America is also witnessing increasing deployment, though at a slower pace compared to other regions. Each region faces unique challenges including regulatory frameworks, spectrum allocation policies, and varying levels of consumer readiness which influence market progression.

Company Insights

The competitive landscape of the 5G modems market is shaped by several prominent companies, each bringing distinct strengths and strategies. Qualcomm Technologies is a dominant force, renowned for its Snapdragon modems that support advanced features like carrier aggregation and mmWave. Their extensive patent portfolio and partnerships with smartphone OEMs solidify their market position. MediaTek has emerged as a strong competitor, offering Dimensity series modems that cater to a broad price spectrum, gaining significant traction in Asia and other emerging markets. Samsung Electronics develops Exynos modems, used internally in Galaxy devices and supplied to select partners, benefiting from vertical integration. Intel provides 5G solutions for PCs and network infrastructure, focusing on areas like fixed wireless access. Huawei?s HiSilicon designs Balong modems primarily for its own devices, though external sales are limited due to trade restrictions. Unisoc targets the entry-level and IoT segments with cost-effective solutions. Other players include Sequans Communications and Sierra Wireless, who specialize in modules for IoT applications. These companies continuously invest in R&D to enhance performance, reduce power consumption, and support new 3GPP releases, while also navigating complex intellectual property and regulatory environments.

Recent Developments

The 5G modems market has witnessed several significant developments in recent times. Major players have launched next-generation products with improved capabilities; for instance, Qualcomm introduced the Snapdragon X75 modem with AI enhancements for superior connectivity and power management. MediaTek expanded its Dimensity portfolio with modems supporting new frequency bands and satellite connectivity features. There has been a surge in partnerships, such as collaborations between modem suppliers and automotive manufacturers to integrate 5G into new vehicle models. Network operators worldwide are accelerating the deployment of 5G Standalone cores, which necessitates compatible modem upgrades. Additionally, the industry is seeing increased focus on sustainability, with efforts to design modems that consume less power and utilize environmentally friendly materials. Geopolitical events continue to influence the market, affecting supply chains and access to certain regions. Furthermore, advancements in testing and certification processes ensure that modems meet stringent performance and compliance standards. The emergence of open RAN initiatives is also prompting modem suppliers to adapt to more interoperable network architectures, potentially reshaping competitive dynamics.

Report Segmentation

This comprehensive market research report on the 5G modems industry provides detailed segmentation to offer actionable insights for stakeholders. The report is segmented by type, distinguishing between integrated and discrete modems, as well as by supported spectrum including sub-6 GHz and mmWave variants. Application segmentation covers smartphones, tablets and laptops, fixed wireless access devices, automotive and transportation systems, IoT modules, industrial equipment, and other emerging applications. Geographical segmentation includes in-depth analysis of North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa, with further breakdowns for key countries within each region. The report also segments the market based on deployment mode, examining requirements for both Non-Standalone and Standalone 5G networks. Additionally, it provides insights into different industry verticals adopting 5G modem technology, such as telecommunications, healthcare, manufacturing, and consumer electronics. This multi-faceted segmentation enables readers to understand specific market dynamics, identify growth opportunities, and make informed decisions tailored to their strategic objectives.

FAQs

What is the difference between 5G and 4G modems? 5G modems are designed to operate on fifth-generation networks, offering significantly higher data speeds, lower latency, and greater capacity compared to 4G modems. They support advanced features like network slicing,??? frequencies, and massive MIMO, enabling new applications such as autonomous vehicles and immersive AR/VR experiences that are not feasible with 4G technology.

Which companies are leading in the 5G modem market? The market is led by Qualcomm, MediaTek, Samsung, and Intel. Qualcomm holds a strong position with its Snapdragon series, while MediaTek has gained substantial share in the mid-range segment. Samsung supplies modems for its devices, and Intel focuses on infrastructure and PC applications.

How do 5G modems impact battery life in devices? 5G modems can consume more power than their 4G counterparts due to higher data processing requirements and support for multiple frequency bands. However, advancements in semiconductor technology, power management algorithms, and integrated designs are continuously improving energy efficiency to mitigate battery drain in smartphones and other mobile devices.

What are the key applications of 5G modems beyond smartphones? Beyond smartphones, 5G modems are critical for fixed wireless access systems, connected cars, industrial IoT devices, laptops, tablets, and augmented reality equipment. They enable high-speed connectivity for smart cities, telemedicine, remote monitoring, and automated manufacturing processes.

How does the rollout of 5G networks affect modem adoption? The expansion of 5G infrastructure directly drives modem adoption, as devices require compatible modems to access network services. Regions with extensive 5G coverage see faster uptake of 5G-enabled devices, while areas with limited deployment may experience slower adoption rates until network availability improves.

What are the challenges in developing 5G modems? Key challenges include managing design complexity, ensuring compatibility with global spectrum bands, meeting power consumption targets, obtaining necessary certifications from carriers and standards bodies, and navigating intellectual property landscapes. Supply chain issues and geopolitical factors also pose significant development and production hurdles.

Citius Research has developed a research report titled “5G Modems Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• 5G Modems Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The 5G Modems Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

5G Modems Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

5G Modems Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of 5G Modems Market
• Research Methodology
• Executive Summary
• Market Dynamics of 5G Modems Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of 5G Modems Market
• Cost and Gross Margin Analysis of 5G Modems Market
• 5G Modems Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “5G Modems Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

5G Modems Market Key Stakeholders

Below are the key stakeholders for the 5G Modems Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

5G Modems Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the 5G Modems Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the 5G Modems Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in 5G Modems Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

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