The global mobile SoC market is expected to grow at a compound annual growth rate of 25.64% over the forecast period to reach a market size of US$2,073.322 million in 2026 from US$419.538 million in 2019. The market is expected to surge in the coming years because of the surge in the number of mobile phone users, worldwide. With the adoption of 5G technology, the market is expected to register significant growth, during the forecast period. Major companies, such as Apple, Qualcomm, Samsung, and others, have been developing novel, and advanced Mobile SOC solutions, for their customers.
Adoption Of 5G Telecom Network and Solutions
The market is expected to surge in the coming years, due to the rising investments and adoption of 5G solutions, by a significant number of nations, worldwide. China is one of the major players driving the 5G market growth, globally. The country’s Ministry of Industry and Information Technology, with the Ministry of Science and Technology, and with the National Development and Reform Commission, jointly founded the IMT-2020 Promotion Group, to surge the formulation of 5G standard in joint and cooperative network and mechanism, with the United States, The European Union, South Korea, and Japan. The Chinese government had drawn up various supportive policies under its national strategy, which also included the 13th Five Year Plan and Made In China 2025, to support Research and Development and Strive for 5G commercialization, in the year 2020. According to the China Academy of Information and Communications Technology, the 5G market is expected to account for US$116 billion, or around 3.2% of the country’s entire GDP, by the year 2025. In February 2021, Huawei, one of the major players in the market, stated that China could have more than 500 million 5G users, in the year 2021. Other counties have been making major developments in the market. Europe has been making significant developments in the rollout and adoption of 5G networks and solutions, for their users. The European Union had been fueling a fifth of their US$914 billion recovery fund, to enhance their member nation’s digital capabilities. Mobile operators working in the region had been encouraged by recent developments, regarding the European Union's financial commitment to the technology, in this respective field. Ericsson, a major Swedish Equipment manufacturer, forecasted that the region’s 5G coverage could grow from 1% of the total mobile subscriptions across the region, in the year 2020, to around 55%, in Western Nations, over the next five years. India is also expected to make significant developments in the market, in the next few years, because of the surging number of mobile phone users and internet users. Increasing urbanization in the country is also expected to have a major role in the overall market growth. The Indian Government stated that rollout of 5G services, would begin in the year 2022, and another round of spectrum auction had been planned in late 2021. The telecom ministry had already announced the auction of spectrum worth around US$55 billion, from March 2021. The United States is also expected to have a major share in the market, because of the presence of major players in the region, such as Apple, Intel, Qualcomm, and others. The United States stated that the 5G rollout could be US1.5 trillion, into the country’s GDP in the next five years.
Increasing Number of Smartphone Shipments
The surge in the number of smartphone shipments, with the introduction of innovative, advanced, and novel solutions, is expected to drive the Mobile SoC market growth, during the forecast period. According to the International Data Centre, global smartphone manufacturers shipped a total of 354.7 million smartphones, in the third quarter of the year 2020. The sales declines in 2020, because of the COVID-19 Impact, but the market is expected to rebound in 2021, because of the growth in emerging and developing markets, such as India, China, and others. Samsung had a global market share of 22.7% in the third quarter of 2020, with over 80.4 million shipments, and had a growth of 2.2%, year on year. Xiaomi, one of the major players in the market, had a market share of 13.1% in the same period and showed a growth of 42%, year on year. The company had been using novel and advanced SoC, in their smartphones and other devices or tablets. Countries like China and India are expected to drive market growth in the coming years. According to China’s Academy of Telecommunication Research Statistic, around 73% of 529 handset manufactures in the country, had been engaging in the manufacturing of smartphones. India is also registering significant growth, in the past few years. According to the International Brand Equity Foundation, a think tank of the Ministry of Commerce, the country’s smartphone market rose by 14.5, YoY, with a shipment of around 142.3 million units, in the year 2018. The country is expected to have more than 829 million mobile and smartphone users, by the year 2022.