SAN MATEO, Calif .– (COMMERCIAL THREAD) – Two new forecasts from International Data Corporation (IDC) shed light on the tremendous opportunity of 5G-related semiconductors in smartphones and macrocellular base transceiver (BTS) stations for the period 2021-2025. Over the next five years, the cumulative market size of RF processors and components in 5G smartphones will be $ 231 billion, while analog, signal processing and 5G RF network semiconductors in 5G macrocells will be $ 29 billion.
The growing complexity of RF in mobile phones concentrates all semiconductor growth among RF components, while processors – discrete and integrated application and baseband processors – will experience relatively flat growth. Among 5G phones in particular, processors will have a five-year compound annual growth rate (CAGR) of 17%, while for RF components it will be 32%.
“The addition of mid-range spectrum, more carrier aggregation capabilities and, in some cases, mmWave modules creates many new revenue opportunities in 5G phones,” said Phil solis, Research Director, Connectivity and Smartphone Semiconductors at IDC. “The potential of this market will increase as Chinese OEMs expand globally with support for more RF bands and mmWave 5G phones become accepted. Catalysts for the mmWave module include Apple’s inclusion of mmWave modules in all of its US smartphones, the construction of mmWave networks in more countries, and impending mmWave products from semiconductor vendors for mobile phones other than Qualcomm. ”
Global revenue attributable to the semiconductor content of 5G macrocellular base stations will grow from $ 4 billion in 2020 to $ 6 billion in 2025. Types of semiconductors include communications processors, RF power amplifiers, transceiver semiconductors in radio antennas and baseband units for BTS 5G macrocells.
“Macrocellular base transceiver stations capable of processing new radio signals are the primary tools for delivering high-bandwidth, low-latency 5G services over a large service area, and C-band spectrum offers characteristics of optimal capacity and coverage to accelerate the transformation of mobile communications ”mentioned Ben sheen, research director for Enabling technologies: network and communications infrastructure at IDC. “Continuing to deploy the mmWave small cell layer on top of existing networks in an overlay architecture will increase network capacity and bandwidth to meet breakthrough 5G performance goals. ”
Apart from 5G phones and macrocells, the growth of the 5G semiconductor market will come from 5G small cells, repeaters and client equipment (CPEs) as well as 5G compatible PCs, media tablets, cars and a long tail of IoT products. 5G smartphones and radio access network (RAN) infrastructure are where 5G semiconductor revenue is concentrated.
The report, Global Cell Phone Semiconductor Forecast, 2021-2025 (IDC # US47691421), includes market forecasts for various processors and RF components in all mobile phones as well as 5G phones themselves. Another report, Global Macrocell 5G Base Transceiver Station Semiconductor Forecast, 2021-2025: US Demand for C-Band Spectrum and High-End Chips Released to Increase Revenue (IDC # US47635821), provides IDC Semiconductor Market Forecast for 5G Macrocell Base Station in Wireless Communication Infrastructure. Revenue forecast is for analog and digital RF components for 5G radio and baseband units. The reports also assess market conditions with engines and inhibitors and provide advice to technology providers.
International Data Corporation (IDC) is the world’s leading provider of business information, consulting services and events for the information technology, telecommunications and consumer technology markets. With more than 1,100 analysts worldwide, IDC provides global, regional and local expertise in technology, benchmarking and IT procurement, as well as industry opportunities and trends in more than 110 countries. IDC’s insight and insight helps IT professionals, business leaders, and the investment community make fact-based technology decisions and achieve their core business goals. Founded in 1964, IDC is a 100% subsidiary of International Data Group (IDG), a global leader in technology media, data and marketing services. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to IDC Blog for industry news and ideas.
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