| Market Size in 2024 | Market Forecast in 2034 | CAGR (in %) | Base Year |
|---|---|---|---|
| USD 21.11 Billion | USD 94.55 Billion | 15.42% | 2024 |
The global 5G chip packaging market size was worth around USD 21.11 billion in 2024 and is predicted to grow to around USD 94.55 billion by 2034 with a compound annual growth rate (CAGR) of roughly 15.42 % between 2025 and 2034.
5G chip packaging is a novel method and solution deployed to store and protect semiconductors that power 5G devices. According to industry reports, advancements in 5G chip packaging are driven by the growing commercialization of 5G solutions worldwide. These packaging items are designed to handle lower latency and high frequencies offered by 5G devices. Some of the most widely used technologies in 5G chip packaging include System-in-Package (SiP) and 3D stacking techniques. These methods improve the overall performance offered by 5G chip packaging.
During the forecast period, the industry for 5G chip packaging is expected to continue growing, driven by several favorable factors. For instance, growing demand for 5G consumer electronics, along with higher integration of the technology on an industrial scale, will facilitate market expansion. Additionally, the rising number of strategic partnerships and technological innovation in the packaging industry will create new growth opportunities. The industry is, however, expected to be affected by the high cost of initial investment that the market demands and raw material supply chain disruptions.
Growth Drivers
How will growing sales of 5G consumer electronics drive the 5G chip packaging market growth?
The global 5G chip packaging market is expected to be driven by the rising sales of next-generation consumer electronics powered by 5G technology. As per industry analysis, 5G consumer electronics offer several advantages over solutions such as higher data speeds, ultra-low latency, and stronger connectivity even in remote areas. The changing lifestyle of the general population and increasing dependence on digital solutions for everyday activities are expected to propel demand for 5G-powered consumer electronics.
For instance, in September 2025, Apple Inc., one of the world’s largest providers of consumer electronics, announced the launch of the iPhone 17 series. The mobile phone range offers cutting-edge modem technologies and 5G features. Similarly, other prominent companies in the consumer electronics segment, such as Samsung, Huawei, Sony, and others, are actively working on meeting evolving consumer preferences.
Expansion of 5G network worldwide to scale market demand in the coming years
In the last decade, the global network and telecommunication industry has witnessed the rapid expansion of 5G rollouts. Government support has played a crucial role in promoting higher investments in 5G networks.
In November 2025, Booz Allen Hamilton, a leading player in the 5G market, announced an investment of USD 99 million by the US Navy's Military Sealift Command (MSC). The defense agency has partnered with Booz Allen to install 5G networks across US Navy Ships in the coming years. Similarly, U Mobile, a prominent player in the Malaysian 5G sector, announced the signing of a 10-year syndicated financing deal with 4 regional banks. The deal is worth USD 1 billion and will fund the capex for the company’s 5G network rollout. On the other hand, recent reports indicate that India is expected to surpass the 1 billion mark for 5G subscribers in the country by 2031.
In September 2025, the country added more than 6400 new 5G sites across the region. Such rapid expansion of the 5G network will prove beneficial for the global 5G chip packaging market players.
Restraints
What influence will barriers have on the 5G chip packaging industry?
The global industry for 5G chip packaging is expected to face growth limitations due to the high initial investment associated with the market. 5G chip packaging is an advanced solution produced using cutting-edge technologies such as Antenna-in-Package (AiP), System-in-Package (SiP), Flip-Chip Packaging, and 3D Packaging, to name a few.
In addition to this, it requires a robust manufacturing infrastructure that must be equipped with specialized equipment. All these factors contribute to the increased cost of production and business operations, impacting market revenue in the long run.
Opportunities
The automotive industry is expected to offer excellent growth opportunities to industry players in the coming years
The global 5G chip packaging market is expected to generate growth opportunities due to the increasing application of 5G networks in the automotive sector. The introduction of self-driving cars, electric & hybrid vehicles, and other next-generation automotives has fueled demand for 5G chips.
Most modern vehicles are equipped with Internet-of-Things (IoT) systems, including components such as Telematics Control Unit (TCU), Advanced Driver Assistance Systems (ADAS) / Autonomous Driving Domain, Infotainment System, and Vehicle-to-Everything (V2X) modules, to name a few. The rising expansion of the automotive industry worldwide will prove beneficial for 5G chip packaging developers.
How will advancements in chip packaging technology create greater revenue for industry players?
The ongoing technological advancements in the chip packaging sector are projected to work in favor of the market players. Recent advancements include Fan-Out Wafer-Level Packaging (FO-WLP) / Panel-Level Packaging (PLP) packaging, 2.5D / 3D Integration, and Backside Power Delivery (BPD). These packaging processes enhance chip performance and prevent them from damage during operation.
Challenges
Disruptions in the supply chain and a lack of sufficiently skilled professionals may challenge market expansion
The global 5G chip packaging industry is expected to be challenged by the disruptions in the supply chain of essential raw materials. As geopolitical tensions continue to rise between prominent nations, along with growing socio-political conflict, market players are at risk of witnessing a shortage in the supply of critical raw materials. In addition to this, a lack of sufficient supply of skilled professionals and the absence of ancillary infrastructure may impact market growth trends in the future.
| Report Attributes | Report Details |
|---|---|
| Report Name | 5G Chip Packaging Market |
| Market Size in 2024 | USD 21.11 Billion |
| Market Forecast in 2034 | USD 94.55 Billion |
| Growth Rate | CAGR of 15.42% |
| Number of Pages | 215 |
| Key Companies Covered | Qualcomm, ASE Technology Holding, Intel Corporation, Samsung Electronics, SPIL (Siliconware Precision Industries), STATS ChipPAC, Nepes Corporation, Amkor Technology, UMC (United Microelectronics), TSMC (Taiwan Semiconductor Manufacturing Company), Huatian Technology, Broadcom, JCET Group, SK Hynix and Powertech Technology Inc. |
| Segments Covered | By Application, By End-User Industry and By Region |
| Regions Covered | North America, Europe, Asia Pacific (APAC), Latin America,The Middle East and Africa (MEA) |
| Base Year | 2024 |
| Historical Year | 2019 to 2023 |
| Forecast Year | 2025 - 2034 |
| Customization Scope | Avail customized purchase options to meet your exact research needs. Request For Customization |
The global 5G chip packaging market is segmented based on application, end-user industry, and region.
Based on application, the global market divisions are industrial applications, automotive, IoT devices, smartphones & tablets, and others. In 2024, the highest growth was listed in the smartphones & tablets segment. It dominated nearly 20% of the global revenue, led by rising demand for 5G smartphones capable of multiple functions. Additionally, a surge in the number of 5G-enabled tablets and mobile phones will promote segmental demand in the future.
Based on the end-user industry, the global market divisions are healthcare, industrial, telecommunications, consumer electronics, and others. In 2024, the largest part of the market share was held by the consumer electronics segment. The surge in the number of end-users worldwide for leading forms of consumer electronics will fuel segmental growth in the future. Additionally, the telecommunications industry is likely to deliver the fastest CAGR during the forecast period.
Why will North America lead the 5G chip packaging market during the forecast period?
The global 5G chip packaging market will be led by North America in the coming years. Regional growth is expected to be influenced by rising technological innovation in the industry. Furthermore, the US has amplified investment in advanced semiconductor production and packaging solutions as it focuses on reducing dependency on other countries. The increasing investments in research & development (R&D) by the regional players will work in favor of the North American market. Europe is a prominent market in 5G chip packaging. The region has a high demand for sustainable production of packaging solutions for 5g chips. Additionally, the regional industry is driven by greater demand for next-generation chips for the automotive industry in Europe.
Asia-Pacific is expected to remain a dominant force in the global market during the forecast period. India, China, and Taiwan will lead the regional revenue as per industry analysis. China and Taiwan are currently two of the world’s leading chip producers, creating demand for suitable packaging solutions. Additionally, surging investments in the regional telecommunication industry and higher demand for advanced consumer electronics will drive the regional market.
The global 5G chip packaging market is led by players like-
Expansion of industrial applications
The rapid automation of industries, including smart factories and automated warehouses,s will promote demand for 5G chip packaging. Integration of robotics and automated solutions in industries is facilitated by cutting-edge chip technology, propelling the use of 5G chip packaging.
Growing investments in emerging markets
Emerging markets India, Malaysia, and Latin American nations are expected to register higher investments in 5G chip packaging. These nations are working on positioning themselves as critical forces in 5G chip packaging production.
By Application
By End-User Industry
By Region
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