Despite the chip shortage happening now, demand for 5G is only growing. According to a recent study done by FMI, the 5G chipset market is expected to reach $180 billion by 2032, which is up from $21 billion in 2022. This growth probably comes from the increasing demand for large network coverage and high-speed internet for uses like distance learning, multi-user gaming, live streaming, telemedicine and augmented reality.
5G is defined as the 5th generation of the mobile network, and it is now the global standard following 1G, 2G, 3G, and 4G networks. 5G designed to connect virtually everyone and everything together including machines, objects, and devices. This technology is also meant to deliver higher more reliability, a larger network capacity, multi-Gbps peak data speeds, ultra low latency, more reliability, increased availability and a more uniform user experience to more users.
The speed and reliability of 5G will likely have an impact on machine-to-machine (M2M) and IoT. Key reasons for the increased adoption of new M2M technologies are increased connectivity for smoother, more efficient communication and low power requirements, particularly for those who are adopting solar power or have their own on-site energy generation. In addition, mobile networks must be able to handle the billions upon billions of nodes projected to come in the next few years to even achieve effective M2M communication.
At this time, the current network capacity is not able to handle M2M and human-based communications, as well as their different communication patterns such as latency time. Because of this, a next-level cellular network for mobile communication featuring hyper-connectivity and larger bandwidth – such as 5G – is required. M2M communication technology will be widely used in heavy manufacturing industries and process industries to increase efficiency and reduce human interference with machines, for both effectiveness and safety reasons. Therefore M2M communication is expected to be the main driver behind the 5G chipset market.