With the increasing demand for growing voice and data traffic, telecommunication networks need powerful signal processing capabilities. A baseband unit processes baseband in telecom systems. A wireless telecom station consists of the baseband processing unit and the RF processing unit where the baseband unit is connected with the RF processing unit and is responsible for communication through the physical interface. A baseband unit has characteristics such as low power consumption, modular design, small size, and can be easily deployed. A baseband unit comprises a digital signal processor to process forward and reverse voice signals for transmission to and from a mobile unit. Baseband unit also consists of GPS sensors or device which tracks the base band unit installed location and helps trace GPS co-ordinates in case of theft. A baseband unit consists of LTE Base Band Processing Unit (LBBP), Universal Main Processing and Transmission Unit (UMPT), Universal Power and Environment Interface Unit (UPEU), fan and other slots where necessary cards are inserted for temperature control, signal processing, configuration management, equipment management, and performance monitoring operations.

Telecom operators manufacture baseband units and distinguish themselves based on power efficiency, processing, and working speed. The compatibility of smartphones with country specific bandwidths is posing a challenge to the baseband unit market. Adjusting telecom policies and setting the standards for a new generation of internet technology have been a challenge in the telecom sector, affecting the baseband unit market. Issue of 4G licenses by the Chinese government has boosted the market growth in the past years. 5G network rollout will further drive the market over the forecast period.

The time-to-market and cost advantages of single-chip solutions for baseband, RF, and power management functions are driving wireless broadband and 3G adoption in developing regions across the globe, in turn fuelling the baseband unit market in these regions. However, the development of next-generation wireless networks is trending in the market. The application of 5G in Internet-of-Things (IoT) and vertical industries will bring significant market growth opportunities over the forecast period. Enhanced mobile internet services are further improving the consumers experience and strengthening user retention, thus acting as a key driver in the market.

The global baseband unit market can be segmented based on wireless air interface, type, end-user, and region. 2G GSM/EDGE, 3G UMTS/CDMA, 4G LTE/LTE-Advanced, 4.5G LTE-Advanced, 4.9G LTE-Advanced, and 5G are the wireless air interfaces covered in the baseband unit market. 5G interfaces are expected to gain traction over the forecast period. 5G air interfaces will increase connectivity, improve spectral efficiency, and reduce latency, thus enabling the deployment of customized Internet-of-Things (IoT) and virtual reality scenarios. Based on type, the baseband unit market can be classified into microcell and macrocell. Based on end-user, the market can be split into mobile terminal, and PC terminal. The mobile terminal segment is expected to expand at a significant rate during the forecast period.

Based on geography, the baseband unit market can be segmented into North America, Asia Pacific, Middle East & Africa, South America, and Europe. The baseband unit market is expected to be fueled by the growing internet penetration and the increasing number of mobile broadband subscriptions in the Asia Pacific region which have led to the growth in number of smartphones and tablet computers, in turn fueling the growth of the baseband unit market.

Key players operating in the baseband unit market include Qualcomm Technologies, Inc., MediaTek Inc., Spreadtrum Communications, Inc., Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., Nokia Networks, Samsung Electronics, ZTE Corporation, and Broadcom Inc. The baseband unit market is highly competitive in nature with the presence of large number of established players.

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