DSP Chip Market to Continue Fast Growth Through 2009

In-Stat :One of the fastest-growing components employed in systems, Digital Signal Processors (DSPs), with worldwide unit shipments estimated at 1.5 billion units in 2004, will grow to approximately 2.8 billion units by the end of 2009. DSPs are present in all market segments, such as communications, computer and electronic data processing (EDP), Transportation, Consumer, Industrial, and Military-Aerospace. The market for DSP chips is dominated today by the communications and consumer segments. 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.

• Floating point DSPs are expected to lead revenue increases over the next five years, growing from US$1.0 billion in 2004 to approximately US$2.2 billion by 2009.

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

• The combined segments of industrial and mil-aero 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% their market share, bringing up the combined revenue percentage of both to 20% of the total market in 2009.

DSP Demand in Applications 2004-2009 Publ. 20051115