According to a research conducted by P&S Intelligence, the global 5G radio frequency (RF) market generated a revenue of $112.0 million in 2019, progressing at a strong CAGR of 30.4% CAGR. The surging demand for mobile devices, increasing adoption of IoT, and rising demand for these devices from the telecom industry are the key factors leading to the growth of the market. In terms of design, the market is divided into standalone-chip transceiver and single-chip transceiver.
Between these two, the standalone-chip transceiver division accounted for the larger share of the market in 2019 and is predicted to dominate the market during the forecast period as well. These variants have the capability to work in a wireless system and with low voltage. Standalone-chip transceivers further consumer less power, which is why, the preference for these devices is higher in the 5G network infrastructure. On the basis of vertical, the market is categorized into healthcare, aerospace, telecommunications, consumer electronics, cable/broadcasting, and military & defense.
Read Full Report: 5G RF Transceiver Market Revenue Estimation and Growth Forecast Report
Out of these, the consumer electronic industry is predicted to register the fastest growth during the forecast period in the 5G RF transceiver market. Owing to the swift launching of 5G services, the integration of RF transceivers is increasing widely in smartphones and other consumer electronic devices. For example, AT&T Inc. and Verizon Communications Inc. are providing 5G cellular plans on a monthly basis for $75 and $70. This is predicted to lead to the growth of the market in the coming years.
Geographically, the 5G RF transceiver market was dominated by Asia-Pacific in the past, which can be ascribed to the expanding consumer electronics industry. In addition to the increasing uptake of wireless communication devices, swift digitization, introduction of the IoT technology, and rising requirement for video streaming are also the key factors leading to the growth of the regional market. These instruments are further being integrated in building security systems, smart farming, and home automation applications.
The growing demand for these products from the telecom sector is a key driving factor of the 5G RF transceiver market. The launch of 5G services in the U.S., China, the U.K., and South Korea is encouraging the installation of these instruments in base stations and telecom exchanges. For example, more than 86,000 base stations have been set up in 50 Chinese cities since the launch of 5G network in the country in 2019. This is leading to the high demand for 5G RF transceivers.
The increasing adoption of wideband transceivers is a key trend being witnessed in the 5G RF transceivers market. Technological advancements are the major reason for the increasing uptake of these devices. In addition to this, the rising focus on reliable, seamless, and secure communication are also driving the adoption of wideband transceivers. Wideband transceivers provide long-range wireless connectivity and also eliminate the requirement for redesigning.
Hence, the market is being driven by the rising demand for 5G RF transceivers from the telecom industry and increasing adoption of wideband transceivers.
