4 in 10 Telcos Bullish on Investing in 5G-Compatible RF Devices in 2019: FMI Survey

Sales of RF Power Semiconductors to Touch US$ 12 Billion in 2018

Rapid advancements in the telecommunications and electronics industries are boosting global market demand for RF power semiconductors. RF power semiconductors are critical in ensuring bandwidth and functionality enhancement as well as reducing production and development costs of network infrastructure and consumer electronic devices. There is increasing deployment of RF power semiconductors in testing, measurement, and communication systems owing to inherent features such as low noise, high linearity, and low consumption of power.

Future Market Insights (FMI) has studied the various factors impacting adoption of RF power semiconductors in a new research study conducted recently. Global importance of power efficiency coupled with growing penetration of critical networking technologies has created lucrative growth opportunities in the global RF power semiconductor market. FMI’s report tracks the global demand and adoption scenario of RF power modules and devices including RF power amplifiers, RF duplexers, RF filters, RF switches, and several other devices used across key industry sectors such as automotive, telecommunications, consumer electronics, and defence & aerospace.

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Swift development in global network infrastructure and increasing demand for wireless technologies and systems expected to boost adoption of RF power semiconductors in the near term. FMI’s report analyses the critical factors influencing revenue growth of the global RF power semiconductor market across key geographical regions. The last few years have witnessed rapid development in network infrastructure across several countries. This – along with burgeoning adoption of wireless devices such as tablets and smartphones as well as advanced data centres – is driving sales of RF power semiconductors. Growing global demand for IoT technologies is boosting demand for communication infrastructure equipment that necessitates the use of RF amplifiers, transformers, switches, and other components for upgrading fibre optic networks and cellular infrastructure. This is fuelling global demand for RF power semiconductors. Further, global deployment of LTE networks and adoption of next-gen wireless technologies and systems is pushing revenues in the global RF power semiconductor market.

Growing adoption of wireless technologies and systems is propelling demand for RF power semiconductors, according to FMI analysis. The rapid proliferation of wireless mobile phone systems and subsequent increase in the global subscription base along with increasing application of wireless technologies is creating significant opportunities for companies in the RF power semiconductor market. The increase in demand for power-efficient semiconductor products has fuelled the adoption of wireless systems. Manufacturers of semiconductor products are focussing on launching safe, cost-optimal, and high-performance RF power semiconductors in the global market.

Increasing traction of 5G networks is another revenue booster in the global RF power semiconductor market. 5G technology has already entered the global telecommunications industry and telcos are migrating their current network infrastructure to high-speed 5G services and networks. Companies in the RF power semiconductor market are manufacturing 5G compatible RF devices in keeping with the increasing application areas in the telecom industry. Further, increasing adoption of 5G services such as autonomous driving, augmented reality and virtual reality, artificial intelligence, and ultra HD video is spurring global demand for and adoption of RF power semiconductors.

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Key Highlights from FMI’s Analysis and Forecast of the Global RF Power Semiconductor Market

Increasing adoption of RF power semiconductors in the telecommunications industry will push revenues significantly in the next few years, with the global RF power semiconductor market projected to grow at a CAGR of 12% during the period 2018 to 2027.

The RF power semiconductor market in Asia Pacific Excluding Japan is expected to be the dominant and most attractive regional market in terms of revenue, with a projected growth rate of 13.1% during 2018 – 2027.

Revenue from the sales of RF power amplifiers is expected to surge in the coming years, and FMI estimates indicate this will remain the largest product type in the global RF power semiconductor market.

Adoption of RF power semiconductors in the global telecommunications industry will be the highest in the near future, with the sector expected to record a value share of just under 42% by the end of 2018.

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