Strategy Analytics: Qualcomm Dominates the Baseband Market with 800+ Million Shipments in 2021

Rhea-AI Summary

According to a new report from Strategy Analytics, the global cellular baseband processor market reached $31.4 billion in 2021, reflecting a 19.5% growth. Qualcomm led the market with a 56% revenue share, while MediaTek gained momentum with a tripling of its 5G baseband shipments. Notably, 5G revenues surged by 71% year-over-year, accounting for 66% of total revenue. Cellular IoT vendors, including Sequans, also gained traction amidst supply constraints, showcasing a diverse portfolio that extends into automotive and IoT applications.

Positive

• Qualcomm achieved a 56% revenue share in the baseband market.
• 5G baseband revenues grew 71% year-over-year, comprising 66% of total revenue.
• Sequans and other IoT vendors gained market traction despite wafer constraints.

Negative

• Samsung LSI lost 4G LTE and 5G baseband share due to increased sourcing from competitors.
• HiSilicon faced a decline in shipments and market share due to trade sanctions.

iPhone and Android Design-wins Fuel Qualcomm's Growth

BOSTON--(BUSINESS WIRE)-- The global cellular baseband processor market posted 19.5 percent to $31.4 billion in 2021, according to Strategy Analytics' Handset Component Technologies (HCT) service report.

CY 2021 Cellular Baseband Processor Revenue Share: $31.4B, Source: Strategy Analytics' HCT Service (April 2022)

According to this Strategy Analytics' Handset Component Technologies (HCT) research report, "Baseband Market Share Tracker Q4 2021: Qualcomm and MediaTek Together Capture 95 Percent Share in 5G", Qualcomm, MediaTek, Samsung LSI, Unisoc and Intel captured the top-five revenue share rankings in the baseband market in 2021.

• Qualcomm led the baseband market with a 56 percent revenue share, followed by MediaTek with 28 percent and Samsung LSI with 7 percent.
• MediaTek, Qualcomm and Unisoc gained market share while Intel, HiSilicon and Samsung LSI lost share.
• 5G baseband revenues grew 71 percent year-over-year, accounting for 66 percent of total baseband revenue in 2021.
• Cellular IoT baseband vendors ASR Microelectronics, Nordic Semiconductor, Sequans and Sony (Altair) gained significant traction despite wafer constraints. ASR Microelectronics posted almost four-fold shipment growth.

Sravan Kundojjala, author of the report and Director of Handset Component Technologies service at Strategy Analytics, commented, "Qualcomm shipped 800+ million basebands in 2021 and ranked number one in both units’ revenue terms. The iPhone 13 lineup featured the X60 modem, helping Qualcomm gain volume. In addition, the company established itself as the market leader in the premium and high tier Android devices with its Snapdragon 8 and 7 series of chips. Qualcomm also gained significant traction in non-handset segments such as automotive, IoT, cellular tablets, fixed wireless access and other applications with its diverse portfolio of baseband chips."

Mr. Kundojjala continued, "MediaTek more than tripled its 5G baseband shipments in 2021, thanks to its design-wins at Samsung and Chinese OEMs. The company also focused on the mid-range and low-end LTE market and gained market share over Qualcomm in smartphones. Unisoc, on the other hand, regained LTE share with the help of an improved product portfolio and design wins at tier-one smartphone OEMs. Strategy Analytics believes that Unisoc has the potential to gain further LTE share as the company has a proven track record in capturing share in mature technologies."

According to Christopher Taylor, Director of the Strategy Analytics RF & Wireless Components service, "HiSilicon took a hit as trade sanctions affected its shipments, leaving its market share to Qualcomm and MediaTek. On the other hand, Samsung LSI lost 4G LTE and 5G baseband share as its primary customer Samsung Mobile sourced more from Qualcomm, MediaTek and Unisoc."

Source: Strategy Analytics, Inc.

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About Strategy Analytics
Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

For more information about Strategy Analytics
Service Name: Handset Component Technologies
Service Name: RF and Wireless Component Service

View source version on businesswire.com: https://www.businesswire.com/news/home/20220412005085/en/

Report:

European: Stephen Entwistle, +44 (0)1908 423 636, sentiwstle@strategyanalytics.com

US: Christopher Taylor, +1 617 614 0706, ctaylor@strategyanalytics.com

Asia: Sravan Kundojjala, +44(0) 1908 423 638, skundojjala@strategyanalytics.com

Source: Strategy Analytics

FAQ

What is the size of the cellular baseband processor market in 2021?

The cellular baseband processor market was valued at $31.4 billion in 2021.

Which company led the baseband market in 2021?

Qualcomm led the market with a 56% revenue share.

How much did 5G baseband revenues grow in 2021?

5G baseband revenues grew by 71% year-over-year.

What share did Sequans capture in the IoT market?

Sequans gained significant traction in the cellular IoT baseband market despite challenges.

What impact did trade sanctions have on HiSilicon in 2021?

Trade sanctions negatively affected HiSilicon's shipments and market share.