El Segundo, Calif.,-- MPEG already has conquered the PC and consumer electronics worlds, with the video-compression technology integrated into 630 million devices shipped in 2006 alone. However, the technology is just getting warmed up, as the rise of the MPEG-4 standard spurs its spread to mobile phones and expands its influence on the Internet, according to iSuppli Corp.
"MPEG's greatest opportunity will be found in the mobile-phone market, where consumers' desire for superior video quality has become a driving force for mobile-phone features and differentiation," said Rick Sizemore, who covers multimedia content and digital advertising at iSuppli. "With YouTube and other user-generated content sites serving as the distribution vehicle, and with content being generated spontaneously by mobile-phone users, the MPEG market is set to undergo accelerated growth in the coming years."
The number of MPEG-4 (H.264/AVC/MPEG4 (Part 10)) codecs in mobile handsets will rise to 509 million units by 2010, expanding at a whopping Compound Annual Growth Rate (CAGR) of 206 percent from a mere 1.9 million units in 2005, according to iSuppli. The total market for handset video codecs is set to grow to 1.9 billion units by 2010, rising at a 13.6 percent CAGR from 836.5 million units in 2005.
The table below and attached presents iSuppli's forecast for worldwide MPEG-4 video codec shipments for mobile phones for the period from 2004 through 2010.
iSuppli Figure: Worldwide Forecast of MPEG-4 Codec Shipments for Mobile Phones, 2004-2010 (Millions of Units)
The Swiss Army phone
The mobile-phone market has become the "Swiss Army knife" of consumer electronics, integrating multiple features including PDA
playback—and soon—streaming video. This video must be delivered via networks that have fairly limited bandwidth. This limitation will not be a problem for the bandwidth-stingy MPEG-4, which is one of the reasons it is replacing MPEG-2 in wireless-communications applications.
The growth of MPEG-4 usage in mobile phones is fueling the overall expansion of the MPEG codec market worldwide.
MPEG is everywhere
MPEG video compression technology can be found almost everywhere in the home and in professional environments. Products employing MPEG technology include digital cameras, Set-Top Boxes (STBs), Digital Televisions (DTVs), MP3 players, video-game consoles, DVD players and Digital Video Recorders (DVRs). It's even used by YouTube.
iSuppli predicts by the end of this decade, more than 160 million STBs and 40 million game consoles will ship annually—and these represent only two of the myriad of platforms in which MPEG is deployed.
"Digital still cameras, camcorders, set-top boxes and now high-end phones will drive the need for compression and decompression at a fevered rate," Sizemore added. "On top of that, with Apple on the verge of entering the mobile-phone market with the iPhone, Personal Media Players/Recorders could start appearing everywhere."
iSuppli analyzes MPEG market
iSuppli's new report, entitled: MPEG: Core Multimedia Enabling Technology Sees Sustained Opportunity, covers the worldwide market for MPEG platforms. The research contains worldwide forecasts the total market for cable, satellite, Internet Protocol Television (IPTV), Video Games, mobile phones and more. The report further breaks down the revenue share per platform as well as semiconductor sales. It also profiles the leaders in the industry as well as lesser known players trying to obtain market share.
For more information on this report, visit: http://www.isuppli.com/catalog/detail.asp?id=9061
This report is part of iSuppli's Component and Multimedia Services service. This service researches the dynamic markets for multimedia content and services delivered via wire-line and wireless networks to both mobile and tethered devices.
iSuppli Corporation is the global leader in technology value chain research and advisory services. iSuppli provides market intelligence services for the EMS, OEM and supplier communities in addition to servicing consumer electronics and media concerns. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to multimedia content and services. More information is available at www.isuppli.com