SAN JOSE, Calif. The combined DVD player and recorder semiconductor market is projected to reach over $2.4 billion in 2004, up 27 percent over 2003, according to International Data Corp. (IDC).
But it's the tail of two cities for the separate DVD player and recorder chip markets. "As the DVD player market saturates and semiconductor ASPs decline rapidly, the DVD recorder market, while experiencing delayed penetration, provides relatively high ASPs for the forecast period, and leads its growth," said IdaRose Sylvester, senior analyst with market researcher IDC.
"The crossover between DVD player semiconductor and DVD semiconductor recorder revenue as a percentage of total DVD semiconductor occurs in 2006," she said. "DVD player systems are just about maxed out on semiconductor integration, but DVD recorder semiconductor integration is just starting."
From 2004 to 2008, IDC expects total DVD semiconductor player and recorder revenue to have a CAGR of 11 percent and to reach nearly $3.7 billion in 2008, according to IDC.
DVD player semiconductor revenue is expected to experience a CAGR of minus 21 percent and to have revenues of $637.8 million in 2008. DVD recorder semiconductor revenue is expected to achieve a CAGR of 39.1 percent and reach $3 billion in 2008, according to the firm.
The DVD chip outlook remains questionable for 2005. A crackdown in China, excessive inventories, and other issues are expected to put a damper on DVD player and recorder semiconductor sales well into 2005, according to IDC (see Nov. 23 story).