LONDON Sales of digital signal processors are likely to be flat this year, mainly because of a decline in consumer electronics applications, according to IC Insights Inc. The total market will be worth $7.8 billion.
However, the market research group expects DSP market growth to recover and accelerate starting in 2006.
It suggests worldwide growth will be 9 percent to $8.5 billion next year, followed by an estimated 18 percent increase in 2007 and a 27 percent surge the following year. The communications sector will be the main driver of this growth, suggests IC Insights (Scottsdale, AZ.).
Consumer applications will represent 4.4 percent of the total DSP market in 2005, down from a 7 percent share in 2004, say the market researchers. The main reason given is the falling average selling prices in home and entertainment products.
Overall, DSP unit shipments are expected to slip 2 percent to about 1.3 billion in 2005, the IC Insights forecast shows.
Communications systems will account for by far the largest share of DSP sales in 2005 at $6.4 billion, or a near 82 percent share, an increase of more than 4 percent compared to $6.1 billion in 2004.
The automotive DSP segment is now forecast to increase 6 percent to $312 million in 2005, from $294 million in the prior year. Revenues from the computer segment will be worth $414 million in 2005, or 5.3 percent, while industrial applications also represent 4 percent of total sales.