US 5G Modem Market

US 5G Modem Market Size and Share:

The US 5G modem market size was valued at USD 36.4 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 276.4 Billion by 2033, exhibiting a CAGR of 22.5% from 2025-2033. The market is experiencing robust growth, driven by the expanding fifth-generation (5G) network coverage, increased adoption of the Internet of Things (IoT) devices, rising demand for high-speed internet, and the growing popularity of 5G-enabled consumer electronics, supported by government initiatives and technological advancements.

One of the main factors driving the 5G modem market's expansion is the U.S.'s growing 5G network coverage in urban, suburban, and even rural areas. 210 to 300 million people nationwide are covered by 5G mid-band, while over 300 million, or 90% of the population, reside in locations that are supplied by 5G low-band. This is because network providers are pushing hard to develop sophisticated antennas, small cells, and macro cells as part of their infrastructure to offer 5G connection. As consumers and companies look for devices that can take advantage of the updated network's speed and dependability, these changes have a direct impact on the demand for 5G modems.

The Internet of Things (IoT) is transforming homes, industries, and cities by connecting devices to the internet for smooth communication and automation. The US IoT integration market is rapidly growing at a 27% annual rate. In this share, the industrial IoT sector is also projected to rise by 17.1% yearly. This success of IoT is majorly dependent on ultra-fast, low-latency networks that can handle billions of connected devices. This is where 5G modems come in as they provide the connectivity backbone for smart home systems, autonomous vehicles, industrial automation, and healthcare monitoring devices. Being a major adopter of IoT as businesses in the country integrate these solutions into their operations, the need for reliable 5G modems has been skyrocketing. These modems enable faster communication between devices, boosting efficiency and productivity while laying the groundwork for innovations in sectors like agriculture, transportation, and energy.

US 5G Modem Market Trends:

Rising Demand for High-Speed Internet in Remote Work and Education

The demand for high-speed internet has been steadily rising due to the trend towards remote employment and online learning. Currently, about 15% of all employment prospects in the United States are remote. Additionally, 97% of remote workers said they would like to work remotely indefinitely. For cloud computing, file sharing, and video conferencing, employees and students are depending increasingly on reliable connectivity. This gives way to 5G modems because they provide the performance needed to satisfy these demands, making them a necessary tool for both homes and enterprises. In addition, the growing number of remote and hybrid work arrangements by businesses has prompted workers to upgrade their home configurations with 5G-capable modems.

Emerging Use Cases in Augmented Reality (AR) and Virtual Reality (VR)

AR and VR technologies are no longer confined to gaming and are now being used in industries like healthcare, real estate, retail, and education. For instance, the U.S. Food and Administration updated the list of medical devices in September 2024 that authorized 69 medical devices that use AR/VR. These applications often require high-speed, low-latency connections that 5G modems excel at providing. Surgeons have been using VR for complex procedures, while architects can create immersive walkthroughs for clients using AR. In the entertainment sector, AR and VR are known to better and improve user experiences with real-time interaction and stunning visuals. The U.S. market for these technologies is expanding rapidly which is creating the demand for 5G modems to power devices that support them.

Proliferation of Smart Devices and Wearables

In the United States, the market for connected devices, such as fitness trackers, smartwatches, and smartphones, is expanding rapidly. A 2023 poll conducted by Rock Health Digital Health Consumer Adoption found that 44% of Americans own wearable health monitoring devices, like smartwatches or smart rings, to monitor health parameters like sleep habits. 5G modems offer the reliable connectivity that these devices need to operate effectively. Consumer adoption of 5G-enabled devices has been driven by the desire for faster download speeds, more seamless streaming, and improved battery life. In order to satisfy the diverse demands of their customers, manufacturers are incorporating 5G modems into wearables and smart devices.

US 5G Modem Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the US 5G modem market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on modem type, mode, download speed, and application.

Analysis by Modem Type:

• Internal/Integrated
• External
   

Internal 5G modems are embedded directly within devices like smartphones, tablets, laptops, and IoT systems. These modems enable seamless connectivity without requiring additional hardware, offering users convenience and better power efficiency. With the increased focus of leading chip makers on integrated solutions, this segment benefits from increasing demand for compact, high-performance devices. Integrated modems are also preferred in IoT applications, where space is limited and energy efficiency is of utmost importance.

External 5G modems include standalone devices like universal serial bus (USB) dongles, hotspots, and routers that serve users seeking flexibility and multi-device connectivity. These modems are popular among businesses and remote workers needing reliable internet access across multiple devices or locations. The segment sees growing adoption in industries like logistics and healthcare, where external modems offer portable, high-speed connectivity. Their ability to provide 5G access to older devices without integrated support also drives their demand.

Analysis by Mode:

• Single-Mode
• Multimode
   

Single-mode 5G modems provide optimal performance for applications requiring high-speed connectivity with minimal latency. These modems are ideal for environments where 5G infrastructure is fully established, such as urban areas or specific industrial settings. Their targeted design often makes them more cost-efficient for use cases like autonomous vehicles and fixed wireless access systems, where consistent, high-performance 5G connectivity is essential.

Multimode 5G modems support multiple network types, including 5G, 4G LTE, and sometimes 3G, enabling seamless transitions between networks. This versatility makes them popular in regions where 5G coverage is still expanding or for devices used across varying network environments. Multimode modems are widely integrated into smartphones, laptops, and IoT devices, as they ensure reliable connectivity by switching to older networks when 5G is unavailable, enhancing user experience and device compatibility.

 Analysis by Download Speed:

• Up to 5 Gbps 
• Up to 6 Gbps
• More Than 6 Gbps
   

Up to 5 Gbps 5G modems are designed for moderate-speed requirements, commonly used in consumer electronics like smartphones, tablets, and entry-level laptops. These modems cater to users prioritizing affordability while enjoying enhanced browsing, video streaming, and cloud-based applications. The widespread adoption of devices with up to 5 Gbps capabilities is driven by their compatibility with a broader range of consumer budgets and the growing demand for mainstream 5G connectivity in urban and suburban areas.

The modems with download speeds of up to 6 Gbps target more demanding applications, such as the highest resolutions of video streaming, advanced gaming, and professional remote working. These modems find an economical balance between cost and performance that appeals to tech-savvy consumers and businesses that need faster speeds without having the ultra-high-speed model with its premium price tag. These modems are also being adopted into sectors like media production and e-sports that demand reliable, higher speed connectivity.

More than 6 Gbps 5G modems offer high-performance characteristics that are tailored for cutting-edge applications requiring ultra-fast and low-latency connections, such as augmented reality (AR), virtual reality (VR), autonomous systems, and high-capacity industrial IoT networks. These modems are primarily adopted by enterprises, researchers, and early adopters in technology-intensive industries. The more than 6 Gbps segment is expected to grow rapidly as innovations like 8K streaming, advanced telemedicine, and smart city solutions drive the need for top-tier 5G connectivity.

Analysis by Application:

• Mobile and Tablets
• Wearable
• Automotive
• Virtual Reality
• Others
   

The constant need for faster internet and better user experiences has made the mobile and tablet market one of the top uses for 5G modems. Advanced features like cloud gaming, seamless streaming, and quicker downloading are made possible by smartphones and tablets with 5G modems. In order to match customer expectations, manufacturers like Apple and Samsung are including 5G modems into their most recent models. As a result, this market sector is a major contributor to the industry's growth, especially among tech-savvy consumers.

5G modems are finding new uses in wearables, such as smartwatches, fitness trackers, and augmented reality (AR) glasses. These devices benefit from low-latency connectivity, improving features such as real-time health monitoring and AR-based navigation. The increasing adoption of connected wearables, especially in the healthcare and fitness sectors, has created a growing demand for compact and energy-efficient 5G modems, tailored for wearable technologies.

Connected cars and autonomous vehicles require high-speed and reliable networks for navigation, communication, and safety, making the automotive sector one of the major growth areas for 5G modems. They are also known to support applications like real-time traffic updates, vehicle-to-everything (V2X) communication, and over-the-air software updates. As more emphasis is put on the development of smart transportation systems and more people adopt electric vehicles (EVs), the 5G modem in an automobile will be considered a basic need.

The VR industry makes use of 5G modems' very high bandwidth and low latency to provide realistic training, simulation, and gaming experiences. Real-time interaction in virtual worlds and seamless streaming of high definition (HD) information are made possible by these modems, which are crucial for applications in industrial training, education, and entertainment. The need for 5G modems to power VR devices is increasing gradually as the technology becomes more widely used in both consumer and business industries.

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

The Northeast region of the United States is home to densely populated urban areas. With a tech-savvy population and strong infrastructure investment, this region sees high adoption rates for 5G-enabled devices, particularly in consumer electronics and business applications. Industries like finance, education, and healthcare are also driving demand, utilizing 5G modems for telehealth, remote work, and smart city initiatives.

The Midwest, known for its blend of urban hubs and agricultural areas, is experiencing steady growth in the adoption of 5G modems. Its cities drive urban demand, while rural regions are leveraging 5G technology to enhance smart farming and industrial automation. Government initiatives to improve broadband access in rural areas have further boosted the deployment of 5G modems, enabling better connectivity for households and businesses.

The South represents a rapidly growing market for 5G modems. The region’s burgeoning tech hubs are at the forefront of 5G adoption, supporting applications in IoT, smart homes, and advanced manufacturing. Additionally, the South's large and diverse population, combined with investments in infrastructure, has driven significant demand for 5G-enabled devices in both urban and suburban areas.

The West is a major market for the 5G modem with its tech-centric economy and early adoption of advanced technologies. Silicon Valley and other innovation hubs are driving demand for high-performance modems in applications ranging from AR/VR to autonomous vehicles. The region also benefits from substantial investments in 5G infrastructure, making it a key market for cutting-edge consumer and industrial 5G applications.

Competitive Landscape:

Key companies in the industry are focusing on innovation and strategic partnerships to strengthen and expand their position. They are developing advanced modem technologies to support higher speeds, better energy efficiency, and seamless connectivity for a range of devices. Emphasis is also placed on enabling next-generation applications like IoT, augmented reality, and autonomous systems. Efforts are also directed toward integrating these modems into a variety of consumer electronics, wearables, and industrial equipment to meet growing demand. Strategic alliances with network providers and technology firms are accelerating the rollout of compatible infrastructure and devices, while investments in research and development are ensuring continuous product enhancements. These players are also tailoring solutions for diverse use cases, from urban connectivity to rural broadband expansion, addressing different consumer and enterprise needs effectively.

The report provides a comprehensive analysis of the competitive landscape in the US 5G modem market with detailed profiles of all major companies.

Latest News and Developments:

• In September 2024, Apple Inc. stated that it intends to equip its iPhones with an in-house 5G modem by 2025 and would begin utilizing its own Wi-Fi chips shortly thereafter.
• In February 2024, Qualcomm unveiled its most advanced 5G modem-RF system Snapdragon X80 5G Modem-RF System, that makes use of integrated artificial intelligence to enable the next generation of 5G. It is said to be the seventh generation of its 5G modem-to-antenna solution. It includes a dedicated 5G AI processor and 5G-advanced-ready architecture to achieve milestones like the first 5G modem with fully integrated NB-NTN satellite communications support, 6X carrier aggregation, 6-antenna architecture for smartphones, and artificial intelligence (AI)-based mmWave range extension for fixed wireless access customer premise equipment (CPE).

US 5G Modem Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the US 5G modem market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the US 5G modem market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the US 5G modem industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.