Australia 5G Chipset Market: Industry Trends, Share | 2025-2033
Australia 5G chipset market is valued at USD 561.6M in 2024, projected to reach USD 927.3M by 2033, growing at 5.3% CAGR by 2025-33.

Australia 5G Chipset Market Overview
Market Size in 2024: USD 561.6 Million
Market Size in 2033: USD 927.3 Million
Market Growth Rate 2025-2033: 5.3%
According to IMARC Group's latest research publication, "Australia 5G Chipset Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Australia 5G chipset market size was valued at USD 561.6 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 927.3 Million by 2033, exhibiting a growth rate of 5.3% during 2025-2033.
How AI is Reshaping the Future of Australia 5G Chipset Market
• Revolutionizing On-Device AI Processing Capabilities: Artificial intelligence integration is fundamentally transforming 5G chipset architecture, with flagship processors like MediaTek's Dimensity 9500 delivering breakthrough on-device AI, top-tier performance, and efficiency. These AI-enabled chipsets process machine learning workloads locally rather than relying on cloud connectivity, enabling real-time applications including computational photography, voice recognition, and personalized user experiences. International Data Corporation forecasts global spending on AI-supporting technology to reach USD 337 billion in 2025, potentially doubling to USD 749 billion by 2028—demonstrating the massive investment driving AI-chipset convergence that directly benefits Australia's 5G ecosystem.
• Enabling Intelligent Network Optimization: AI technologies are revolutionizing how 5G networks operate through intelligent resource allocation, predictive maintenance, and automated optimization. In 2025, Telstra announced investing USD 800 million in AI-driven upgrades while preparing for future 6G integration. AI algorithms analyze network traffic patterns, predict congestion, and dynamically adjust parameters to maintain optimal performance—ensuring chipsets deliver consistent low-latency connectivity essential for applications like autonomous vehicles, industrial automation, and telemedicine across Australia's vast geography.
• Accelerating 5G-Advanced and Edge Computing: The integration of 5G-Advanced and AI is set to accelerate in 2025, with companies like Huawei working alongside carriers and partners to develop technology enhancing smart experiences across numerous user scenarios. AI-enabled edge computing requires chipsets capable of processing complex algorithms locally while maintaining ultra-low latency—critical for industrial IoT applications, smart city infrastructure, and real-time analytics. This convergence is driving demand for increasingly sophisticated chipset designs that balance processing power, energy efficiency, and thermal management.
• Optimizing Chipset Design and Manufacturing: Machine learning is transforming how 5G chipsets themselves are designed and manufactured, with AI tools analyzing billions of design possibilities to optimize architectures for power efficiency and performance. The AI chipset market is projected to reach USD 47.77 billion by 2025, surpassing USD 65.35 billion by 2026 and reaching USD 89.40 billion by 2027—growth that reflects how AI is both a feature within 5G chips and a fundamental tool for designing next-generation semiconductor solutions meeting Australia's connectivity demands.
• Supporting Private Networks and Industry 4.0 Applications: AI-powered 5G chipsets are enabling sophisticated private network deployments across Australian industries including mining, manufacturing, and agriculture. These intelligent chipsets support network slicing, edge analytics, and real-time process automation—allowing enterprises to create dedicated, secure 5G networks optimized for specific operational requirements. As Australia's industries embrace digital transformation, demand for AI-enabled 5G chipsets supporting industrial automation and smart manufacturing continues accelerating, positioning the technology as critical infrastructure for Industry 4.0 adoption.
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Australia 5G Chipset Market Trends & Drivers:
Sustained infrastructure investment from major telecom providers—Telstra, Optus, and TPG Telecom—is significantly driving Australia's 5G chipset market expansion. In 2025, Telstra announced investing USD 800 million in AI-driven upgrades while preparing for future 6G integration expected in the 2030s. These companies are actively expanding 5G infrastructure across metropolitan hubs and regional areas, delivering broader and faster coverage. Widespread deployment requires substantial volumes of 5G chipsets supporting base stations, routers, and mobile devices. As infrastructure scales, chipset manufacturers benefit from increased demand for hardware optimized for advanced connectivity, low power consumption, and thermal efficiency. This strong infrastructure backbone enables faster adoption of 5G-enabled devices while positioning Australia as a forward-moving market in the global 5G ecosystem, attracting chipset developers seeking to test and commercialize cutting-edge products in well-regulated, innovation-friendly environments.
Rising demand for low-latency and high-speed wireless connectivity is accelerating chipset market growth as businesses across sectors rely on real-time data transmission. Applications including remote industrial monitoring, autonomous vehicle operations, telemedicine, and advanced manufacturing require chipsets delivering sub-10ms latency and robust throughput—capabilities legacy 4G solutions cannot consistently provide. In May 2025, Nokia and Optus expanded 5G coverage in regional Australia with Habrok MIMO radios, demonstrating commitment to enhancing connectivity infrastructure. Chipset vendors are engineering compact, energy-efficient solutions optimized for both consumer and enterprise use cases. This evolving requirement accelerates product development and supply chain activity throughout Australia, reinforcing the country's position as a competitive destination for next-generation connectivity solutions while bolstering demand for advanced chipsets tailored for high-performance wireless communication.
Government support through spectrum allocation and streamlined regulatory frameworks has been pivotal in accelerating Australia's 5G adoption, indirectly boosting chipset demand. The Australian Communications and Media Authority (ACMA) has facilitated timely auctions for key 5G frequency bands including 26 GHz and 3.6 GHz, enabling telecom operators to plan and execute large-scale rollouts. Policies emphasizing technology neutrality and open competition have lowered market entry barriers, creating favorable environments for global chipset makers and local innovators. Public sector involvement in funding pilot projects, digital infrastructure initiatives, and regional broadband expansion has stimulated demand for diverse chipset applications—from network access equipment to consumer-grade mobile devices—creating positive market outlook supporting sustained industry growth.
Australia 5G Chipset Industry Segmentation:
The report has segmented the market into the following categories:
Chipset Type Insights:
• Application-Specific Integrated Circuits (ASIC)
• Radio Frequency Integrated Circuit (RFIC)
• Millimeter Wave Technology Chips
• Field-Programmable Gate Array (FPGA)
Operational Frequency Insights:
• Sub 6 GHz
• Between 26 and 39 GHz
• Above 39 GHz
End User Insights:
• Consumer Electronics
• Industrial Automation
• Automotive and Transportation
• Energy and Utilities
• Healthcare
• Retail
• Others
Breakup by Region:
• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
Recent News and Developments in Australia 5G Chipset Market
• March 2025: Telstra announced USD 800 million investment in AI-driven network upgrades while preparing for future 6G integration expected in the 2030s. This strategic investment demonstrates Australia's telecommunications industry commitment to advancing connectivity infrastructure through AI-enhanced 5G technology while laying groundwork for next-generation networks, driving sustained demand for increasingly sophisticated chipset solutions.
• May 2025: Nokia and Optus expanded 5G coverage in regional Australia with deployment of Habrok MIMO radios, enhancing connectivity infrastructure across previously underserved areas. This expansion demonstrates ongoing commitment to improving 5G accessibility beyond metropolitan regions while creating demand for advanced chipsets supporting extended coverage and improved network performance across Australia's diverse geography.
• 2025: MediaTek introduced its flagship Dimensity 9500 chipset delivering breakthrough on-device AI capabilities with top-tier performance and efficiency. The launch represents the accelerating convergence of AI and 5G technologies, with chipsets now capable of processing sophisticated machine learning workloads locally—meeting Australian market demands for intelligent, responsive devices supporting advanced applications across consumer and enterprise segments.
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
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