5G Modem Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Global 5G Modem Market Overview

Globally, consumers prefer 5G over any other network when it comes to internet connectivity. In order to set up a seamless 5G connectivity in any institution, a 5G modem plays a crucial role. It will provide the software and hardware required to establish and maintain a smooth 5 G connectivity. Such a setup will ultimately result in faster speed, reduced latency rates and better network capacity when compared to the previous networks, thereby pushing the growth of 5G modem market.

As per Qualcomm Technologies, Inc., 5G will be experiencing high demand as it fuels global economic growth, with global economic output projected to reach USD 13.1 trillion and 22.8 million new employment opportunities by 2035. With nearly USD 265 billion projected in global 5G CAPEX and R&D spending per annum for the next 15 years, sectors much beyond core mobile networking—like automotive, healthcare, and manufacturing—are embracing 5G technology. This widespread expansion in industries will significantly grow the demand for robust, high-end 5G modem solutions.

Global 5G Modem Market Growth

Next generation wireless connectivity can only be boosted effectively via the integration of 5G modems. A wide range of applications can be easily supported via these modems, including enhanced private wireless networks, mission-critical services (MCS), massive Internet of Things (mIoT) and mobile broadband (eMBB). Such factors are thereby bolstering the demand in the 5G modem market.

At the same time, a particular modem allows a limited number of connected devices to be paired via it. But 5G modems are designed to support a much higher number of connected devices per unit area when compared to 4G. Such an enhanced capacity is essential for supporting the immense growth of Internet of Things (IoT) and thereby enabling applications like smart factories and smart cities. Thus, to experience the full potential of 5G connectivity, 5G modems are required.

Key Trends and Recent Developments

Global 5G Modem Market Trends

One of the emerging trends in the 5G modem market is the introduction of flexible, software-defined modems. These modems can adapt to future network standards through over-the-air updates. This results in minimized hardware obsolescence and supports long-term compatibility with upcoming 5G advancements such as 5G-Advanced and 6G readiness, thereby shaping new trends in the 5G modem market.

In-built 5G modems are highly being embedded in laptops and tablets. With online learning and remote work gaining traction, consumers increasingly seek always-connected devices. For example, Intel and MediaTek are such companies working together to provide 5G modem solutions for PCs, providing faster, more seamless connectivity without the need to depend on Wi-Fi networks, thereby growing the modem market beyond smartphones.

Global 5G Modem Market Opportunities

The usage of 5G modems in automotive connectivity is a significant opportunity that is gaining traction in the market. With vehicles demanding ultra-low latency and real-time data transmission to enable connected and autonomous cars, 5G modems play a significant role. For instance, such companies as Qualcomm are developing automotive-grade 5G platforms enabling vehicle-to-everything (V2X) communications that improve road navigation and safety, thus leading to new opportunities in the 5G modem market.

Another opportunity is the growth of private 5G networks for various industries. Factories, hospitals, and logistics centers are using private networks for secure, high-speed connectivity. For example, Ericsson is assisting factories in deploying private 5G to support smart automation and real-time monitoring, greatly enhancing operational efficiency and fueling demand for strong, industrial-grade 5G modems.

Global 5G Modem Market Restraints

Although the 5G modem has a multitude of benefits to offer to the consumers, it has certain drawbacks that can hinder the normal functioning of an institution. These modems can offer potential security risks, uneven coverage and infrastructural limitations. 5G networks, particularly those with multiple channels, have the potential to raise the risk of cyberattacks since they are decentralized and do not have end-to-end encryption, thus limiting the 5G modem market expansion. 5G signals, especially mmWave, are more prone to interference from objects and might not be as powerful in some areas, resulting in patchy coverage. Also, since it is based on a network of cell towers, the expense of building and maintaining these towers can be considerable, which may limit mass deployment.

Global 5G Modem Industry Segmentation

Global 5G Modem Market Share

Market Analysis by Type

The demand for both external and internal/integrated modems are gaining traction in the market. External modems are in demand for enterprise and industrial applications, with flexible 5G upgrade capability for legacy devices. As per 5G modem market analysis, internal/integrated modems, on the other hand, are increasingly becoming a crucial aspect in smartphones, tablets, and IoT devices, thus reducing both cost and complexity and hence improving performance. Integrated solutions are particularly preferred in high-end devices, with improved performance and reduced design complexity and cost. As more businesses adopt connected ecosystems, both forms are observing increased demand, with internal modems dominating consumer electronics and external solutions powering enterprise-class applications such as routers, CPEs, and connected equipment.

Market Analysis by Mode

Multimode 5G modems, which support 5G, 4G, and older networks, are gaining traction as customers and enterprises demand seamless connectivity on different network infrastructures. Multimode modems provide fallback capabilities, which are essential during 5G rollouts, thus leading to 5G modem market development. Single-mode 5G modems are also increasing in demand, especially in areas with good standalone 5G coverage or for certain enterprise applications where only 5G connectivity is necessary. Multimode solutions drive smartphone, laptop, and wearables adoption, with single-mode alternatives carving out roles in fixed wireless access (FWA) and industrial environments where unadulterated 5G performance is paramount.

Market Analysis by Application

5G modems are being used across various industries owing to its higher speed for connectivity and lower latency rates. The demand for V2X communications and autonomous vehicles is what is driving the need for these modems in the automotive sector. This results in a robust 5G connectivity in the vehicles. Real-time monitoring along with on-the-go connectivity is what consumers are looking for in the wearables. As per 5G modem industry analysis, such metrics require the 5G modems to give proper output. Better screen display without any internet disruption and faster streaming speed is psuging the consumer appetite towards 5G modems for smartphones and tablets. Virtual reality (VR) another fast-growing application 5G modems that helps in supporting low-latency, high-bandwidth VR streaming, which is essential for gaming, education, and training use cases.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Global 5G Modem Market Regional Analysis

North America 5G Modem Market

North America 5G modem demand is increasing owing to the fast 5G adoption, which represents 32% of all wireless cellular connections, or twice the world average. With 22 million new connections and 11% growth in Q1 2024 alone, the region's dominance in 5G adoption is evident. As consumers and industries increasingly demand high-speed, dependable connectivity, the demand for enhanced 5G modems in smartphones, IoT devices, and automotive use cases continues to grow, creating substantial market opportunities throughout North America.

Europe 5G Modem Market

In Europe, demand for 5G modems is fueled by robust government backing for digitalization, smart cities, and industrial automation. 5G infrastructure investments are gaining pace in key economies such as Germany, France, and the United Kingdom. Moreover, growing consumer demand for rapid mobile connectivity experiences and expanding use of 5G private networks in industries such as manufacturing, healthcare, and logistics are driving the market in Europe.

Asia Pacific 5G Modem Market

Asia Pacific is witnessing tremendous 5G modem demand growth driven by the expansion in mobile broadband, smart cities, and connected devices. South Korea, China, and Japan are leading the world in respect to 5G deployment. Massive investment in 5G infrastructure, rising smartphone penetration, and early take-up of apps like autonomous vehicles and IoT applications are further driving the requirement for next generation 5G modem solutions across the region.

Latin America 5G Modem Market

In Latin America, growth in demand for 5G modems is driven by telecom operators expanding their 5G network footprint and governments spearheading digital inclusion. Brazil, Mexico, and Chile are top countries for this adoption. Increasing smartphone usage, investment in smart agriculture and telemedicine, and the evolution of remote working culture are leading to increased demand for cost-effective, efficient 5G modem technologies that can cater to diverse regional requirements.

Middle East and Africa 5G Modem Market

In the Middle East and Africa, 5G modem demand is increasing as governments heavily invest in smart infrastructure, especially in nations such as UAE, Saudi Arabia, and South Africa. The region is concentrating on 5G for smart cities, optimization of the oil and gas industry, and increasing broadband penetration. Urbanization, digital economy plans, and rising smartphone penetration are key drivers driving the 5G modem market in MEA.

Competitive Landscape

Other key players in the global 5G modem market report are Broadcom Inc., Analog Devices, Inc., Qorvo Inc., Telefonaktiebolaget LM Ericsson, Fujitsu Limited, and ZTE Corporation, among others.