5G Low-Loss Material Market Size, Share, Opportunities, And Trends By Material (Thermoset, Thermoplastics, Others), By Frequency (Sub-6 GHz, MmWave), By Application (Infrastructure, Electronics), And By Geography - Forecasts From 2024 To 2029

The 5G low-loss material market is projected to grow at a CAGR of 33.38% to reach US$664.685 million by 2029, from US$88.522 million in 2022.

GROWTH DRIVERS

• Surge in the demand for dielectric thermoplastics and base stations

The advent of 5G technology is fostering innovation across various industries, spanning telecommunications, consumer electronics, automotive, and healthcare. The devices driving this technological shift heavily depend on materials designed to minimize signal loss, particularly at the high-band frequencies associated with 5G (mmWave). These specialized materials, characterized by their high-frequency conductivity, play a pivotal role in enhancing the speed and reliability of connections.

These high-frequency, conductive materials find applications in a diverse range of devices, including antennas, base stations, resonators, lenses, automotive radar systems, and Internet of Things (IoT) devices. They also play a crucial role in supporting service providers' equipment that directly caters to end-users, such as routers and modems. By facilitating faster and more reliable connections, these materials contribute significantly to the seamless integration and functioning of 5G-enabled technologies across various sectors, paving the way for enhanced connectivity and technological advancements.

For instance:

• On July 26, 2021, Avient revealed the incorporation of PREPERM™ low-loss dielectric thermoplastics into its expanding range of materials designed to meet the requirements of evolving 5G applications. These thermoplastics offered consistent and controlled dielectric performance, along with exceptionally low transmission loss at mmWave frequencies, reaching up to 220 GHz. Covering a dielectric constant (Dk) range from 2.55 to 23, these materials were strategically designed to enhance antenna efficiency and provide lightweight solutions for 5G devices.
• According to recent data released by India's Department of Telecommunications (DoT), a total of 308,466 5G base stations were reported in the country, as of August 2023. This marked a substantial increase from early 2023 when the government had documented 53,590 5G base stations. The government termed it the world's fastest rollout of 5G services.

Increased use of 5G hardware

A 5G-enabled smartphone necessitates the integration of a 5G chipset to support the corresponding network. Carriers are required to develop new equipment and hardware while phasing out older 4G components to make way for 5G resources. Depending on the company, both hardware and software upgrades become imperative in the process of creating a 5G phone. Manufacturers are also constructing small-cell networks to enhance existing macro-cell towers. When a large number of users rely on a single network within a confined area, the cell tower may become overloaded, leading to diminished performance. However, through small cell technologies, telecom operators can concentrate scarce network resources, thereby increasing wireless network capacity and enabling carriers to meet the growing demand. Implementing small cells around small businesses, public venues, and residential areas allows carriers to enhance 5G connectivity for subscribers.

• As the 5G standard undergoes continuous evolution, service providers are making hardware advancements. Leading manufacturers in the 5G systems domain include Qualcomm and Huawei. In February 2021, Qualcomm introduced a 5G modem capable of supporting speeds up to 10 Gbps, marking the first modem-to-antenna platform with such capabilities. This 5G chip has the potential to enhance connectivity on smart devices.
• Huawei, a prominent network operator, is a key player in manufacturing 5G telecom equipment. In 2020, the company launched a new generation of 5G massive MIMO, reportedly featuring lower power consumption than 4G RU, increased bandwidth up to 440 MHz, and a lighter weight compared to the industry average. Huawei is actively working towards constructing ultra-lean sites for the 5G rollout, aiming to address some of the network's infrastructure challenges.
• In 2020, Samsung, in partnership with Intel, achieved speeds of 305 Gbps on a 5G User Plane Function (UPF) Core, a crucial aspect of the 3rd Generation Partnership Project standards for 5G infrastructure.

FAVOURABLE GOVERNMENT REGULATIONS

In August 2022, to foster the 5G ecosystem in India and advance the goals of Aatmanirbhar Bharat and Make in India initiatives, the Government of India opted to grant free access to the Indigenous 5G Test Bed for the next six months until January 2023 for Indian Government-recognized start-ups and MSMEs. Other stakeholders had the option to utilize the test bed at a very nominal rate during this period. The Department of Telecommunications, under the Government of India, strongly encouraged all 5G stakeholders, including Industry, Academia, Service Providers, R&D Institutions, Government Bodies, and Equipment Manufacturers, to leverage the 5G testbed facilities and expertise for testing and facilitating the swift development and deployment of their products in the network.

The creation of this Indigenous Test Bed marked a significant milestone in India's journey toward self-reliance in the 5G technology domain, aligning with the vision of a 5G Aatmanirbhar Bharat. The test bed provided indigenous capabilities for testing and validating 5G products developed and manufactured by Indian start-ups, MSMEs, R&D entities, academia, and industry users. This initiative resulted in substantial cost efficiency and reduced design time, positioning Indian 5G products to be globally competitive in the market.

EMERGING OPPORTUNITIES IN THE 5G LOW-LOSS MATERIAL MARKET

Fused Silica

HPFS (High Purity Fused Silica) emerges as a highly viable option for the substrate material employed in radio-frequency (RF) components like antennas. It facilitates the realization of 5G telecommunications for enhanced streaming speed and improved connectivity across both consumer and infrastructure devices. This suitability is attributed to HPFS's attributes of low dielectric loss, a low dielectric constant, and ease of processing. Fused silica particularly distinguishes itself as an optimal choice, ensuring minimal signal loss during the transmission of RF signals.

In October 2021, Denka Company Limited announced the release of the advanced functional ceramics Denka Fused Silica (DF) Low-dielectric Loss Type, crucial for minimizing transmission loss in 5G communications and achieving high-speed broadband communication.

GEOGRAPHICAL PRESENCE

Asia Pacific region is expected to show significant growth in this market. In April 2020, Shin-Etsu Chemical launched advanced materials specifically developed for 5G-related products. Shin-Etsu introduced a "Quartz Cloth" and a "Thermoset Ultra-low Dielectric Resin," designed for applications in electronic devices, printed circuit boards, IC substrates, antennas, and radar domes utilized in high-frequency 5G communication, including millimeter-wave communication. Additionally, the company expanded its range of heat dissipation products. In conjunction with these newly developed materials, Shin-Etsu entered into a licensing agreement with Novoset, LLC, encompassing the manufacturing and sales of high-performance thermoset ultra-low dielectric resins developed by Novoset. Hence, the market of low-loss 5G materials is expected to grow in Japan.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market are Solvay, Covestro AG, and Asahi Kasei Corporation among others. The product offerings of the major corporations include the following:

5G Low-Loss Material Market Scope:

SEGMENTATION

The 5G low-loss material market has been analyzed through the following segments:

• By Material
  • Thermoset
  • Thermoplastics
  • Others
• By Frequency
  • Sub-6 GHz
  • mmWave
• By Application
  • Infrastructure
  • Electronics
• By Geography
  • Americas
    • USA
    • Others
  • EMEA
    • Germany
    • UK
    • Others
  • APAC
    • China
    • Japan
    • South Korea
    • Others