DSPs on steady climb through 2009, says In-Stat

LONDON — Digital Signal Processors (DSPs), with worldwide unit shipments estimated at 1.5 billion units in 2004, are set to grow to approximately 2.8 billion units in 2009, according to market research company In-Stat (Scottsdale, Arizona).

Over the same period In-Stat expects floating-point DSPs to lead revenue increases over the next five years, growing from $1.0 billion in 2004 to approximately $2.2 billion by 2009.

“The market for DSP chips is dominated today by the communications and consumer segments,” says Max Baron, In-Stat analyst, in a statement. “However, 2009 revenue market segment shares are expected to show a small shift away from these segments in favor of the industrial and mil-aero segments.”

The communications market segment is expected to represent 61 percent of the market in 2009, losing approximately 5 percent market share compared with 2004.

The combined segments of industrial and military-aerospace will increase purchases as part of updating and extending the capabilities of their equipment. They will pay higher prices however due to their demands of higher performance and lower purchasing power increasing by 6 percent their market share, bringing up the combined revenue percentage of both to 20 percent of the total market in 2009.