Market Trends of Global 5G Chipset Industry
Industrial Automation to Account for a Significant Share
- According to Capgemini, three out of every ten automotive plants have become smart in the last 18-24 months. Furthermore, 80% of automakers believe 5G will be critical to their digital transformation over the next five years. For instance, Ericsson and Audi are conducting field trials, such as wirelessly connected production robots building a car body at the latter company's production lab in Gaimersheim, Germany, using simulated processes similar to those used at its headquarters in Ingolstadt.
- The emphasis on smart manufacturing practices is a significant trend influencing the market. According to IBEF data, the Government of India has set an ambitious target of increasing manufacturing output contribution to GDP to 25% by 2025, up from 16%. The Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 initiative aims to raise awareness of Industry 4.0 in the Indian manufacturing industry and assist stakeholders in addressing smart manufacturing challenges.
- The Industry 4.0 revolution, or industrial internet of things (IIOT) is making a dent in the automotive, manufacturing, warehousing, and logistics sectors by leveraging smart machines and real-time analytics on data produced by dumb machines. However, automation created several challenges in these sectors. Expected operational improvements proved hard to match due to a lack of integration with the required hardware. For instance, automation contributes to just 1% of manufacturing GDP in India, compared to around 5% in developed countries. This stems from a gap in suitable technology available for adoption. Further, According to GSMA By 2025 the total number of consumer and industrial Internet of Things (IoT) connections in North America is forecast to grow to 5.4 billion
- 5G has garnered significant interest considering the promised benefits within industrial environments. Since 3GPP's Release 16, key capabilities for enterprise 5G (such as 99.999% network availability and reliability, sub-10 milliseconds latencies, and Internet support for time-sensitive networking) has attracted ,industrial players for digitization in the context of Industry 4.0.
- For example, ABB and Ericsson collaborated to realize Thailand's Industry 4.0 ambition and facilitate future flexible production with automation systems and wireless communications. The focus areas include ABB's Robotics & Discrete Automation, Industrial Automation, and Motion business areas and ABB Ability TM Platform Services. The collaboration would cover 5 G-enabled andAugmented Reality Lenses for remote commissioning in manufacturing environments G-enabledand global NB-IoT connected motors and drives through Ericsson Communication Service Provider partners and its IoT-Accelerator platform.
North America to Account for the Largest Share
North America is one of the most important market growth regions. The United States has contributed the majority of the region's market share. The demand for IoT, M2M communications, mobile broadband, and other emerging applications is driving the increase.
In North America, 5G connections will represent more than half of all mobile connections, according to GSMA Intelligence's 'Mobile Economy North America 2020' report. By 2025, 51% of the region's 426 million mobile connections will be on 5G networks. According to the report, the region will have 340 million mobile subscribers by 2025.
Furthermore, according to Cisco Annual Internet Report, the average smartphone connection speed in the United States will be 81.1 Mbps by 2023, up from 19.2 Mbps in 2018, 4.2-fold growth (33% CAGR). Alongside 5G rollouts, operators are also pursuing ambitious network transformation strategies. Moreover, 18 global telecom and consumer device makers partnered with US-based Qualcomm for their 5G chipset.
New safety-sensitive applications, collectively known as V2X or Vehicle-to-Everything, will be made possible by 5G's enhanced throughput, dependability, availability, and decreased latency. To facilitate the convergence of various apps for urban, suburban, and highway driving circumstances, 5G Cellular V2X (C-V2X) offers a common wireless network.
