5G Modems

Global 5G Modems Market to Reach US$8.1 Billion by 2030

The global market for 5G Modems estimated at US$2.0 Billion in the year 2024, is expected to reach US$8.1 Billion by 2030, growing at a CAGR of 26.9% over the analysis period 2024-2030. Internal Modem, one of the segments analyzed in the report, is expected to record a 24.3% CAGR and reach US$4.9 Billion by the end of the analysis period. Growth in the External Modem segment is estimated at 31.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$512.8 Million While China is Forecast to Grow at 25.6% CAGR

The 5G Modems market in the U.S. is estimated at US$512.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.2 Billion by the year 2030 trailing a CAGR of 25.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 24.2% and 23.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 18.8% CAGR.

Global 5G Modems Market – Key Trends & Drivers Summarized

Why Are 5G Modems Central to Next-Generation Connectivity Across Devices and Networks?
5G modems are critical semiconductor components that enable devices to connect to fifth-generation wireless networks, translating radio signals into digital data and vice versa. These modems act as the communications bridge between hardware (smartphones, IoT devices, laptops, vehicles) and 5G infrastructure by supporting ultra-fast data throughput, low latency, and enhanced spectral efficiency across various 5G frequency bands—including sub-6 GHz and mmWave. As 5G networks evolve to support real-time, data-intensive applications such as augmented reality (AR), autonomous vehicles, telemedicine, and industrial automation, the demand for high-performance, energy-efficient 5G modems continues to surge.

The critical role of 5G modems lies in their ability to handle multiple signal types, manage seamless handovers between 4G/5G networks, and support carrier aggregation, MIMO (multiple input, multiple output), and advanced modulation schemes. This ensures stable and ultra-fast wireless performance even in congested or highly mobile environments. Integrated 5G modems, which combine radio frequency (RF) transceivers, baseband processors, and AI-driven signal management into compact system-on-chip (SoC) designs, are driving next-gen mobility and unlocking new use cases across consumer, commercial, and industrial verticals.

How Are Modem Architectures Evolving to Meet the Demands of Power, Speed, and Versatility?
Modern 5G modems are rapidly advancing to accommodate the growing complexity and performance expectations of 5G networks. Leading chipmakers are developing multi-mode modems capable of supporting legacy 2G/3G/4G networks alongside NSA (non-standalone) and SA (standalone) 5G architectures. These multi-band, multi-protocol modems enable uninterrupted global roaming and smooth user transitions during network migration. Key innovations include support for carrier aggregation across diverse frequency bands, dynamic spectrum sharing (DSS), and uplink/downlink optimization using advanced QAM techniques.

To reduce energy consumption in battery-powered devices, low-power designs and AI-based signal processing algorithms are being integrated into modems to optimize transmission only when needed, boosting both efficiency and battery life. mmWave-compatible modems, designed for ultra-high bandwidth applications, are also becoming more compact and thermally efficient, enabling inclusion in thinner smartphones and smaller IoT form factors. Furthermore, discrete and integrated modem options allow OEMs to select the right balance between performance, cost, and design flexibility, with application-specific modems tailored for connected cars, industrial gateways, consumer electronics, and smart wearables.

What Market Trends, Product Categories, and Device Ecosystems Are Expanding 5G Modem Deployment?
The 5G modem market is expanding beyond smartphones to encompass a wide array of devices and use cases across both consumer and enterprise domains. Mobile broadband devices—including 5G routers, dongles, and customer premises equipment (CPE)—are leveraging high-speed modems to deliver fixed wireless access (FWA) in underserved or rural areas. In laptops and tablets, embedded 5G modems are enabling always-connected computing, crucial for hybrid work models and cloud-native productivity. Meanwhile, the automotive industry is rapidly integrating 5G modems into connected vehicles for vehicle-to-everything (V2X) communication, real-time navigation, in-car entertainment, and over-the-air software updates.

Industrial and enterprise applications—such as remote asset monitoring, smart factory automation, and private 5G networks—are fueling demand for rugged, high-throughput modems that support ultra-reliable low-latency communication (URLLC) and massive machine-type communication (mMTC). The proliferation of edge computing, AIoT devices, and smart city initiatives is also expanding the addressable market for 5G modems in sensors, drones, robots, and surveillance systems. Consumer electronics brands are embedding modems into AR glasses, gaming consoles, and home appliances, signaling a shift toward seamless, high-speed connectivity as a baseline expectation in both digital and physical environments.

What Is Driving the Growth of the 5G Modems Market Across Regions and End-User Segments?
The growth in the 5G modems market is driven by global 5G network expansion, rising device integration, and the diversification of high-speed connectivity use cases. In Asia-Pacific, especially in China, South Korea, and Japan, early 5G deployment, advanced semiconductor manufacturing, and aggressive OEM strategies are driving high-volume adoption of 5G modems in mobile devices and industrial gateways. China’s large-scale IoT infrastructure projects and electric vehicle ecosystem are further accelerating modem integration into embedded platforms.

In North America and Europe, demand is rising from both consumer and enterprise segments, supported by telecom rollouts, public-private 5G investments, and robust connected device markets. The U.S. is seeing rapid growth in fixed wireless access and connected vehicle platforms, while Europe’s industrial 5G push—especially in Germany and Scandinavia—is encouraging modem development for smart factories and enterprise routers. The Middle East and Latin America are adopting modems through telco partnerships, FWA services, and 5G-enabled digital inclusion programs.

Segment-wise, smartphones remain the largest application area, but non-handset categories are seeing faster growth—especially automotive, CPE, and industrial IoT. Leading chipset vendors are forming strategic partnerships with device manufacturers, telecom operators, and cloud service providers to accelerate vertical-specific 5G modem deployment. As global 5G use cases diversify and data-driven connectivity becomes foundational across industries, the 5G modems market is poised for robust, long-term expansion—powered by innovation in modem design, multi-device integration, and AI-enhanced network intelligence.

SCOPE OF STUDY:

The report analyzes the 5G Modems market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Modem Type (Internal, External); Mode (Single-Mode, Multimode); Application (Mobile & Tablets, Wearable, Automotive, Virtual Reality, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 34 Featured) -

• Analog Devices, Inc.
• Apple Inc.
• Arcadyan Technology Corp.
• ASR Microelectronics
• Broadcom Inc.
• Cavli Wireless
• Ericsson AB
• Fibocom Wireless Inc.
• Huawei Technologies Co., Ltd.
• Infineon Technologies AG
• Intel Corporation
• LG Electronics Inc.
• Marvell Technology Group Ltd.
• MediaTek Inc.
• Murata Manufacturing Co., Ltd.
• Netgear Inc.
• Nokia Corporation
• NXP Semiconductors N.V.
• Qualcomm Technologies, Inc.
• Quectel Wireless Solutions

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

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APRIL 2025: NEGOTIATION PHASE

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