Modems (baseband chips)

Main Article: Semiconductors (Global Market)

2024: Global Communications Chip Market Exceeds $418 Billion for the Year

In 2024, costs in the global semiconductor components market in the field of communications reached $418.28 billion. This is 5.5% more compared to 2023, when the volume of the corresponding segment was estimated at $396.66 billion. Such data are given in the Market Research Future study, the results of which were published in early February 2025.

Analysts call the rapid development of communication technologies the key driver of the industry in question. The growing demand for high-speed Internet access and the increase in the amount of information generated is forcing manufacturers to invest heavily in research and development in the field of advanced chips. The market is also boosted by the construction of 5G cellular networks that support high data rates with minimal delays. Telecommunications companies require advanced semiconductor components and 5G products are priced higher compared to 4G counterparts, resulting in a larger sector as a whole.

Another important factor ensuring an increase in sales of communication chips is the expansion of the global Internet ecosystem, including the rapid development of the Internet of Things (IoT). Virtual and augmented reality technologies, remote work and distance learning platforms, telemedicine systems and other advanced tools reinforce the need for reliable communication solutions. Plus, the wireless communication infrastructure is actively developing. Meanwhile, the trend towards automation and integration of artificial intelligence opens up additional opportunities for chip manufacturers.

The study also talks about an increase in the penetration of all kinds of mobile devices, including smartphones and tablets. Communication chips are also widely used in smart home equipment and smart cars with an Internet connection. However, technological advances lead to the emergence of chips with reduced power consumption and improved technical characteristics.

The authors of the report identify four main market segments: telecommunications, consumer electronics, network equipment and data centers (data centers). In 2024, the costs of the first of these areas amounted to $150 billion. Chips for consumer electronics brought in $120 billion, for network solutions - $90 billion. Data center equipment provided $58.28 billion. The following are named as major players in the industry:

• Infineon Technologies;
• Intel;
• Broadcom;
• NXP Semiconductors;
• MediaTek;
• Micron Technology;
• Skyworks Solutions;
• Qualcomm;
• Samsung;
• Renesas Electronics;
• Texas Instruments;
• STMicroelectronics;
• Analog Devices;
• Nvidia.

From a geographical point of view, in 2024, the Asia-Pacific region was in the lead thanks to the rapidly developing electronics sector and a large consumer base: the costs here are estimated at $150 billion. In second place with expenses of $125 billion is North America, where there is an active introduction of advanced communication technologies, supported by a high level of penetration of smartphones. Europe closes the top three with an estimate of $90.0 billion: analysts point to significant investments in the telecom sector. South America secured a contribution of $30 billion, the Middle East and Africa - approximately $23.28 billion.

According to Market Research Future analysts, in the future, the CAGR (compound percentage CAGR) in the market under consideration will be about 5.45%. Thus, by 2035, spending on a global scale may increase to $749.86 billion.^[1]

2021: Market growth 19.5% to $31.4 billion

The global market for baseband chips (modems used to connect mobile and other devices to cellular networks) in 2021 amounted to $31.4 billion, which is 19.5% more than a year earlier. Such data researchers Strategy Analytics released in April 2022.

According to analysts, products with support for 5G networks in 2021 accounted for about 66% of modem sales in money, and the growth of this segment was 71%.

Baseband Chip Market Leaders

Qualcomm remained the leader in the baseband chip market in 2021, which delivered more than 800 million chips during this 12-month period. The leadership of the American company is facilitated by the supply of X60 modems for the iPhone 13 and solutions for expensive Android devices.

Qualcomm has also gained significant popularity in non-mobile phone segments such as cars, IoT, cellular tablets, fixed wireless access, etc., thanks to a diverse set of baseband chips, said Strategy Analytics Deputy Director Sravan Kundojjala

The study says that MediaTek, Qualcomm and Unisoc were able to increase market shares in 2021, while Intel, HiSilicon and Samsung LSI, by contrast, experienced a decline.

Shravan Kundozhayala says modem shipments MediaTek at the end of 2021 have more than tripled thanks to orders for 5G chips for Samsung devices and Chinese partners. In addition, MediaTek focused on the LTE segment - solutions of the initial and middle levels and took part of the share from Qulacomm in the modem market for, the smartphones expert added.

The study also said that the developers of baseband chips for the Internet of Things ASR Microelectronics, Nordic Semiconductor, Sequans and Sony were able to show good results, despite problems with the supply of silicon wafers.^[2]

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