Millimeter Wave RFIC Market Trends

Growth Drivers

• Increasing 5G networks: The proliferation of 5G networks across different countries drives the demand for RFICs in millimeter waves, which are becoming important in high-frequency band utilization. These materials assist in transmitting data quickly and with better connectivity, which is a feature that is sought in modern communication systems. In February 2023, Cisco teamed up with NEC Corporation for better 5G xHaul and private 5G networking. These partnerships point toward the significant importance of RFICs for new-generation communication infrastructure. This points out the increasing adoption of mmWave technologies in mobile and enterprise networks, indicating their growing relevance in the 5G era. 
• Technological advances in mmWave solutions: Continuous innovation in millimeter wave RFICs is enabling the adoption of next-generation wireless technologies by industries. Advanced design efficiencies and integration capabilities are driving the evolution of 5G and beyond. In July 2024, Qualcomm unveiled advanced mmWave solutions that would further improve 5G network performance, enabling the transfer of more data at faster speeds and boosting overall network capacity. Such improvements are compelling wider adoption in applications like autonomous cars, healthcare systems, and high-speed communication networks. 
• Increasing adoption of IoT and smart devices: Growing adoption of IoT and smart devices is increasing the demand for millimeter wave RFICs, which smoothly enable wireless communication. Such components are in high demand to provide reliable and rapid connectivity in dense ecosystems created by IoT. In August 2023, Fujitsu Limited announced a 5G mmWave chip with four-beam multiplexing for efficiency in IoT network improvement. This development is in line with the growing connectivity requirements in smart cities and industrial automation, underlining the rise in RFICs as a part of future technologies. 

• Challenges

• Technical challenges in design and fabrication: The development of mmWave RFICs faces some serious technical challenges, requiring advanced design precision and rich manufacturing experience. These components need to operate efficiently at very high frequencies, which requires sophisticated circuit designs and strict testing processes to ensure reliability and performance. Equally important challenges are thermal management and power efficiency of mmWave RFICs during operation. Besides, specialized materials and the complex fabrication technique that comes along with increased production costs also limit the scalability. These complexities restrict entry to the millimeter wave RFIC market for new players while simultaneously pressuring already existing players to innovate continuously in their lines of production processes. 
• Limited penetration in developing markets: The underdeveloped infrastructure and huge costs associated with the deployment of mmWave RFICs in emerging markets could hinder adoption. Most of these countries still need an effective telecommunication network from which they can avail these types of frequencies. Therefore, most of them utilize their previously used frequency bands to connect via mobile, landlines, or both. In addition to this, in emerging millimeter wave RFIC markets, hardly any manufacturing and deployment capabilities for millimeter-wave technology are available. As a result, the limited awareness of mmWave solution advantages further slows down this technology's adoption in these places.