Amodulator-demodulator or modem is a hardware device that converts data from a digital format into a format suitable for an analog transmission medium such as telephone or radio. A modem transmits data by modulating one or more carrier wave signals to encode digital information, while the receiver demodulates the signal to recreate the original digital information. The goal is to produce a signal that can be transmitted easily and decoded reliably. Modems can be used with almost any means of transmitting analog signals, from light-emitting diodes to radio. Wireless modems may be prebuilt into smartphones, mobile phones and personal data assistants (PDAs), or they may be distributed in the form of USB, serial or wireless firewall modems. A 5G modem brings a 5G network into the building. Typically, broadband networks only provide access for mobile devices, but with a 5G modem, users can connect at-home or at-work devices to a 5G broadband network. This gives the end user 5G speeds without the need for any traditional cabling.
By application, the 5G modem industry is divided into mobile and tablets, wearable, automotive, virtual reality, and others. The mobile and tablets segment was the highest revenue contributor to the market in 2021.
Surge in adoption of connectivity, digital applications, and wearable technology is expected to drive the growth for players in the 5G modems market. Moreover, upgrading existing supporting infrastructure, including modems, towers, and other supporting infrastructure, is projected to present significant opportunities for new players. The 5G modem market growth is expected to drive significant opportunities as the adoption of 5G technology such as 5G modem router, 5G wifi modem and others has received positive signals in several local markets worldwide.
Furthermore, emerging applications, business models, and declining device costs have driven IoT adoption, increasing the number of connected devices and endpoints globally. 5G offers massive machine-type communication (mMTC), poised to support billions of network-enabled devices to be wirelessly connected. Modern communication systems already serve several MTC applications.
However, high investment and technological & infrastructure challenges in the implementation of 5G network and privacy and security concern are some of the prime factors that restrain the market growth.
The outbreak of COVID-19 significantly impacted the growth of the outdoor manufacturing and industrial sectors in 2020; however, surge in deployment of advanced networking and communication technologies witnessed relatively high growth during 2021. Nevertheless, the market was principally hit by several obstacles created amid the COVID-19 pandemic such as lack of skilled workforce availability and delay or cancelation of projects owing to partial or complete lockdown across the globe. In contrast, rise in penetration of Internet of Things hardware across industrial, manufacturing, and commercial sectors is expected to drive the growth of the 5G modems market share during the forecast period.
Significant factors that impact on the growth of the 5G modem market size include a rise in demand for high-speed internet and large network coverage. Moreover, the increase in demand of 5G modem like Qualcomm x65 for mobile broadband operational frequency is expected to drive the 5G modem market growth. However, high investment and technological & infrastructure challenges in the implementation of 5G network might hamper growth of the market. On the contrary, rise in government initiatives for building smart cities in Asia-Pacific sets potential growth opportunities for the 5G modem industry.
The key players profiled in the report include Samsung Electronics Co Ltd, Intel Corporation, Huawei Technologies Co., Ltd., Spreadtrum Communications, MediaTek Inc, Infineon Technologies AG, Nokia Corporation, Qorvo, Inc., Xilinx and Qualcomm Technologies are provided in this report. The major providers are inclined to invest heavily in product innovation, research, and development in energy and smart infrastructure.
The 5G modems market exhibited development potential across different sectors including consumer electronics, automotive and the telecom industry. Furthermore, rise in number of mobile phone users, along with increase in adoption rate of 5G network drive the demand for wireless communication devices and services.
The 5G modems market is highly competitive, owing to the strong presence of existing vendors. 5G modems market vendors are investing substantially in R&D and skilled workforce and are anticipated to gain a competitive edge over their rivals. The competitive environment in the market is expected to further intensify with an increase in technological innovations, product extensions, and different strategies adopted by key vendors.
The demand for 5G modems in consumer electronics is estimated to expand at a rapid pace during the forecast period due to an increase in government policies and regulations promoting the deployment of 5G networks. Moreover, urbanization and smart city initiatives around the world have increased the need for efficient and reliable energy management, which has created opportunities for the 5G modems market.
The key players profiled in the report include 5G modems market players, such as Samsung Electronics Co Ltd, Intel Corporation, Huawei Technologies Co., Ltd., Spreadtrum Communications, MediaTek Inc, Infineon Technologies AG, Nokia Corporation, Qorvo, Inc., Xilinx and Qualcomm Technologies.
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