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DSP chip market to continue fast growth through 2009

March 1, 2006

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, reports market researcher In-Stat in Scottsdale, Ariz.

DSPs are present in military-aerospace, communications, computer and electronic data processing (EDP), transportation, consumer, and industrial applications.

“The market for DSP chips is dominated today by the communications and consumer segments,” says Max Baron, In-Stat analyst. “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.”

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A report by In-Stat found:

  • floating-point DSPs will lead revenue increases over the next five years, growing from $1 billion in 2004 to approximately $2.2 billion by 2009;
  • the communications market segment is expected to represent 61 percent of the market in 2009, losing approximately 5 percent share compared with 2004; and
  • the combined segments of military/aerospace and industrial will increase purchases as part of updating and extending the capabilities of their equipment.

Military/aerospace and industrial applications will pay higher prices, however, due to their demands of higher performance and lower purchasing power, increasing by 6 percent their market share and bringing up the combined revenue percentage of both to 20 percent of the total market in 2009.

The report, DSP Demand in Applications 2004-2009 (#IN0502460SI), covers the worldwide market for DSPs. It includes unit shipments, revenue, and average selling price forecasts for 16-bit, 24-bit, and floating point DSPs through 2009. Detailed market overviews and analysis are included.

For additional information about this report, visit In-Stat online at www.in-stat.com.

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