Commercialization of the 5G technology across the globe to fuel the global 5G chipset market
Various telecom operators as well as chipset manufacturers are investing significantly in research and development activities for commercialization of the 5G technology. Telecom operators are collaborating with various network equipment providers as well as service providers to accelerate the commercialization of 5G. In November 2018, Huawei, a prominent network equipment company, announced to have signed 22 commercial contracts for 5G. The company is currently working with more than 50 carriers on 5G commercial trials. Furthermore, various chipmakers are introducing advanced 5G chipsets in the market in order to accelerate the adoption of 5G across the globe. For instance, in December 2018, Qualcomm, a prominent chipmaker launched its flagship Snapdragon 855 chip, which would facilitate use of the 5G technology in mobile phones.
Rising demand for high speed to propel the global 5G chipset market
Demand for high-speed Internet has been increasing globally for the last few years, especially in developing economies such as India and China. The primary factor responsible for this rise in demand is the increase in demand for on-demand video streaming. In order to satisfy this surging demand for high-speed data, smartphone makers are engaging in the development of smartphones with 5G capabilities. Furthermore, chipmakers are forming partnerships with phone manufacturers to provide them with 5G chipsets to be installed in their smartphones. For instance, Qualcomm, a leading chipmaker, has partnered with 19 phone makers to supply 5G chipsets to them.