Market Snapshot
| Study Period: | 2020-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | Asia-Pacific |
| CAGR: | >7.28 % |
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Market Overview
The digital signal processor market is expected to register a CAGR of 7.28% during the forecast period (2022 - 2027). The digital signal processor market is anticipated to witness significant growth owing to the excessive usage of digital signal processor chips in consumer electronics. Several consumer electronics, such as mobile phones, have become a major requirement worldwide and have observed a considerable user surge. According to the BankMyCell, mobile phone users worldwide have increased significantly from 4.30 billion in 2016 to 7.10 billion in 2021.
- Within the mobile phone industry, a major portion of customers uses smartphones. The number of smartphone users increased from 6.02 billion in 2020 to 6.37 billion in 2021. Further, based on forecast figures by Ericsson and The Radicati Group, smartphone users are expected to increase to 7.33 billion by 2025. Mobile devices are the major adopters of digital signal processors, and their growth is further anticipated to boost the market size for digital signal processors during the forecast period.
- Additionally, an increase in data traffic and the usage of technologies such as Internet Protocol (IP) cameras for video surveillance are expected to boost product demand worldwide. Moreover, due to its cost benefits, digital signal processing has grown as the leading technology for developing high-performance communication systems.
- However, due to challenging real-time limitations, although performance has always been the most critical parameter for digital signal processor quality comparison, the past two decades have seen a drift. Through the rapid migration of digital signal processors from military applications to low-cost applications in portable devices such as laptops, smartphones, and CD players, power consumption and cost have become crucial parameters when selecting a digital signal processor.
- Further, the effect of COVID-19 on the mobile devices market has been moderate. Moreover, the pandemic changed the perception of the current global supply chain in manufacturing, potentially leading to more localized value chains and further regionalization to minimize similar risks shortly.
- The decline in consumer spending owing to the pandemic has led to a decline in smartphone sales to a certain level, which has eventually declined the demand for digital signal processors on a short-term basis. The decline in disposable income is mainly due to the negative effect of the pandemic on economic conditions.
Scope of the Report
Digital signal processors are specialized microprocessor chips designed and developed to perform mathematical functions like additions, multiplications, subtractions, and divisions at high speed with minimum energy consumption. Digital signal processors take real-world signals such as audio, voice, video, temperature, and pressure and manipulate them so that the information they hold can be analyzed, displayed, or converted into a signal of use.
The core segment considered part of the study includes single-core and multi-core. The end-user industries considered part of the study include communication, consumer electronics, healthcare, automotive, aerospace and defense, and industrial in various geographies. Also, the study includes the impact of COVID-19 on the market.
| By Core | |
| Single-core | |
| Multi-core |
| By End-user Industry | |
| Communication | |
| Automotive | |
| Consumer Electronics | |
| Industrial | |
| Aerospace & Defense | |
| Healthcare |
| By Geography | |
| North America | |
| Europe | |
| Asia Pacific | |
| Rest of the World |
Key Market Trends
Growing Applications in Automotive Industry
- 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 systems, alignment systems, 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 systems and in 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 automotive industry has faced the brunt of the pandemic, with an exponential decline in demand for passenger vehicles and investments. According to the data published by OICA, in 2020, the number of passenger cars sold across the world stood at 53.9 million, which was 64.0 million during the previous year. However, the industry has been witnessing a positive growth trend since 2021.
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APAC to Register Highest CAGR in Market During Forecast Period
- The digital signal processor market in the Asia-Pacific region is expected to increase rapidly during the forecast period. The region is a major market for electronics manufacturing and extensive usage of digital signal processors in the electronics industry, which is expected to fuel the growth of the digital signal processor market in the region.
- Significant demand for smartphones from countries such as India, China, Japan, and South Korea, are encouraging many vendors to set up production facilities in the region. The availability of raw materials and the low establishment and labor costs have also motivated companies to establish their regional production centers. Along with manufacturing benefits, the strong demand and rapid growth are also influencing mobile phone companies to set up their production facilities in the Asia Pacific. Expanding mobile phone companies in the region are further anticipated to drive the demand for digital signal processors and strengthen regional market growth.
- India has a large consumer base for mobile phones; hence the production of mobile handsets is further slated to increase in value from USD 30 million in FY 21 to USD 126 million in FY 26, as stated by Invest in India, the National Investment Promotion and Facilitation Agency of the Government of India.
- China is a global leader in automotive production, and the growing investments and expansions in the sector in developing the next-generation vehicles are contributing to the market growth. In August 2021, Honda motor announced plans to ramp up its capacity to build electric cars and other new-energy vehicles in China. Honda will invest around 3 billion yuan through a joint venture to expand an existing factory in Guangzhou.
- Thus, owing to the aforementioned factors, the revenue share from Asia-Pacific is anticipated to grow faster than the other geographical regions during the forecast period.
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Competitive Landscape
The Global DSP Market is moderately competitive and consists of several major players such as Texas Instruments Inc., Intel Corporation, Analog Devices Inc., Infineon Technologies AG, NXP Semiconductors NV, etc. In terms of market share, few major players currently dominate the market. However, many companies are increasing their market presence by securing new contracts and tapping new markets with innovations and technological advancements. Some of the recent developments in the market are:
- In January 2022, Infineon Technologies AG introduced a new AURIX TC4x family of 28 nm microcontrollers (MCUs) for next-generation eMobility, ADAS, automotive E/E architectures, and affordable AI applications. The new AURIX TC4x family features the next-generation TriCore 1.8 and scalable performance improvements from the AURIX accelerator suite. This comprises the novel parallel processing unit (PPU), a SIMD vector digital signal processor that addresses several AI topologies' demands.
- In December 2021, Analog Devices, Inc. introduced a breakthrough RadioVerse System-on-Chip (SoC) series, ADRV9040. It offers eight transmit and receive channels of 400MHz bandwidth and incorporates advanced digital signal processing functions, such as carrier digital down-converters (CDDC), carrier digital up-converters (CDUC), and digital pre-distortion (DPD), and crest factor reduction (CFR). This expanded signal processing is expected to eliminate the requirement of a field-programmable gate array (FPGA), thus reducing thermal footprint and total system weight, size, power, and cost.
Recent Development
- In February 2022, STMicroelectronics launched Intelligent Sensor Processing Unit (ISPU), which combines a DSP suitable for running AI algorithms and MEMS sensor on the same silicon. Apart from reducing the size of system-in-package devices and power consumption by up to 80%, merging sensors and AI poses electronic decision-making in the application Edge.
- In July 2021, Cirrus Logic announced its plan to acquire Lion Semiconductor to grow its mixed-signal business. The acquisition is worth USD 335 million and is expected to provide Cirrus Logic with a product portfolio and intellectual property for consumer and mobile applications and cater an opportunity to enter new markets.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porters Five Forces Analysis
4.2.1 Bargaining Power Of Suppliers
4.2.2 Bargaining Power Of Buyers
4.2.3 Threat Of New Entrants
4.2.4 Threat Of Substitute
4.2.5 Intensity Of Competition Rivarly
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Market
5. 5 MARKET DYNAMICS
5.1 Drivers
5.1.1 Significant developments in wireless infrastructure
5.1.2 Growing demand for VoIP and IP video
5.1.3 Rise in adoption of connected devices
5.2 Restraints
5.2.1 High complexity and initial development costs
5.2.2 Trade-off between performance, power consumption, and price
6. MARKET SEGMENTATION
6.1 By Core
6.1.1 Single-core
6.1.2 Multi-core
6.2 By End-user Industry
6.2.1 Communication
6.2.2 Automotive
6.2.3 Consumer Electronics
6.2.4 Industrial
6.2.5 Aerospace & Defense
6.2.6 Healthcare
6.3 By Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia Pacific
6.3.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Texas Instruments Inc.
7.1.2 Intel Corporation
7.1.3 Analog Devices Inc.
7.1.4 Infineon Technologies AG
7.1.5 NXP Semiconductors NV
7.1.6 Renesas Electronics Corp.
7.1.7 Xilinx Inc.
7.1.8 Broadcom Inc.
7.1.9 Toshiba Corp.
7.1.10 Samsung Electronics Co. Ltd.
7.1.11 STMicroelectronics N.V.
7.1.12 Cirrus Logic Inc.
*List Not Exhaustive8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITES AND FUTURE TRENDS
10. ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The Global DSP Market market is studied from 2020 - 2027.
What is the growth rate of Global DSP Market?
The Global DSP Market is growing at a CAGR of >7.28% over the next 5 years.
Which region has highest growth rate in Global DSP Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global DSP Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Global DSP Market?
Texas Instruments Inc., Intel Corporation, Analog Devices Inc., Infineon Technologies AG, NXP Semiconductors NV are the major companies operating in Global DSP Market.
