Baseband processor: Key market research findings
- APAC dominates the market geographically
- Deployment of next-gen LTE networks propels market growth
- Key vendors – Qualcomm, MediaTek, Intel, Broadcom, and Spreadtrum
Technavio’s market research analysts predict the global baseband processor market to grow at a CAGR of around 14% between 2016 and 2020. The growth of this market is fueled by the rise in demand for LTE-based mobile devices. The faster speed of 3G and 4G networks is prompting many countries to opt for 3G/4G connectivity and allocate the bandwidth of 2G networks for the same. Shutting down of 2G services will force the 2G users to move to 3G or 4G services, boosting the sales of 3G or 4G capable mobile devices and subsequently of baseband processors. In 2015, the global baseband processor market was dominated by the APAC with a market share of more than 38%. The availability of low-cost smartphones from vendors such as Xiaomi and Micromax, especially in India and China, is one of the fundamental drivers for the growth of the baseband processor market in APAC during the forecast period.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“The deployment of next-generation wireless networks is an ongoing trend in the global market. Increased network traffic is triggering the deployment of next-generation wireless networks such as 3G, 4G, and 5G. Such technologies are capable of offering wireless connections with speeds that are similar to home broadband connections. The development of next-generation wireless infrastructure makes is possible for consumers and business enterprises to access the Internet from anywhere, at any time,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
Mobile data traffic is undergoing exponential growth across the globe. The average amount of traffic per smartphone increased from 648 MB per month in 2014 to 929 MB per month in 2015. The Middle East and Africa showed the highest growth rate with 117%, followed by APAC with 83%, Latin America with 73%, and Central and Eastern Europe with 71%. North America grew by 55%. Western Europe showed a growth rate of 52% in 2015. Based on the country, Indonesia, China, and India had the highest growth rates, accounting for 129%, 111%, and 89%, respectively, in 2015. Such high growth rate is expected to fuel the demand for baseband processors globally.
The key vendors in the global baseband processor market include Qualcomm, MediaTek, Intel, Broadcom, and Spreadtrum. The presence of a large number of established vendors makes the market highly fragmented. Many vendors such as TXN, FSL, and BRCM have withdrawn from the market because of the intense competition. Prominent smartphone vendors such as Apple and Samsung opting for in-house production has also affected the domination of Qualcomm. Vendors such as Marvell, HiSilicon, Spreadtrum, and Leadcore are focusing on lower-end smartphone manufacturers, especially from China, owing to their growing penetration in the global 4G LTE smartphone market.
A more detailed analysis is available in the Technavio report, Global Baseband Processor Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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