The MPEG video IC market grew 48% in unit volume and 36% in revenues in 2003, according to In-Stat/MDR. Increases in shipments of DVD players and set top boxes were responsible for much of the unit growth.
While DVD player shipments will level off, growth in other products consuming MPEG video ICs, like DVD recorders, digital television sets, and digital terrestrial set top boxes, will keep the total market growing every year through 2008, according to the report.
‘MPEG-4 ICs, both ASP and H.264, will become a force in the market over the next several years as broadcasters use more efficient compression to deliver video to mobile devices and other receivers,’ says Michelle Abraham, a Senior Analyst with In-Stat/MDR.
The mobile handset market will be one of the largest markets for MPEG-4 ICs – particularly those handsets with cameras able to capture video and those with digital TV tuners for mobile broadcast reception. DVD players are adding support for MPEG-4, as are set top boxes connected to bandwidth-limited networks. MPEG-4 ICs will grow at a triple digit rate reaching more than 100 million units in 2007.
In-Stat/MDR has also found that while MPEG-2 decoders for Super Video Compact Disc (SVCD) and DVD will decline as the devices are replaced in the market by DVD recorders, MPEG-1 decoders have found a new market in CD players with MP3 support, as they are a very economical solution for CD player manufacturers wishing to add MP3 playback. DVD recorders and PVRs (Personal Video Recorders) will push shipments of consumer MPEG-2 encoder ICs to more than double in 2004 over their 2003 shipments.
For the fourth year in a row, STMicroelectronics had the largest share of MPEG IC revenue for 2003. ESS Technology again held the top spot for total MPEG units and ST came in second in total units. MediaTek jumped from fourth in revenue in 2002 to second in 2003.
The $3,495 report, MPEG Video ICs: The Promise of MPEG-4, contains unit and revenue share data for 2003 in nine MPEG video IC categories.