Market Trends of Americas Digital Signal Processor Industry
Automotive is Expected to Hold Significant Market Share
Digital signal processors find widespread usage in the automotive sector for manufacturing vehicle surveillance equipment and vehicle parts. Location-based service vendors use these processors for remote diagnostic, alignment, and intelligent transportation systems to fine-tune engine performance, track vehicles, and control traffic flow.
Digital signal processors are often used in in-cabin infotainment and control systems, which have demanding signal-processing performance needs. These processors involve specialized features such as high memory bandwidth, fast multiply-accumulate hardware, and instructions that combine multiple operations. Further, an increase in the requirement for safety boosts the usage of digital signal processor-controlled braking, collision avoidance systems, and airbags in vehicles. Thus, contributing to the growth of the market.
The growing need for better safety and advanced driver assistance systems (ADAS) in cars has accelerated the demand for digital signal processors. Intelligent functions, like backup cameras, adaptive cruise control, blind-spot detection, lane change assist, airbag deployment, and emergency braking systems, are made possible by integrating digital signal processor technologies.
In March 2022, Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, announced the expansion of its collaboration with Honda in the field of ADAS. Previously, Honda adopted Renesas' R-Car automotive system on a chip (SoC) and RH850 automotive MCU for its Honda SENSING Elite system featured in the Legend. With the expansion of the partnership, Honda will use R-Car and RH850 in the Honda SENSING 360 omnidirectional safety and driver assistance system.
Today's cars are also incorporating technology which helps in improving their connectivity. Many new vehicles in the market are increasing, including more sophisticated telematics and infotainment capabilities that provide drivers with information on road closures, collision avoidance, and even free parking spaces at their destination. Digital signal processors can allow cars to stay connected in real-time.
North America is Expected to Hold Significant Market Share
According to the National Automobile Dealers Association, it is predicted that the U.S. sales of new light vehicles will rise to 15.4 million units by 2022, with an increase of 3.4% from the previous year. This creates new demands for varied automotive electronic components, significantly impacting the long-term growth of digital signal processors in the digital market.
Many regulations have been implemented in recent years to promote the use of electric vehicles in the country. For instance, New York state lawmakers passed a bill that essentially mandates that all new passenger cars sold run on electric power by 2035. Moreover, the United States has set a target to ensure half of the vehicles sold in the country are electric by 2030.
Also, AI, quantum computing, and advanced wireless networks such as 5G are opening up new frontiers of signal processor demand in the US. For instance, as per GSMA, 5G will become the lead network technology in the US by 2025. The increasing implementation of 5G networks coincides with the growing demand for faster, high-performance computing devices, for which signal processors form a critical element.
In March 2023, Mercury Systems MRCY recently unveiled the DRF3182 Direct Radio frequency (RF) Processing Module, the industry's first signal processing board purpose-built for aerospace & defense applications.
Further, in June 2022, Keysight Technologies, Inc., a technology company that delivers advanced design and validation solutions to help accelerate innovation to connect and secure the world, introduced the new PathWave Advanced Design System (ADS) 2023, an integrated design and simulation software that rapidly addresses increasing design complexity and higher frequencies in the radio frequency (RF) and microwave industry.
