5G Modems

5G Modems Market Outlook

The global 5G modems market is anticipated to reach an impressive valuation of approximately USD 7.3 billion by 2035, growing at a robust compound annual growth rate (CAGR) of 23.8% during the forecast period from 2025 to 2035. This growth is driven by the increasing demand for high-speed internet connectivity across various sectors, including telecommunications, automotive, and smart device manufacturing. The widespread adoption of 5G technology in urban areas has further propelled this market, as consumers and businesses alike seek faster data transfer rates, lower latency, and improved connectivity options. Additionally, the integration of 5G technology into emerging applications such as IoT devices and smart home technology is creating new avenues for market expansion. As telecommunication companies continue to roll out their 5G networks, the demand for compatible modems is expected to surge, spurring innovation and competition within the industry.

Growth Factor of the Market

One of the primary growth factors for the 5G modems market is the significant increase in mobile data traffic, driven by the proliferation of smartphones, IoT devices, and the growing trend of remote work. As more devices become interconnected, the need for high-speed, reliable internet access has become crucial, pushing manufacturers to develop advanced modem solutions that leverage 5G capabilities. Furthermore, the continuous advancements in semiconductor technology have led to more efficient and compact modem designs, catering to the diverse needs of consumers and businesses. The favorable policies from governments encouraging digital transformation also play a critical role in propelling the market forward. Additionally, the increasing investments in infrastructure development and smart city initiatives across various regions are expected to further boost the demand for 5G modems, solidifying their essential role in the future of connectivity.

Key Highlights of the Market

• The 5G modems market is projected to grow at a CAGR of 23.8% from 2025 to 2035.
• Standalone modems are anticipated to dominate product offerings due to their enhanced performance.
• The smartphone application segment is expected to hold the largest market share owing to the high consumer demand.
• North America is predicted to lead the regional market, driven by significant investments in 5G infrastructure.
• The proliferation of IoT and smart home devices is creating new opportunities for 5G modem integration.

By Product Type

Standalone Modems:

Standalone modems are expected to be a significant segment within the 5G modems market, primarily due to their ability to provide dedicated and optimized performance for various applications. These modems operate independently and can connect to 5G networks without relying on other devices. The growing trend of high-bandwidth applications, such as 4K video streaming and online gaming, is propelling the demand for standalone modems that can efficiently handle extensive data loads and deliver seamless connectivity. Furthermore, they are often equipped with advanced features like enhanced security protocols and faster data processing capabilities, making them an attractive choice for both consumers and enterprises. As manufacturers continue to innovate and improve the technology behind standalone modems, their adoption is likely to increase significantly in the upcoming years.

Integrated Modems:

Integrated modems, which combine the functionality of the modem and the device it serves, are also gaining traction in the 5G modems market. These modems are often embedded within smartphones, laptops, and other devices, allowing for more compact designs and improved energy efficiency. The rise in consumer demand for sleek and portable devices is driving manufacturers to adopt integrated modem solutions that can provide high-speed connectivity without compromising on design. Additionally, integrated modems reduce the complexity of device assembly and enable faster time-to-market for new products. As manufacturers continue to push for smaller form factors and better performance in their devices, integrated modems are expected to play a critical role in the future of wireless communication technologies.

By Application

Smartphones:

The smartphone segment is projected to be a major contributor to the growth of the 5G modems market, driven by the relentless demand for faster internet connectivity and enhanced mobile experiences. With the global smartphone user base expanding rapidly, the need for devices equipped with advanced 5G modems is becoming increasingly critical. Telecom operators are rolling out 5G networks, and manufacturers are responding by integrating 5G modems into new smartphone models to cater to tech-savvy consumers. The trend towards immersive applications like augmented reality (AR) and virtual reality (VR), which require high-speed data transmission, is further enhancing the demand for smartphones with robust 5G capabilities. As competition among smartphone manufacturers intensifies, the integration of cutting-edge 5G modems has become a key differentiator in attracting consumers.

Laptops:

Laptops are increasingly becoming a vital application area for 5G modems, driven by the rise of remote work and the need for reliable, high-speed internet access. The move towards cloud-based applications and services has made it essential for laptops to incorporate 5G connectivity, offering users the flexibility to work from virtually anywhere without being tethered to a fixed internet connection. Manufacturers are actively integrating 5G modems into their latest laptop models to enhance performance and allow seamless connectivity in various environments, whether at home, in a café, or on the go. This integration not only enables faster download and upload speeds but also enhances user experience, making laptops equipped with 5G modems increasingly popular among professionals, students, and digital nomads alike.

Tablets:

Tablets are also witnessing a surge in demand for 5G modems as users seek versatile devices capable of accommodating both work and leisure activities. The increasing reliance on streaming services, online gaming, and educational applications has created a substantial need for high-speed internet access on tablets. Integrating 5G technology into tablets allows users to experience faster browsing and streaming without the limitations of traditional Wi-Fi connections. As a result, tablet manufacturers are incorporating 5G modems into their latest products to meet consumer expectations for greater connectivity and performance. The rise of remote learning and the growing trend of mobile computing are expected to further drive the adoption of 5G modems within the tablet segment.

IoT Devices:

The IoT devices application segment is set to witness substantial growth as 5G technology enables enhanced connectivity for a vast array of smart devices. The ability to connect multiple devices in real-time with low latency and high reliability makes 5G modems ideal for IoT applications. From smart home devices such as security cameras and appliances to industrial IoT applications involving sensors and machinery, the implementation of 5G technology is revolutionizing the way devices communicate. As the number of connected IoT devices continues to grow exponentially, manufacturers are increasingly integrating 5G modems into their offerings to capitalize on this trend. This integration is essential for enabling advanced functionalities such as remote monitoring, predictive maintenance, and automation, making 5G modems a critical component in the evolution of IoT technologies.

Smart Home Devices:

Smart home devices represent a rapidly expanding application area for 5G modems, as consumers increasingly seek to enhance their living environments with interconnected technology. The integration of 5G modems in smart home devices allows for seamless communication and control, enabling users to manage their homes efficiently through smartphones or voice-activated systems. As more homes adopt smart lighting, security systems, and environmental controls, the demand for reliable, high-speed connectivity becomes paramount. 5G technology not only facilitates faster device communication but also supports a greater number of simultaneously connected devices, which is essential for creating a fully integrated smart home ecosystem. Manufacturers are keen to embed 5G modems in their smart home products, recognizing the potential for enhanced user experiences and greater functionality.

By Distribution Channel

Online Stores:

The online stores distribution channel is witnessing remarkable growth in the 5G modems market as consumers increasingly prefer the convenience and variety that online shopping offers. E-commerce platforms provide easy access to a wide range of products, including the latest 5G modem models from various manufacturers. Furthermore, online stores often feature detailed product descriptions, customer reviews, and competitive pricing, making it easier for buyers to make informed decisions. The rise of direct-to-consumer sales and the increasing trust in online transactions have contributed to the growing dominance of this distribution channel. As manufacturers focus on enhancing their online presence and reach, the online stores segment is expected to continue to flourish in tandem with consumer preferences for digital shopping experiences.

Offline Stores:

Despite the growth of online shopping, offline stores remain a significant distribution channel for 5G modems, particularly for consumers who prefer hands-on experiences before making purchases. Physical retail locations allow customers to see, touch, and test 5G modem devices, which is especially important for complex technology products. Furthermore, knowledgeable sales staff can provide personalized assistance and answer questions, enhancing the overall customer experience. Many consumers appreciate the immediacy of purchasing an item in-store, as it eliminates the wait time associated with online shipping. As manufacturers maintain a presence in brick-and-mortar stores while also expanding their online strategies, the offline stores segment will continue to play a crucial role in the overall distribution landscape of the 5G modems market.

OEMs:

Original Equipment Manufacturers (OEMs) are becoming increasingly vital players in the distribution of 5G modems, as they often integrate these devices directly into end products like smartphones, laptops, and IoT devices. This channel streamlines the supply chain and enables manufacturers to deliver comprehensive solutions with enhanced performance capabilities. By collaborating with modem manufacturers, OEMs can ensure that their devices are equipped with the latest technology and features that meet consumer demands for high-speed connectivity. The growth of this distribution channel can also be attributed to the rising trend of customizations and branding that OEMs offer, making it crucial for them to incorporate 5G modems into their product lines. As the market for connected devices grows, the role of OEMs in facilitating the widespread adoption of 5G technology is becoming increasingly significant.

By Connection Type

mmWave:

mmWave technology is gaining traction in the 5G modems market, particularly due to its ability to provide ultra-high-speed connectivity with low latency. This connection type utilizes higher frequency bands that allow for greater bandwidth and faster data transfer rates, making it ideal for applications requiring significant amounts of data, such as virtual and augmented reality experiences, high-definition video streaming, and gaming. However, mmWave connections have a shorter range and require a dense network of access points to maintain connectivity, which may limit their implementation in certain areas. As telecommunications companies continue to enhance their infrastructure and expand mmWave coverage, the market for 5G modems utilizing this technology is expected to grow, driven by the demand for cutting-edge connectivity solutions.

Sub-6 GHz:

Sub-6 GHz technology is the foundation of 5G connectivity and is expected to play a crucial role in the 5G modems market due to its broader coverage and better penetration capabilities compared to mmWave. This connection type operates on lower frequency bands, making it suitable for urban and rural deployments alike. As a result, Sub-6 GHz modems are increasingly integrated into various devices, providing reliable connectivity without the limitations of line-of-sight requirements that mmWave faces. The ability to support multiple users and devices simultaneously while maintaining stable connections makes Sub-6 GHz technology a preferred option for many telecommunications providers. With the growing demand for reliable connectivity across various applications, including IoT and smart devices, the Sub-6 GHz segment is poised for significant growth in the 5G modems market.

By Region

The regional analysis of the 5G modems market reveals that North America is expected to lead the market, accounting for approximately 40% of the total market share by 2035. This dominance is attributed to the rapid deployment of 5G infrastructure by major telecommunications companies and the region's overall technological advancements. The United States, in particular, is witnessing extensive 5G rollouts, with cities increasingly adopting 5G technology to support the growing demand for high-speed connectivity. Moreover, the presence of key players in the telecommunications and consumer electronics sectors further bolsters the region's position in the 5G modems market. The Compound Annual Growth Rate (CAGR) for North America is projected at around 25.1%, reflecting the sustained growth momentum in this area as more users transition to 5G-enabled devices.

In contrast, the Asia Pacific region is anticipated to exhibit the highest growth rate in the 5G modems market, with a CAGR of approximately 27.5% during the forecast period. This rapid growth is fueled by significant investments in telecommunications infrastructure, especially in countries like China, India, and Japan. The expanding smartphone user base and increasing adoption of smart devices in these regions are also driving demand for 5G modems. Governments are actively promoting digital transformation initiatives, further supporting the proliferation of 5G technology. As Asia Pacific emerges as a key player in the global 5G landscape, the demand for 5G modems is expected to surge to meet the needs of an increasingly connected population.

Opportunities

The 5G modems market is poised to capitalize on several opportunities that are emerging as technology continues to evolve. One of the most promising areas is the integration of 5G technology into autonomous vehicles. As the automotive industry increasingly focuses on connectivity and automation, the demand for reliable, high-speed communication systems will rise. 5G modems will play a crucial role in enabling vehicle-to-everything (V2X) communications, allowing vehicles to communicate with other cars, traffic signals, and infrastructure in real-time. The growing trend of smart cities also presents vast opportunities for the 5G modems market, as these urban environments rely on interconnected devices for improved efficiency in public services, transportation, and emergency response systems. By investing in the development of 5G solutions tailored for the automotive sector and smart city initiatives, companies can leverage these emerging opportunities for sustained growth.

Another significant opportunity lies in the expansion of the Internet of Things (IoT) applications across various industries. As IoT continues to gain traction in sectors such as healthcare, manufacturing, and agriculture, the demand for 5G modems that can support a multitude of connected devices will increase. For example, in healthcare, 5G technology can enable remote patient monitoring, telemedicine, and real-time data transmission, improving patient care. In manufacturing, 5G can facilitate automation and predictive maintenance through real-time data analytics. By developing 5G modem solutions that cater specifically to these industries, companies can tap into the growing demand for high-speed, reliable connectivity, driving further growth in the 5G modems market.

Threats

Despite the promising growth trajectory of the 5G modems market, several threats could hinder its progress. One of the primary concerns is the increasing competition among manufacturers, which might lead to price wars and reduced profitability. As more players enter the market, established companies may find it challenging to maintain their market shares while also investing in research and development to keep pace with technological advancements. Additionally, the rapid evolution of technology can lead to shorter product life cycles, requiring companies to consistently innovate to remain competitive. Another potential threat is the growing cybersecurity risks associated with 5G technology, as increased connectivity exposes networks to new vulnerabilities. Addressing these threats will be crucial for companies in the 5G modems market to ensure long-term success.

Another significant restraining factor for the 5G modems market is the regulatory landscape surrounding the deployment and operation of 5G networks. Different countries have varying regulations regarding spectrum allocation, network infrastructure, and data privacy, which can complicate the entry of new products into specific markets. Compliance with these regulations can be time-consuming and expensive, potentially delaying product launches or limiting market access for some manufacturers. Moreover, the cost of upgrading existing infrastructure to support 5G technology can be a substantial barrier for telecommunications providers, particularly in developing regions. These challenges must be navigated carefully by companies looking to capitalize on the potential of the 5G modems market.

Competitor Outlook

• Qualcomm Technologies, Inc.
• Intel Corporation
• MediaTek Inc.
• Samsung Electronics Co., Ltd.
• Nokia Corporation
• Ericsson AB
• Huawei Technologies Co., Ltd.
• Broadcom Inc.
• Skyworks Solutions, Inc.
• ZTE Corporation
• Murata Manufacturing Co., Ltd.
• Texas Instruments Incorporated
• Infineon Technologies AG
• Analog Devices, Inc.
• Siemens AG

The competitive landscape of the 5G modems market is characterized by the presence of several key players who are actively working to enhance their product offerings and gain a competitive edge. Major companies like Qualcomm and Intel have established themselves as leaders in the development of advanced 5G modem technology, focusing on high-performance chipsets that cater to various applications. These firms leverage their extensive research and development capabilities to innovate and deliver cutting-edge solutions that meet the demands of the evolving connectivity landscape. Additionally, companies like Samsung and Ericsson are playing a pivotal role in the deployment of 5G infrastructure, which directly influences the demand for 5G modems. As these companies continue to invest in technological advancements and strategic partnerships, they are well-positioned to capitalize on the growing opportunities within the market.

Another noteworthy player in the 5G modems market is MediaTek, which has been making significant strides in developing integrated modem solutions for smartphones and IoT devices. Their focus on providing cost-effective solutions while ensuring high performance has allowed them to capture a substantial share of the market. Similarly, companies like Huawei and Nokia are also competing vigorously by offering a diverse range of 5G modem products tailored for different applications and industries. The competition among these major players is fostering innovation and driving the development of more efficient and advanced 5G technologies, ultimately benefiting consumers and businesses alike. As the market continues to expand, it will be interesting to observe how these companies adapt to changing consumer preferences and technological advancements.

In addition to established players, new entrants and smaller companies are also contributing to the competitive landscape of the 5G modems market. These firms often focus on niche markets or specialized applications, allowing them to carve out unique positions within the industry. For instance, companies like Skyworks Solutions and ZTE have been actively working on developing 5G modem solutions that cater to specific sectors, such as automotive and industrial IoT. Their ability to innovate quickly and respond to market demands can provide them with a competitive advantage. Overall, the 5G modems market is witnessing a dynamic and competitive environment, where established players and emerging companies are striving to push the boundaries of technology and deliver optimal solutions to meet the growing demand for connectivity.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Siemens AG
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 Ericsson AB
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Broadcom Inc.
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 MediaTek Inc.
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 ZTE Corporation
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 Intel Corporation
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Nokia Corporation
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Analog Devices, Inc.
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Infineon Technologies AG
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 Skyworks Solutions, Inc.
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 Qualcomm Technologies, Inc.
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 Huawei Technologies Co., Ltd.
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 Samsung Electronics Co., Ltd.
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Murata Manufacturing Co., Ltd.
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Texas Instruments Incorporated
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 5G Modems Market, By Application
    • 6.1.1 Smartphones
    • 6.1.2 Laptops
    • 6.1.3 Tablets
    • 6.1.4 IoT Devices
    • 6.1.5 Smart Home Devices
  • 6.2 5G Modems Market, By Product Type
    • 6.2.1 Standalone Modems
    • 6.2.2 Integrated Modems
  • 6.3 5G Modems Market, By Connection Type
    • 6.3.1 mmWave
    • 6.3.2 Sub-6 GHz
  • 6.4 5G Modems Market, By Distribution Channel
    • 6.4.1 Online Stores
    • 6.4.2 Offline Stores
    • 6.4.3 OEMs

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 5G Modems Market by Region
  • 10.3 Asia Pacific - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 India
      • 10.3.1.2 China
      • 10.3.1.3 Japan
      • 10.3.1.4 South Korea
  • 10.4 Latin America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 Brazil
      • 10.4.1.2 Argentina
      • 10.4.1.3 Mexico
  • 10.5 North America - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 USA
      • 10.5.1.2 Canada
  • 10.6 Middle East & Africa - Market Analysis
    • 10.6.1 By Country
      • 10.6.1.1 Middle East
      • 10.6.1.2 Africa

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global 5G Modems market is categorized based on

By Product Type

• Standalone Modems
• Integrated Modems

By Application

• Smartphones
• Laptops
• Tablets
• IoT Devices
• Smart Home Devices

By Distribution Channel

• Online Stores
• Offline Stores
• OEMs

By Connection Type

• mmWave
• Sub-6 GHz

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• Qualcomm Technologies, Inc.
• Intel Corporation
• MediaTek Inc.
• Samsung Electronics Co., Ltd.
• Nokia Corporation
• Ericsson AB
• Huawei Technologies Co., Ltd.
• Broadcom Inc.
• Skyworks Solutions, Inc.
• ZTE Corporation
• Murata Manufacturing Co., Ltd.
• Texas Instruments Incorporated
• Infineon Technologies AG
• Analog Devices, Inc.
• Siemens AG