Buzz Continues To Build Around MPEG-4 AVCs, But MPEG-2 Still Strong

worldwide

In-Stat : Enthusiasm is still building around the nascent MPEG-4 AVC market, but the use of advanced video decoders does not mean that MPEG-2-only decoders will disappear from the market soon. In fact, MPEG-2 unit shipments are expected to experience growth until 2009, though declining ASPs for MPEG-2 solutions will cause revenues to decline, the high-tech market research firm says. Buzz is really all there is to MPEG-4 AVC currently. The market will be small in 2005, as many decoder IC suppliers have been conducting interoperability testing with encoder suppliers. We expect widespread availability of MPEG-4 AVC decoder ICs beginning in 2006.

• The worldwide MPEG Video IC market revenues for 2004 were US$ 3.8 billion.

• MPEG-4 Video ICs will appear in more and more mobile handsets as mobile video delivery systems based on standards like DVB-H and DMB are deployed around the world.

• In the MPEG-2 consumer encoder IC market, NEC Electronics had the top unit share in 2004 for the second year in a row, mainly due to its design wins in DVD recorders.

• STMicroelectronics had the highest MPEG Video IC revenue again in 2004, for the fifth straight year.

MPEG Video ICs: The Buzz Around MPEG-4 AVC ( Publ 20050629