Smartphone Chipset Market Outlook 2025–2031

The global Smartphone Chipset Market size is estimated at US$ 182,000 million in 2025 and is projected to reach approximately US$ 295,000 million by 2031, growing at a CAGR of 8.3% during 2025–2031.
Rising global smartphone penetration, rapid 5G deployment, and increasing integration of AI-driven processing capabilities are accelerating market growth worldwide.

Market Historical Performance

The Smartphone Chipset Market has demonstrated resilient growth over the past five years, despite supply chain disruptions and macroeconomic volatility. In 2020, the market was valued at around US$ 118 billion, supported by steady demand for mid-range and premium smartphones across Asia-Pacific and North America.

From 2021 to 2022, market value increased to nearly US$ 145 billion, driven by early 5G smartphone launches and higher chipset content per device. By 2024, the market reached an estimated US$ 170 billion, registering a historical CAGR of approximately 7.6% between 2020 and 2024. Key developments included the transition to advanced process nodes (5nm and 4nm), increased on-device AI capabilities, and tighter integration of CPUs, GPUs, and NPUs within system-on-chip (SoC) architectures.

Market Overview & Key Statistics

• Market Size 2025: US$ 182 Billion
• Forecast Value 2031: US$ 295 Billion
• CAGR (2025–2031): 8.3%
• Historical CAGR (2020–2024): ~7.6%
• Major End Users: Smartphone OEMs, telecom device manufacturers
• Fastest-Growing Region: Asia-Pacific

The market is increasingly shaped by premiumization trends, where higher-performance chipsets command greater value per unit shipped.

What Is Driving the Smartphone Chipset Market?

Smartphone chipsets are integrated semiconductor solutions that combine processing, graphics, connectivity, and AI acceleration into a single platform. They form the technological backbone of modern smartphones, enabling advanced features such as high-resolution imaging, real-time gaming, and intelligent power management.

The Smartphone Chipset Market is being driven by rising consumer expectations for performance, energy efficiency, and connectivity. Regulatory support for 5G rollout, combined with increasing digital consumption and mobile-first lifestyles, has made high-performance chipsets a strategic priority for smartphone manufacturers. Additionally, competition among OEMs to differentiate devices through AI features and camera capabilities is increasing demand for advanced SoCs.

Key Market Drivers

• Rapid Adoption of 5G Smartphones
  Over 65% of smartphones shipped globally in 2024 were 5G-enabled, significantly increasing demand for advanced modem-integrated chipsets.
• Growth of AI and Machine Learning Applications
  On-device AI for photography, voice assistants, and gaming optimization is driving higher chipset complexity and average selling prices.
• Premiumization of Smartphones
  Consumers are increasingly upgrading to mid-range and flagship devices, boosting demand for high-end chipsets manufactured on advanced nodes.
• Expansion of Smartphone Markets in Emerging Economies
  India, Southeast Asia, and Africa continue to witness rising smartphone penetration, supporting volume growth for entry-level and mid-tier chipsets.
• Technological Advancements in Semiconductor Manufacturing
  Transition to 3nm and 4nm process technologies is improving performance-per-watt, encouraging OEMs to adopt next-generation chipsets.

Market Restraints & Challenges

• High development and fabrication costs for advanced chipsets
• Dependence on limited foundry capacity for leading-edge nodes
• Geopolitical trade restrictions impacting semiconductor supply chains
• Intense pricing pressure in the low- and mid-range smartphone segments
• Shorter product life cycles requiring frequent design upgrades

Smartphone Chipset Market Segment Analysis

By Product / Technology / Type

➤ System-on-Chip (SoC) Solutions (Largest Segment – ~74% Share)
Integrated SoCs dominate the market due to their efficiency and compact design. This segment is growing at nearly 9.1% CAGR, driven by 5G and AI integration.

➤ Application Processors (Standalone)
Used mainly in cost-sensitive devices, this segment maintains steady demand in emerging markets.

➤ Modem and Connectivity Chipsets
Growth is supported by increasing demand for advanced 5G, Wi-Fi 6, and satellite connectivity features.

By Application / End-User

➤ Premium Smartphones (Approx. 38% Market Share)
Flagship devices contribute the highest revenue due to premium chipset pricing and advanced features.

➤ Mid-Range Smartphones (~42% Share)
This segment represents the largest shipment volume, balancing performance and affordability.

➤ Entry-Level Smartphones
Focused on emerging markets, this segment prioritizes cost efficiency and power optimization.

By Region / Geography

➤ Asia-Pacific (Largest Market – ~44% Share)
• Strong smartphone manufacturing ecosystem in China, Taiwan, and South Korea
• Rapid demand growth in India and Southeast Asia
➤ North America (~21% Share)
• High adoption of premium and flagship smartphones
• Strong presence of leading chipset designers
➤ Europe (~18% Share)
• Stable replacement demand and growing 5G penetration
➤ Rest of the World
• Expanding smartphone user base in Latin America and Africa

Emerging Trends in the Smartphone Chipset Market

• Integration of generative AI and advanced neural processing units
• Adoption of 3nm fabrication technology for flagship chipsets
• Increased focus on energy-efficient architectures
• Growth of custom chip designs by smartphone OEMs
• Enhanced security and on-device privacy features

Investment Opportunities

• Expansion of chipset manufacturing capacity in Asia-Pacific
• Development of AI-optimized and energy-efficient SoCs
• Strategic partnerships between OEMs and semiconductor foundries
• Investment in advanced packaging and chiplet technologies
• Growing demand for mid-range 5G chipsets in emerging markets

With rising average selling prices and continuous innovation, long-term ROI potential remains strong despite capital-intensive development requirements.

Key Companies in the Smartphone Chipset Market

• Qualcomm Technologies
• MediaTek
• Apple
• Samsung Electronics
• HiSilicon (Huawei)
• UNISOC
• NVIDIA
• Broadcom
• Intel Corporation

Future Outlook

The Smartphone Chipset Market is expected to maintain strong momentum through 2031 as smartphones continue to evolve into primary computing and connectivity devices. Advancements in AI acceleration, semiconductor process technology, and integrated connectivity will further enhance chipset value and differentiation. Asia-Pacific will remain the manufacturing and consumption hub, while premium chipset demand will drive revenue growth globally.

Conclusion

The Smartphone Chipset Market is a cornerstone of the global mobile technology ecosystem, enabling innovation across connectivity, performance, and user experience. With sustained demand for 5G, AI-enabled devices, and premium smartphones, the market offers substantial growth opportunities for chipset designers, manufacturers, and investors over the forecast period.

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